Tag Archives for " trading "

What do outliers have to do with trading?

Outliers in TradingThe word outliers became a popular word I believe, after Malcolm Gladwell wrote the NY Times best seller, “Outliers, the story of success” in 2008. 
 
In the book he talks about several successful people and came up with the 10,000 hour rule. His rule said that to achieve world-class success, one needs to practice your craft for 10,000 hours.  
 
The 10,000 hour rule is an interesting idea and one that could apply to trading. But what I want to focus on today is the concept that an outlier is a trade, a trading day, week or month that can make your year.

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Financials Start the Rollover

FinancialsThe financials had the biggest move of all the industry sectors that dropped last week, down 2.9%. Is this the end of their rally? They do look like they are starting to roll over.

The video below is a very condensed version of what I provide to my Insider Members in their Weekend Market Analysis.

In this video I review this week’s market action by looking at the S&P 500 (SPX), NYSE Composite (NYA) and Russell 2000. I then review the semiconductors (SMH), homebuilders (XHB) and the financials (XLF). Three stocks in focus are:

CAT Hitting a Wall?

CAT hitting the WallCaterpillar(CAT) cut its first quarter revenue and earnings guidance but held to the full year guidance.  I should add, at least for now.  I look at CAT in the brief video below.

As you can see in the chart below, CAT dropped from a closing high of 111.40 in July 2014 to a closing low of 57.91 in January this year. That’s nearly a 50% drop. Continue reading

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