The Power of Mentoring in Cultivating Trading Success

An interesting meta-analysis (a study that statistically combines many different research studies) found that mentorship is associated with a number of favorable outcomes, including positive attitudes and career success.  That study found academic mentoring to be particularly effective, enhancing the motivation, performance, and goal-setting of proteges.  In the recently published Forbes interview, Charles Kirk points… Read More..

An Experiment in Becoming Your Own Trading Coach

I'm starting a trading experiment and will be recording the results on the blog periodically.The experiment has involved going back to my research and identifying robust, replicable patterns in the ES futures contract and SPY ETF.  I specifically selected patterns that play out over a multiday period, with average holding times of several days.  The… Read More

One of Europe’s Latest Debt Nightmares

One big clue to the size of the oncoming debt deflation is the central bank's ongoing policy shift away from bail-outs -- where taxpayers shoulder the losses at a failed bank -- and toward so-called bail-ins, where the losses are dumped onto ... Recent Commentaries |… Read More

The Power of Apprenticeship in Trading

The recent post discussed how we can turn our defeats into development.  Since writing that, I received an email from an accomplished prop trader who leads a group within the larger organization.  That trader had just sustained the worst losing day of his career.  So what did he do to address the situation?*  He stayed… Read More

Transportation Average – A Big Concern For Stock Bulls?

If you follow the markets, you have probably heard about the "non-confirmation" warning being flashed by the fact the Dow Transportation Average has failed to post a new high simultaneously with the Dow Jones Industrial Average. Recent Commentaries |… Read More

Friday: CPI, Yellen

Earlier from the Philly Fed: May Manufacturing Survey Manufacturing activity in the region increased modestly in May, according to firms responding to this month’s Manufacturing Business Outlook Survey. Indicators for general activity, new orders, and shipments were positive but remain at low readings. Employment increased at the reporting firms, but the employment index moderated compared with… Read More

Assessing Demand and Supply in the Stock Market

By now readers are aware that measures I track closely are buying pressure (demand) in the market versus selling pressure (supply).  My measures are derived from a decomposition of the NYSE TICK, which is issued by the New York Stock exchange.  The TICK is a running total, updated many times per minute, of the number… Read More

Existing Home Sales Lower Than Any Economist’s Estimate; Rising Supply a Good Thing?

Existing Home Sales DisappointEconomists overestimated existing home sales today, rounding out another impressive day of overoptimism.New home sales came in at a seasonally adjusted 5.04 million annualized rate.The Bloomberg Consensus Estimate was 5.22 million. 5.04 million was below the lower end of the consensus range of 5.10 M to 5.32 M. Existing homes sales are… Read More

China Manufacturing PMI Contracts Third Month, Output Index at 13 Month Low

The slowdown in China continues as the HBSC Flash PMI shows Output contracts at strongest rate in just over a year. Key PointsFlash China Manufacturing PMI™ at 49.1 in May (48.9 in April). Two-month high.Flash China Manufacturing Output Index at 48.4 in May (50.0 in April). 13-month low.Commenting on the Flash China Manufacturing PMI survey… Read More

CoreLogic: Southern California April Home Sales up 8.5% Year-over-year

From CoreLogic (formerly DataQuick): CoreLogic Reports Southern California Home Sales Rose 8.5 Percent Year over Year in April 2015A total of 21,708 new and existing houses and condominiums sold in April 2015 in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties, up 9.9 percent month over month from 19,760 sales in March… Read More

Thursday: Existing Home Sales, Unemployment Claims and More

From Jon Hilsenrath at the WSJ: Fed Looks Past June for First Rate HikeFederal Reserve officials at their April policy meeting said in the most explicit terms yet that they are unlikely to start raising short-term interest rates in June, as seemed possible when 2015 began. Officials have been saying they won’t begin lifting their… Read More