I didn't know Mark Douglas had passed. Really sorry to hear that. RIP. I think Trading in the Zone is one of the best books on trading that I've ever read. The Disciplined Trader is also excellent. My recollection is that he wrote Trading in the Zone after The Disciplined Trader and he incorporated much of it in his later book. They're both great, but I'd probably say if you're going to read one then read Trading in the Zone. Mark Douglas deals with the psychological aspects of trading better than anyone else I've ever read. Invaluable stuff.

It was an idea from either Steve or Matt and had broken out a couple of days ago and then for reasons still unknown it's down 11% today. Yet another good advertisement for always taking some quick profits and trailing up stops, where have I heard that before 

I've found that like any indicator it's some combination of art and science. What I'm seeing is that you clearly only want to take the trade if there's a good candle set up, and Matt's has made a point of saying that -- but I'm noticing that fairly often you get a false cross followed not long thereafter by a "real" cross, often with divergence in the indicator. Happened here in the Qs. So far it has produced a decent small trade in QLD, but mainly I'm posting it because of the "double-cross" (best with divergence) being one I'm now watching for. When there's a clean enough candle set up, then I just take the initial cross. Like I said, some art, some science :-)

small caps really storng this morning

Thanks for the chart Steve -- IBB and XBI both taking very good vol.

Draghi will be flipping on some 220 tomorrow.

Weekly is nice, daily chart is kind of a mess. Wondering if uranium might be the next natural resource play to catch fire.

Starting to scan intraday for big winners and big losers, looking for the trade. NFLX today was a nice one. The short was good for about 2.5% by the close. Sorry to say I had to run out and do a few things while it set up and I missed it, but will try to post them in real time when I see them.

Well it would have been a nice short if were able to borrow it :-)

Matt, I agree with you completely on the psychological issues being the biggest. We're on the same page. Ultimately we all integrate the technicals with our own psyches and come up with ways to trade that work for US. It's always personal in some way or the other, how we each do this thing. There are no magic formulas, just helpful patterns that repeat often enough to give us edges.

Matt -- Question on the using the sto setup -- I think that I've seen you use both the 10 period and 14 period for the fast sto with the 3 and 5 min charts -- do you look at both, or just use the 10 with the 3 and 5?

And then just use the 14 for anything longer than 5 mins?

Thanks.

Matt -- I agree with you completely -- the more I work at creating specific notes ahead of time for actions to take if certain things occur, the better I do in the heat of the moment. I do keep a trading journal and I find that when I get lazy about my journal I usually regret it. Thanks for talking about this!

It's really like a perpetual money machine financed by the Fed. It will work until the overleveraged corporations (that's not AAPL) find their cash flow for debt service getting squeezed in the next slowdown. Certainly answers the question as to who is the marginal buyer.

http://www.zerohedge.com/news/2016-04-15/everyone-selling-stocks-who-buying-goldman-explains

Undoubtedly Obama and Biden want to meet with Yellen so they can encourage her to raise rates going into the election.

That's a great bunch of charts. Thanks.

ha, ha ....I'm embarrassed to ask you what all you've created systems for

Thanks -- maybe when you have a little time you could do a short video on the anything else we might want to look for or be aware of in using it.  

Looking at ERX as a potential candidate for buying a pullback, using your 10/60 Sto system. A few quick questions. From your experience, does it matter how long the 60 has been above 80 when you get the pullback and cross in the 10? Is longer embedded above the 60 better? And do you only take the trade if the 10 falls BENEATH 20 before it crosses back up (as opposed to it falling down to something like 30 and then crossing back up)? Any other handy hints on using this tool? Thanks!

Here's the way it looks now.

Whatever...

Was just looking at BIB and happened to notice that twice yesterday there were perfect 10/60 setups. Thought I'd post the chart. Wish I'd been smart enough to do this yesterday!