Trading Blog TRADING BLOG: Traders Beware - It's Rigged
| TRADING BLOG: Traders Beware - It's Rigged |
 |
 |
 |
| Written by Ric Conzet |
| Wednesday, 10 September 2008 07:50 |
 One of the great options traders in the market, Jeff Clark, wrote an article titled “The best way to trade in a RIGGED Market.” The damn thing is rigged. I’ve felt that way for years. Nobody can prove a thing just like the Trilateral Commission, but several things occur just before the US markets make directional changes. Jeff’s preached this for years and I think he is right.
He feels the first thing to check before entering a short term trade is to check to see how Merrill Lynch, MER, is trading. If it’s going with the market all is well. If Merrill is going in a different direction be very careful. It shows you the strength or weakness of the short term direction. If it’s tanking while the market is going up watch out for a reversal. The second indicator that he uses that I agree with is the S & P 500’s 20 day EMA ( exponential moving average). It’s the line in the sand. If the trading gets too high above the average you will have a downward correction. To far below and a rally is on the way. Those are two of his favorites. I add the volatility Index’s short term direction ( if it goes up the market goes down ) and buying and selling figures. This is the choppiest trading market in 35 years. Traders beware.
|
Life Style
Become a Member
Tell a Friend
Like it? Share it!
