Trader Mike

Steve wanted me to take a look at Google. Monday, in the DaytradeTeam trading room, I said that I thought it was destined to hit $500 in short order. Once it broke the old all-time high of 475, I figured that a short squeeze could easily push it several percentage points higher to the $500 level. I didn’t think it would get this close to 500 quite this fast but here we are.

The million dollar question is what happens after it hits $500. My guess is that it will probably run to $500, do a nice upthrust just to trigger all the stops at that level and then pull back. The stock …

I’m still working my way through the November issue of SFO magazine. There’s a very good article by Nina Cooper in that issue about one of my favorite indicators - stochastic: “Facts and Myths of Misunderstood Stochastics” [(free) subscription required] It covers a lot of info about stochastic but the crux of the article is debunking these two myths:

Overbought/oversold readings imply a trend reversal.
Stochastics are useless in trending markets because they go to an extreme and stay there.

I’d bought into the second of those but the author makes some good points about how the indicator can be useful in trending markets.

Here’s my answer to the following question which was posted in my comments yesterday by Gary:

I’ve signed up for an evaluation of TC2000, which I was previously unaware of. However, after studying Worden’s videos and Help Contents on individual indicators, I’ve tried to find out if they would recommend where I could find info on how to interpret the combined indicators in regards to buy or sell points. Their reply was that they had none. Could you point out some of the useful indicator combinations that you’ve found to be reasonably accurate for determining buy/sell points?

For information about how to use indicators to determine buy/sell points it’s probably best to read some books on technical trading. A great …

There’s a confluence of bullish indicators on the NASDAQ.