Category: Technical Analysis

Technical Analysis, Down Market, Euro TARP, short lived short squeeze

Last Wednesday we discussed about a few possibility of market directions when Ben Bernanke spoke at the FOMC meeting. There are few scenarios that could happen after the meeting and verdict was if Ben only announced the Operation Twist, the market will probably sell off sharply.  The outcome was that was what actually occurs.  Market [...]

Read More

6 Basics of The Dow Theory

6 Basics of The Dow Theory

1. The averages discount everything: The world’s best and most efficient processor of information is the market itself.  If anything happens at all, for whatever reason, man-made or god-made, market will reflect in prices. 2. The market includes three trends: Up, Down and Sideway. Or Bullish, Bearish and Gyrating 3. The major trends usually have [...]

Read More

Why Put/Call Ratio Is An USELESS indicator

Why Put/Call Ratio Is An USELESS indicator

In options trading, there is an indicator used by many people including the main stream media called the Put/Call ratio. Put/Call Ratio reflects

Read More