This week's top trading blogs...

Commodity Trader

Fed meeting this week as well as any new developments out of Europe. My suggestion is to always look one-two weeks in advance for upcoming economic events when initiating trades. Just when it appears Crude was destined to move lower prices reversed finishing 1.65% higher today. $1oo appears to be a magnet for pricing and until we get $3-4 north or south of that level expect sideways action to continue. I do not feel comfortable trading either side currently. Read more here.

Afraid to Trade

Amazon’s (AMZN) chart structure is creating an interesting breaking point of tension between the higher and lower timeframes. While the daily chart argues for potential reversal higher, the weekly chart shows a barrier of overhead resistance that must be broken before a reversal higher can take place. It’s a good example of how to incorporate two timeframes in real-time, so let’s take a look at AMZN. Read more here.

The Trading Game

I have been reading Daniel Kahneman’s Thinking Fast and Slow and the going has been slow because I have gotten used to reading books on my tablet and having a large selection available. If I want to read a book I now have to remember to get it off the shelf. Going through this book has lead me to revisit an article I wrote on loss realisation many years ago and the rethink some of its underlying assumptions. Read more here.

Stock Chartist

When we look at a chart of FXI, the ETF of Chinese stocks, we see a classic inverted head-and-shoulder or ascending triangle or any of a number of bottom reversals. From the above chart it appears that the Chinese market would rebound in sync with the US market ….  should that come to pass. The extent of that rebound, however, is bound by different constraints than the US market when viewed from a longer-term term perspective. Read more here.

Condor Options

The media narrative at the moment is that U.S. investors are happy to ignore all things European for as long as modestly positive domestic economic news keeps trickling out. The headlines today about stocks being up “on” news from Alcoa were silly enough,* but this does seem to be a real theme – slight reductions in the odds of a 2012 recession mean it’s time to pile into stocks, apparently. Read more here.

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