Articles

Some say it is acute, some say chronic, we await further diagnosis. But Uncle Sam certainly looks unwell and this is no surprise.

In Trading Tutors Newsletter #159 I used an analogy away from the markets to explain the concept of a call option. Based on this it is quite appropriate to write about a current long setup where trading a straight call offers an attractive ‘reward to risk’ ratio.

The phrase “resistance becomes support” has been taught, ‘traded’ and no doubt even argued over, by many a trader over the years. Put as simply as the rule itself, markets will often find support at levels they once struggled to overcome.

The tide appears to have turned on equities markets across the world. Looking at the SPI200 (AAI-SpotV) in particular, and hence the overall Australian market, we have seen the 20th anniversary of the May 1986 top play its part.

When the market is in the depths of a pullback, such as we are currently experiencing, traders watch other traders to see what their next move might be.  We all do it, yet none of us wants to give away our own position.