Market Traders Insight & Commentary July 14, 2019

The Trading Daily Market Commentary features a summary of selected market segments as well as economic matters. Its content of interest is made available to all traders and investors at large

The difficulty the market traders have is that even while you presume you have a sharp vision of the future, you are bound to get out too soon, thus missing the final part of the market rally, or you will get out to land solidly. 

For the traders, the bearish types, numerous articles are attempting to explain why Investors are fleeing stocks - Consequently, so why is the market still climbing?. And joining to the bearish sentiment, there is one of our beloved, Art Cashin, using S&P 500 3,000-hat, hinting of developing a risk of recession.

On the bullish front, Fed chairman Powell is stating that he is welcoming a quick interest rate cut as conditions emerge - So, if the American economy is such a great shape, why the hurry to cut rates?

So, what kinds of market traders are there?

One of the leading crowd is the market traders group which gets classified as pattern day traders. Under Financial Industry Regulatory Authority (FINRA) Rule 4210, these traders and investors must keep at least $25,000 in their trading account at all times, and they can jump in and out of stocks all they want, however, they must follow settlement rules, margin, and other sorts of things.

Next, there are swing market traders. These people do not like the poker table very much as the craps table game, to use it casino terms because there are some conditions in craps where it is an even-money arrangement with the house.

And if one knows the Martingale Roulette Strategy concept, one can sometimes get very lucky, or other times one bust. Plenty of day traders would preferably be swing traders simply because it is much more relaxing than watching a fast-time chart loaded with indicators.

Then there are position market traders. These type of traders resemble something like "slow money" and they proceed to go long when the markets are in a longer-term significant up move (like the S&P500 chart we are showing below). 

When the given market is at long-term completion stage, they roll into cash, sleep like babies and way for the whole world to cease being so crazy. The burning question, therefore, is what kind of Market Trigger Puller are you fundamentally wired for? 

If one likes to make a leisurely trading decision, a long term price aggregate may work well. A little bit' faster on the draw' and one has got the character to be a swing trader and is merely waiting for the market to move the wrong way, and a trade position will be shot.

Therefore, the fundamental question each trader and investor needs to ask themselves: How much effort for how much risk/reward? The most innocuous thing for most market traders is to use a gunslinger and fret about the essential things in life.

Also, there are market participants crowd that perform a great job advising people who fancy betting big money to make huge money and get off the mark: for instance, Gamblers Anonymous.

Nobody really knows what might be their views on day trading; however, it would be fascinating to study the psychological characterization of a day trader or investor.  

How many of you still feel successful as market traders? There are some markets which move too slow if one is trying to find a trend and also very rapid if one is attempting to lock in some healthy gains? 

By the way, traders and investors, who follow the news very closely, will have an excellent chance this upcoming few weeks to observe market information asymmetry at work.

As the markers turn

When Gold isn't a Gold standard, and it is treated as a commodity, then mostly Gold goes up against the stock market. Therefore, we have the stock market at historical highs, and we have the Yellow metal caught a bid.

Currently, the DJI has clipped 27,000 level, the S&P 500 said goodbye to 3,000 and heading higher, while NASDAQ 100 is heading towards 8,000 levels.

S&P 500 Index

Click the Image to Enlarge

The S&P500 index closed higher on Friday. The higher-range closure sets the stage for a steady to higher advancement towards the Inner Index Rally 3040, and ultimately to the Outer Index Rally 3125 (The sixth phase).  Currently, there are no significant resistance levels: the downside target is Mean Sup 2976, and distance Key Sup marked at 2914.

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