We’re now going into May which is often a turning point month for some markets. “Sell in May, and go away” is a famous stock market quote. High yield credit is another market which often sees May turning points. These markets, PMs, and more are in the following video.
Trader Scott has been involved with markets for over twenty years. Initially he was an individual floor trader and member of the Midwest Stock Exchange, which then led to a much better opportunity at the Chicago Board Options Exchange. By his early 30’s, he had become very successful in markets, but a health situation caused him to back away from the grind of being a full time floor trader. During this time away from markets, Scott was completely focused on educating himself about true overall health and natural healing which remains a passion to this day. Scott returned to markets over fifteen years ago where he continues as an independent trader.
4 Comments
I got a few question about markets. A)What piece of data to look for when deciding if there is a correlation taking place between bond and gold? (positive or negative) B)How to find out if a stock, index, sector or ETF has became a leader or remains a market leader? C)Do you mind explain more on the correlation between Rupee and gold? Thanks a millions Scott great educational video.
A) It is just constantly gauging the price action. I’m not a fan of price action alone, without volume, so the volume action should also sort of line up. Short term ending actions, etc. But be careful as the correlation at times is almost perfect, and other times it isn’t. So just keep watching it, and if you want to write things down fine. It’s basically sort of tape reading. But anticipating in the bigger picture that it will change coming up, so be watching for those signs. But right now, just keep paying attention, it will help your overall skills a lot. And don’t listen to what’s said in the media, watch it yourself. And when you spot a change, yet the media are going wild over the old correlation, there may be the opportunity. B) Some of the same stuff as in part A. Tape reading, price/volume signs, and just notice the relative strength. Don’t necessarily rely on technical indicators for this as much, just observe and write a few things down. Improve and hone your skills. Watch how they are reacting to news, how much bounce they have on “bad news”, how they bounce while others don’t. Look at what QQQ has been doing for a while. The selling was not on heavy volume, so we can have an overall view, but QQQ was not fitting in with that view. Just keep working hard at this, and start to rely on your power to observe and think with as little bias as possible, except to your work. C) India is a huge buyer of gold. So strong INR has a few benefits. It’s likely signalling a relatively stronger economy. A huge selling climax is a sign of massive capital moving back into the currency – confidence. A change in the fortunes of a country, even with tons of bad press. A stronger currency means relatively cheaper gold, and a slowly improving economy means more wealth to buy gold. Of course one reason Indians love gold is because of the horrible currency over the years, but this all plays into it.
I’m kind of feeling the need to see visually, so I can in-depth my understanding related to the responses for the questions A and B. Scoot can you demonstrate in a video with a few example related to question A and B? Thanks man.
I got a few question about markets.
A)What piece of data to look for when deciding if there is a correlation taking place between bond and gold? (positive or negative)
B)How to find out if a stock, index, sector or ETF has became a leader or remains a market leader?
C)Do you mind explain more on the correlation between Rupee and gold?
Thanks a millions Scott great educational video.
A) It is just constantly gauging the price action. I’m not a fan of price action alone, without volume, so the volume action should also sort of line up. Short term ending actions, etc. But be careful as the correlation at times is almost perfect, and other times it isn’t. So just keep watching it, and if you want to write things down fine. It’s basically sort of tape reading. But anticipating in the bigger picture that it will change coming up, so be watching for those signs. But right now, just keep paying attention, it will help your overall skills a lot. And don’t listen to what’s said in the media, watch it yourself. And when you spot a change, yet the media are going wild over the old correlation, there may be the opportunity.
B) Some of the same stuff as in part A. Tape reading, price/volume signs, and just notice the relative strength. Don’t necessarily rely on technical indicators for this as much, just observe and write a few things down. Improve and hone your skills. Watch how they are reacting to news, how much bounce they have on “bad news”, how they bounce while others don’t. Look at what QQQ has been doing for a while. The selling was not on heavy volume, so we can have an overall view, but QQQ was not fitting in with that view. Just keep working hard at this, and start to rely on your power to observe and think with as little bias as possible, except to your work.
C) India is a huge buyer of gold. So strong INR has a few benefits. It’s likely signalling a relatively stronger economy. A huge selling climax is a sign of massive capital moving back into the currency – confidence. A change in the fortunes of a country, even with tons of bad press. A stronger currency means relatively cheaper gold, and a slowly improving economy means more wealth to buy gold. Of course one reason Indians love gold is because of the horrible currency over the years, but this all plays into it.
I’m kind of feeling the need to see visually, so I can in-depth my understanding related to the responses for the questions A and B. Scoot can you demonstrate in a video with a few example related to question A and B?
Thanks man.
Sure thing Raphael.