Recent content by Rhody Trader

The relationship between stock and bond prices moves in cycles. As you've noted, they are often negatively correlated because of investment flows back and forth. There can be times, however, that they move together. This tends to be in more transitional periods in the economy.

It used to be the 30-year was the main "bond market" indicator. That shifted to the 10 year a while back, however.

I think traders can certainly have cycles. A good trader will understand that potential and will look to identify indications of changes in their trading from that perspective.

I read a lot of the stuff Odean has done as part of my own PhD work. To call his conclusions meaningless is unfair. Yes, the methods matter and I have my own challenges to elements of what he's done. We have to keep in mind that he (and his research partners) have been among the first to look at...

The question I would ask you before getting into thinking strategy is what is your understanding of what the Bands are and what they are meant to indicate?

It's important to differentiate between news and fundamentals. They are related, but news is a short term thing while fundamentals deals with longer-term, bigger picture factors.

That's not necessarily true. You have to be very careful in that kind of environment to know which information you can use and what will only muddle your own analysis. I had that problem when I was an analyst. I decided that it was best I not trade the market I was covering. Or if I did, it was...

The question I can't help asking is why you'd want to do it?

Hedging short term positions is an expensive proposition. Traders don't usually do it.

As I said above, if you're looking at the transactional feed the LAST value is the most recently completed transaction. If you're looking at the live bid/ask feed it is the current lowest ask price and the current high bid price. In neither case does order size (number of shares) have anything...

As noted above, the exchange does not determine prices. It merely reports them. What exactly they report depends on the price feed you're looking at. There's a transactional feed which reports the last traded price. There is also the current market rate, which is the active highest bid and...

A stop order becomes a market order once triggered. That means your trade would be filled at the next available price. Unless your broker guarantees you can't go into a negative balance (check the fine print), if the market goes sharply against you enough to blow through your stop and the...

They mean the order was filled at the order price. For example, if your stop was at 101.50 it was filled at 101.50. Slippage would be anything other than 101.50 - better or worse.

As I said, it only matters if it's better/worse than the market expects and has positioned for. What economists expect (survey) only provide a potential guide. This is why the markets sometimes don't move at all - or move in the opposite direction - when good/bad data comes out. Think of it...

The first one is WAY more effective if you know how the folks doing the second one have already set the market up. Better/worse than expected is only really meaningful in the context of how the market is positioned. The survey expectations are just an average. The market position is what people...