So here we are once again at an interesting technical juncture just in time for a payroll report. The market has found its footing since Monday's selloff and looks poised for a technical bounce. The Nasdaq and S&P have held safely above their August lows and have finally reached oversold short-term stochastic readings. It's a nice technical setup for the bulls but we'll have to see the if tomorrow morning's jobs data can provide a spark. On the flip side, I think that breaks of the trendlines connecting the indices' August and September lows (or more simply, new September lows) would embolden the bears.
No changes
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Up | Up | Up |
| Intermediate | Up | Up | Up |
| Short-term | Down | Down | Down |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
*** I'm simply using the indices' relations to their 200, 50 and 10-day moving averages to tell me the long, intermediate and short-term trends, respectively.
Mike, I have been intra-day trading stocks for two months now and averaging about 1R per day over the past two weeks. But I have been trading with small risk per trade amounts ($5 to $10/trade) to get the hang of my system. I am ready to start ramping up my risk per trade amounts, but I realized that I may have a problem. I have been trading the one minute charts, sometimes staying in for only a minute or two on a couple of well-known large cap stock stocks. In your experience, if I begin to increase the number of shares from, say a risk per trade of $10 (or 250 shares) to eventually, a risk per trade of $1000 (or 25,000) shares, will it have a huge effect on my ability to get in or out of the stock? Thanks for any help with this. Chris Curry
Chris,
Yeah, I think you're gonna run into problems if it takes you 25,000 shares risk $1,0000. That's a stop loss of only 4 cents, right? You'd better be trading some VERY liquid stocks. If you get some bad slippage on just one trade you're gonna be really upset.
Mike, did you end up at TOS or IB? Chris Curry
I tried TOS for a few months but I didn't like their user interface. I've been using Terra Nova's (tnfg.com) Tradient Pro platform for just over a year now.