by Gavin M.
The above chart shows that only one stock, one wonderfully perfect mega awesome stock runs the entire US market - AAPL. Technology has overcome finance as the biggest sector by weight in the SPX. Apple is its largest constituent by individual weight as well. So there is no doubt each time I go on Twitter and tell the wonderful people who follow me to trade the trend by using AAPL stock chart, they will have a better chance at winning.
Look at the chart. That is a 15-minute chart. It is incredible how SPX just tracks AAPL almost at 100% correlation. So if you are some crazy hedge fund out there with a nefarious plan, all you need to do is issue some bs press release or rumor on Apple and you get yourself the move you need.
There is no doubt the biggest pumper and Apple pom-pom boy Carl Icahn keeps tweeting about this stock because he knows that a rising tide lifts all boats. He pumps Apple and gets it to go higher, in turn the overall markets will see it as positive and rise with it. Correlation algos always have a field day when Apple gets the party started.
I am not being bitter about all of this. In fact, I trade Apple almost daily. It's very liquid, it's quick and it's fun to trade. Those who have little to no experience in trading get killed right away trading Apple. Apple is a stock that fools you into thinking it is an easy trade with cheaper options. It is a stock that requires a lot of experience and discipline. If you jump into Apple thinking it will behave like any other stock out there, things could get quite messy.
I have no preconceived notions for where Apple could go. But it is always epic when they pop it so high for a few days and then dump all of those gains in one hour. The drop itself is worth the many days of waiting.
In any case, if you ever need any clear proof that Apple rules the market or better yet, APPLE IS THE MARKET, you only need to stare at the chart above.
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by Mike L.
What we really excel at in our trading classes is the personalized attention to our students. We ensure that they get enough practice in the markets with our supervision in order to be confident in trading. The image below will speak for itself.
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by Gavin M.
To borrow Grease's lyrics, "V is the word, it's got groove it's got meaning..." How are you all loving the market rollercoaster? I'm trying a new mindset out. It's something that I should've done a long, long time ago. I'm trying to just not care about how stupid these markets are and just trade them for what they are. They may be the stupidest, most manipulated markets out there but they're the only ones we've got.
Daytrading offers you one unique perk - to only care about the now and forget about the future. There is some peace in that notion. Predicting the future is a little more difficult but trading the NOW is much simpler. So my friends, do not be stressed. Be happy that these markets continue to give you opportunities to take advantage of these huge swings.
C'est la vie!
Traders from Equity Sense will be writing on this blog on positions and other market-related things.