We are here to help you make better investment decisions, not bash the Fed (or anyone else for that matter). For years, we have argued that policy makers look at markets first and everything else second. The Fed’s Third Mandate: Markets Everyone wants us to believe that the Fed has a dual mandate: Help…
The simple premise is that if the price of security (or market) is trading above a moving average then the action is healthy and if the price is trading below an important moving average then the action is not as healthy. It is also important to note that it is healthy to see a stock (or market) move back to a moving average on light volume during an uptrend (converse is also true) and then bounce off that moving average on higher volume (ideal scenario). This natural occurrence is actually considered healthy as most leading stocks (and markets) tend to do this during a protected uptrend. That said, moving averages offer prudent investors a healthy chance to accumulate a position as the underlying investment pulls back to a logical area of support. However, a technical sell signal will be triggered once an important moving average is broken (especially if volume is heavy) and that is an important warning sign most investors should look for.
Adam Sarhan, CEO and Founder of Sarhan Capital, announces his foray into blogging in this introductory blog post
Higher Highs & Higher Lows: In the simplest sense, the definition of a bull market is a series of higher highs and higher lows. In addition to buying strength (only buying breakouts) is to step up and buy weakness in strong uptrends. This is one tool in my toolbox that helps me successfully navigate capital…
There are two sides to every trade: The Bulls & The Bears Basic Wall Street Lingo The bulls want the market (or stock) to go higher and the bears want the market (or stock) to go lower. Typically the bulls go “long” and the bears go “short” in order to express their view. The most…
The Lovely: Fed Meets Next Week and a lot of open questions: Taper? Not Yet? How Much? Good: Market and leading stocks acting well China said its exports rose by 7.2% in August, topping estimates for a 6% gain. Read here US consumer credit growth rose at a 4.4% annual rate in July expanding by $10.4…