Peculiar stock market trends, we just don’t get in other markets

I’m primarily a futures and FX trader… but I grudgingly admit that the Stock Markets have some huge advantages.

Stock Markets are rigged to go up most of the time

Think about it. The S&P 500 is the biggest (and therefore most successful) 500 companies in America. If your company fails, it gets removed from the index and replaced with a better company.

If you looked around your suburb for the handful of most successful businesses, on average they would go up in value. Because thats what successful businesses do!

The evidence is clear. For the last century every single major stock index had over 100,000% gains (not a typo)

It’s a Stock Market, But Also A Market of Stocks

There are some things that are demonstrably provable about stock market trends, which provide clues we just don’t get in other markets.

Smart traders pay attention to market leaders like Facebook. When those market leaders start to fall over first… trouble is brewing

Market Internals give us information we cannot get with other markets

The key market internals for me are $TICK and $ADD.

See in the recent chart how the increase in $ADD (stocks advancing less stocks declining) indicates strong buying pressure at the lows, and a divergence at the highs?

See how price doing up on weakening internals gave us a clue about the upcoming drop?

Now look carefully at that chart again. See how it nailed the bottom as well?

I’ll be diving deep on this stuff over the coming week or so… but if you want to shortcut it all and get it in FAR MORE DETAIL just buy the Price Action Masterclass.

It’s cheap, awesome, and will make you a fuckton of cash.

Today let’s look at the last big advantage of Stock Markets.

They only trade a few hours a day.

Take a look at the 24hr S&P futures chart

Now compare it to the cash $SPX market.

See how the candle shape is often different?

This is a gap n crap. What that means is that the bulls thought a bottom was in, and bid the price up HARD.

But nobody else was buying it. This is a bad and rare fumble by the bulls.

Advantage bears.

I’ll be digging into this stuff all week, so stay tuned.

And check out the Price Action Masterclass for more detailed explanations.

The following two tabs change content below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: