Thursday Madness In Front Of Facebook IPO
By Robert Weinsteinit's not easy reading about the markets or finance in general without running into 5000 facebook articles or posts. I have received a lot of questions about the IPO as well. You won't find me buying it at the open if at all tomorrow. IPOs are mostly an insiders game and hanging out on the outside is not something I take lightly. I know the people on the other side of the trade have spent a lot of sleepless nights trying to figure out how much they can sell shares for. They are not about to let the shares go for one penny below what they believe the market will pay.
Companies like Sirius XM (SIRI), Sodastreem (SODA) and other novelties give me pause in my attempt to handicap facebook. Tomorrow happens to be option expiration day and I will focus my time and efforts towards finding mispriced options. I expect to find many due to the lack of normal attention caused by facebook.
I hedged my MAKO position, but I am also moving closer to pulling the plug on it. Another leg down and I will likely hit the road. I don't need a loser on my books for long. I timed the option hedge position well, hitting almost the top of the move. Now if the stock can hold steady the time decay will turn it into a winner.
Best of luck to anyone who... Read rest of the post
THE MARKET MECHANIC for 05/17/2012
By Market MechanicThe Market Mechanic has developed 3 proprietary indexes and oscillators: the Trend Index Aggressive (TI agg), the Delta Trend Index (DTI) and the Trend Index (TIndex). These 3 proprietary indicators combined with the Directional Movement Index (DMI), the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) give us 7 distinct, high probability set ups that are used to day trade the emini S&P market. These indexes and oscillators are applied on time frames from 5 minutes to 60 minutes (5, 10, 15, 20, 30, 45 and 60) and these 7 set ups are traded on all time frames. The final product of the combination of these proprietary and non proprietary oscillators and indexes is a mechanical system and methodology for identifying entry points into the market that completely sidelines emotion and allows its user to concentrate on the money management part of the trading equation.
The philosophy of the Market Mechanic is not to predict the market but to anticipate likely market scenarios that the market will produce on a daily basis and the best way to exploit these opportunities. These 7 set ups are designed to profitably and consistently exploit these market scenarios.
Markets are opportunity generating... Read rest of the post
THE MARKET MECHANIC for 05/10/2012
By Market MechanicWelcome to the Market Mechanic daily blog
The Market Mechanic has developed 3 proprietary indexes and oscillators: the Trend Index Aggressive (TI agg), the Delta Trend Index (DTI) and the Trend Index (TIndex). These 3 proprietary indicators combined with the Directional Movement Index (DMI), the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) give us 7 distinct, high probability set ups that are used to day trade the emini S&P market. These indexes and oscillators are applied on time frames from 5 minutes to 60 minutes (5, 10, 15, 20, 30, 45 and 60) and these 7 set ups are traded on all time frames. The final product of the combination of these proprietary and non proprietary oscillators and indexes is a mechanical system and methodology for identifying entry points into the market that completely sidelines emotion and allows its user to concentrate on the money management part of the trading equation.
The philosophy of the Market Mechanic is not to predict the market but to anticipate likely market scenarios that the market will produce on a daily basis and the best way to exploit these opportunities. These 7 set ups are designed to profitably and consistently exploit these market scenarios... Read rest of the post
