Jun 29, 2016
Written by:
Al Hill
Traders, I noticed an interesting correlation between the UVXY and the price movements in the S&P 500. Too often, traders are day trading UVXY as a proxy to lever up on movements in the S&P. This can be detrimental to daytraders even when markets are highly volatile. It is important to understand when divergences are forming in the UVXY. These divergences gave me a basis for believing the market was due for a bounce of of Monday’s lows. On Monday, June 27th, the S&P 500 gapped lower and continued lower by 45 points intraday. At the same time, the UVXY was failing to take out its highs from Fridays large decline. Therefore, as price declined, volatility was declining also. This was our first warning that the decline was getting ready to reverse course.
For some, trading comes down to indicators, stock screeners, and economic reports. Very few traders elevate their game enough to realize the vital importance of sound mental health. In this article,...
Awesome Day Trading Strategies
Turtle Trading System vs. Al’s Trading System The turtle trading system fascinates me on many levels. First you have two guys (Richard Dennis and William Eckhardt) debating over whether they can mold...
Day Trading Basics
Day trading or swing trading that is the question. If you are an active trader, day trading and swing trading will feel like second cousins. At the end of the day, both trading methodologies seek to...
