Tag: only price pays

no need to fear a big drop

“News” that George Soros is shorting stocks grabbed headlines once again this week.  I don’t see why this is getting people so worked up.  Soros has supposedly been making big bearish bets since the beginning of the year.  He’s been warning of a repeat of the 2008 financial crisis and apparently has a 2.1 million share put option against the S&P 500. I have no clue if George Soros is right.  However, I do know that “news” like this does nothing to help us make money.  We make money when we position our trades in the direction of the 8 and 21 day moving averages.  Right now these moving […]

turn down the volume

In case you hadn’t noticed, the S&P 500 has had a MONSTER rally since February 11, rising over 14%.  Just since the beginning of March, the index has risen over 137 handles! Knowing this, look at the headlines below: March 2nd – Zero Hedge: Small Cap Stock Soar on the Lowest Volume Day of the Year March 17th – The Wall Street Journal: If No One’s Trading Stocks, Is it Really a Rally? Has any of the hand-wringing about the, at times, anemic volume of this rally been helpful?  ABSOLUTELY NOT! I understand the disbelief.  When I calculated the potential measured move of the bullish “W” formation in […]