Poker or gambling in general has very interesting correlations to trading. In both you are dealing with uncertainty, the ability to handle your emotions and how well you manage your money.
And doing all of those things gets back to discipline and your ego. Let’s start off with knowing when to fold ’em as they say in poker or as they say in trading…cutting your losses. Some good basic rules of poker apply to trading.
The stock market has been on fire since the election in the so called Trump rally. As of Friday’s close, the Dow Jones Industrial Average is up 8.5% since the close on election day, November 8, 2016.
So will the inauguration signal that’s it’s time to sell? Continue reading
Today we look at the Energy Select Sector SPDR ETF (XLE) and ask whether the energy sector has hit the wall.
The XLE is one of the most active industry sector ETFs with a 50 day moving average of 95 million shares. It tracks a market-cap weighted index of US energy companies in the S&P 500.
In the big decline from the peak in June 2014 to the low in January 2016, XLE smashed thru a major uptrend line from the 2002 low, in July 2015. It pulled back to it last November but then quickly fell away.
It has had a big move up off the January low, but running into significant resistance at 72.0. It has not broken down yet. Watch for consecutive closes below the 10 week ema and then for the 10 ema to cross below the 21 sma. Look at September 2014 and June 2015 for good examples.
Weekly April 2011 – Sept 2016
The top three holdings in the Energy Sector ETF are Exxon Mobil (XOM) at 18.65%, Chevron (CVX) at 14.81% and Schlumberger (SLB) at 8.83%. I’ll start with Exxon Mobil. Continue reading
The word outliers became a popular word I believe, after Malcolm Gladwell wrote the NY Times best seller, “Outliers, the story of success” in 2008. 
The semiconductors had the biggest move of all the sectors this last week, up 5.6%. But can this move last? Where are they going from here? And do all the semiconductor stocks look similar?
In the video below I review this week’s market action by reviewing the S&P 500 ETF (SPY) and the Russell 2000 ETF (IWM). I look at the Semiconductor ETF (SMH) which was the biggest sector mover this week and then look at 6 semiconductor stocks:
The video attached below is a very condensed version of what I provide to my Insider Members in their Weekend Market Analysis.
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