Category: Article

Small Cap Stocks Are Breaking Out In A Big Way

Like it or not, the small cap index, Russell 2000 is breaking out in a big way.

Small Cap Stocks Are Breaking Out In A Big Way Image of IWM Breakout

We’ve been moving sideways since late 2016 and just this week we saw a gap and go sharp move to all-time highs and are in the process of resolving this 20-week range to the upside.

For all the bear attacks incoming, yes this move can fail, yes we’re overbought and yes, we do have plenty of headline risk over the near term with earnings, fiscal policies, government budget shutdown issues, etc. that could de-rail this move.

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Splash - Trading Tips Tricks and Painfully Learned Lessons

Trading Tips, Tricks, and Painfully Learned Lessons

Trading is difficult.

Anyone who tells you otherwise probably hasn’t traded long enough, or is trying to sell you something.

I certainly don’t have all the answers, but I have learned a lot over the years and, throughout this post, I’m going to share with you some high-level trading tips, tricks, and painfully learned lessons I’ve picked up along the way. 

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Splash Image - Trading Leveraged ETFs For Max Profits

Trading Leveraged ETFs For Max Profits

Leveraged ETFs get some very divided opinions in the investor and trading community.

On one end of the spectrum, they get tremendous love from adrenaline-chasers looking to bet it all for a quick double on their account in short time.

And on the other, there is a great deal of hesitation backed by an army of articles written with the warnings

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Splash Image How Market Internals Can Improve Your Trading

How Market Internals Can Improve Your Trading

If you trade stocks and you don’t follow market internals, also known as market breadth, then you’re missing out on a lot of valuable information.

Like any other study or indicator, market internals aren’t guaranteed to get it right all of the time, but when they do begin to diverge or exhibit some

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Crude Oil Testing Appetite of Long Term Bulls

After falling more than 11% in the first 3 weeks of March, crude oil finds itself re-testing a rising multi-month trendline extending back 12 months to April of 2016.

Image Crude - Crude Oil Testing Appetite of Long Term Bulls - The Trade Risk

Short term momentum remains lower in the black liquid, and therefore caution is advised, but be aware longer term dip buyers could start picking away around this 47 area.

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Bullish Weekly Developments In Small Cap Stocks

After 14 weeks of moving sideways, the small cap index, Russell 2000 $IWM is back re-testing the December 2016 multi-month highs.

Image of IWM - Bullish Weekly Developments in Small Cap Stocks - The Trade Risk

We briefly broke above this 138 area in late February, but ultimately couldn’t maintain higher prices for very long and traded back down towards the middle of the range.

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Current Stock Market Technicals Into the Fed

All eyes are on the Fed tomorrow which has the potential to be a market moving catalyst. I have no helpful insights into what remarks to look for from the release, but I can outline the current stock market technicals to help you create a plan for the reaction.

  • The $SPY ETF is trading around its largest pullback YTD which is a laughable 3 SPY points off highs.
  • The VIX is off YTD lows, trading north of 12 and was up about 10% on the day earlier in the session.

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