S&P 500 Falling – Why All the Apple Stocks in the World Won’t Fix Broken Cart
Forex Market Morning Outlook
Having said that, the forex market is looking pretty glum this morning. Prevalence of strong yen and weak carry trade crosses means we read that as a “market down” signal. Gee.. the S&P 500 is down. Who’ddathunkit right? I’ll have a couple of pictures/charts to put up today which ought to give you a big clue as to where the market activity is these days. Don’t despair when you see the charts, however – as we see trading opportunities to make money all over the place – even though most retail traders are avoiding this market like the plague.
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For those following the markets closely I’m seeing a “pro-risk” turn as of 1:10pm (now 1:20pm). Make of that what you will. It didn’t take long for the market to change it’s mind either, as Yen rallied post Bernanke statement – sending us choppy back down. Narrow range / unsettled days like this are tough to work. Personally I prefer to get at least a half point from zero on an index before working the binary options ouija (forex trading) board. We simply haven’t been far enough outside zero to make money (at least the way I trade) today. Hope you’re having better luck.
Will the Market Call on Jesus the Miracle Goaltender?
We got the widening gap from zero today and as we head for the close the only thing out there to reduce the 1+% drop in the markets today would be Jesus the Miracle Goaltender. We’ve talked about him previously (and he has miraculously come through!) – so I’ll be on the lookout for a weakening Yen & USD combined with strengthening risky forex trading crosses plus falling VIX. That would bring an opportunity for a binary options call prior to the close (AnyOption lockout is 10 mins before close, most everyone else is 15mins – so be advised). Otherwise I’m out. I promised some charts for you later today and they’ll be out this evening… nothing world stopping… but very telling nonetheless.
Volume Charts Telling
You don’t have to be a rocket scientist to get the gist of the first chart: the *real* trading in the stock occurs outside your ability to capitalize. Look at how much volume gets jammed through the tape at the end of the day (and to a lesser extent the beginning of the day). This trading volume is part of a world where you and I *simply*don’t*exist*. This is high frequency trading, end of day ETF arbitrage, closing of books trading that happens so fast you and I can catch none of it. On the other hand do you also notice the relative dearth of volume during certain parts of the day? Do you think that might be a place where a small trader might have a chance to compete?
Note the Consistent Volume Pattern
Click for Larger ImageSource: Yahoo Finance
