Monthly Archives: July 2014

Trading Doesn’t Build Character, It Reveals Character

“Trading doesn’t build character, it reveals character”, is a play on the famous Marv Levy quote about football.

Football

I’ve read a lot of articles on the psychology of trading, but this short piece by Brett Steenbarger on TraderFeed really gets to the heart of what motivates traders and what it reveals about their character.

S&P Flat on the Week and VIX Up 5%

The S&P 500 index finished the week unchanged but the VIX was up over 5%, the divergence sending a bit of a mixed signal.

53.vix chart

The Russell 2000 still looks weak and the DOW closed on the support line of a six month rising triangle pattern.

53. Rut chart

53. djia chart

I’ll be looking at the major averages in more detail over the weekend.

$VIX Perking Up

We will see the degree of concern traders have going into the weekend in a couple of hours, but right now the VIX is near the highs of the day.

53.vix chart

Semi’s Take Out Support

On Wednesday I suggested the Market Vectors Semiconductor (SMH) index was in danger of breaking this months lows. Today it gapped open, below both uptrend and horizontal support lines, and it looks like it is heading for a test of the 50 day moving average.

53. SMH  chart

Too Soon to Look Back?

The Irrelevant Investor takes a look back at the divergence in the Russell 2000 index earlier in the year, and the resiliency of the broader market. Unfortunately, the Russell has diverged again, retracing about half of its March/May decline. Hopefully, it doesn’t revisit those previous lows and the rest of the indices do not have to prove themselves a second time.

image

Tesla Charging Up or Running Down?

Tesla (TSLA) is holding above its 50 day moving average, and reverting around the 50% retracement level of its February/May range. Volume is weak and money flow is negative. If the stock is going to move higher it has to do so soon, lingering near this support zone is dangerous.

52.  TSLA chart

Dark Cloud Cover for Hawaiian Airlines

Shares of Hawaiian Airlines (HA) surged 14% in yesterday’s session on earnings and news. The jump formed a large white candle and took the stock price back above its 50 day moving average. Volume spiked higher and the MacD made a bullish crossover. Perhaps the move was too much too soon, because after opening higher the stock is down over 7% at this point in the session. The higher open and move lower have formed a “dark cloud cover” candle on the daily chart.

52. HA 2 chart