Removing the Human Factor is Not Total – Part I Chart $GC

I start with an apology for missing very consistently my own objective to post on a more frequent basis.  Amazing how easy it becomes when “I” get in the way of achieving “my” objectives.  In my own defense, I have been working diligently on the MJF1 Partners’ auto trader.  I’m excited to bring it to the LogicalSignals Trade Room where I’m already testing it in real time.  The results are exciting.

NormalVariableRandomI have often stated, “If you can’t beat ’em, join ’em.”  In doing so I’ve had to quiet more times than not the “trader” in me.  Why?  Because the trader has emotions and emotions can interrupt the decision processes, by hesitating.  Computers, on the other hand, don’t hesitate.  They have their marching orders and execute them.  As “traders” we need to understand that there are a myriad of algorithms in operation firing off orders at all times conceivably in all traded markets.  Add to that the myriad of strategies that are at play via the myriad of algorithms in operation firing off orders at all times conceivably in all traded markets.  Get the picture?  To be successful in trading  you really can’t care about the “who, what, where, when or why.”  Remember it’s only a number.  And many relevant numbers are being processed simultaneously and disseminated to massive amounts of servers across the globe operating algorithms written by MIT graduates.  The amount of $’s flying around the world in need of a temporary resting place is substantial.  And at the moment, the sheer volumes bring opportunities some will say come every 4 years as the battle for political control in the U.S. continues in a perpetual state of transition.  Having the right mindset has become critical to succeeding. Getting caught up in all the hubris taking place within the current election cycle is important to pay attention to, but don’t fall into that abyss.

binaryeventI don’t have an opinion of the markets that I choose to trade.  For the most part,  I’ve stopped thinking about the necessity to understand what fair value for the underlying should or shouldn’t be.  I think of “cents” instead of the “dollars” and the probability and random variable theory as measured by volatility.

As I’ve previously discussed, anticipating versus participating becomes heavily favored towards participating.   Opportunities are abundant across a wide variety of tradeable markets and are likely to remain in their various forms of “transition” through the balance of 2016.  It isn’t easy to just step into a market that you haven’t traded before based purely on computer generated signals.  But when trading in tune with the volatile price swings, the rewards are extremely encouraging.  While there are “traders” in all of us the concept of “removing the human factor” can’t be total.  The input will always be traceable back to a human being. Therefore, I’ve had to embrace the 21st century and abandon the reality of the trading floor and accept the realities of a virtual trading floor, which is, for the most part anonymous.

I am resolved in accepting the direction that my trading has taken  by shifting from primarily trading options to primarily trading futures.  Since I’ve kept close tabs on the “economic pecking order” and with, interest rates sitting at the top from which everything else flows into and out of,  I’ve been able to get comfortable trading futures.   Currently in “pecking order” this includes futures on bonds, US$/EUR, (6E), precious metals, and stock indices.  I’m looking to re-engage trading within the forex markets as well.

The discussion will continue —

gold$Gold has come back into play over the past week or so as global markets move in tandem with the US $ against the Euro and the Yen. With volatility getting kicked up several notches the opportunities for “runners” of 20 to 50 ticks is occurring with more regularity.  I would anticipate that this will remain the case as the US Dollar is pulled into the global transitions happening within China, Japan, and the European Union.

Check out the chart for today’s trades and discussion.

2016-05-04_14-33-34_Gold

Markets in Transition – Crude Oil

As I began my last post I continue to understand the trading mantra, “I don’t care.”  I do care as to whether the shift in trend is towards buying or selling, but I don’t care about the why or what or where.  This, for the most part, allows me to concentrate on the momentum. The strength of the momentum determines the trend, whether that be on an hourly basis or a tick basis.  When you consider momentum on an hourly or daily basis it becomes more attached to a “binary event.”

Binary Events come in various sizes with regard to “strength” and “intensity”.  Tsunami’s are predicted according to the strength and intensity of an earthquake.  The stronger the quake the greater probability for a larger,  more intense tsunami in the form of a massive wall of water carrying literally tons of momentum.  As it rolls over land it obliterates everything in its path.  Weekly reports on crude can and often do provide many opportunities to trade once the violent knee jerk motion subsides and I would not consider some of them to be major in strength or intensity.  However, the further the “quake” goes up the chain towards reaching – foreign currency reserves – namely the U.S. dollar the resulting tsunami will roll across many commodities and sectors.

binaryeventHere’s the caveat, the canary in the coal mine, the domino that kicks off the race to the exits in all it’s forms, being either from the long side or short side.  China is expected to report that its total FX reserves declined $3.2125 trillion from $3.3 trillion.  A drop of approximately $118 billion.  Which the world needs to see in order to keep the “status quo” or a continuance of the quietly higher massive December 2015 outflow of $108 billion.

So, a reported number that would be below $118 billion or substantially below for January 2016 outflows would kickstart in mass  a short squeeze across the board in most commodity and materials linked sectors.

Here’s what BofA strategist Claudio Piron is expecting – a far smaller outflow.

“We forecast China FX reserve changes and estimate a USD37.5bn fall in January – (USD29.1bn decline adjusting for a negative FX valuation effect). Note that the standard error of the forecast is large at USD24.5bn, which would give us a downside of USD84.5bn fall. We caution that this is guidance and we attempt to be as transparent as possible so investors can gauge the odds in what is a key release for the markets. Note too this is based on onshore CNY FX volumes and our estimate maybe biased down as there are no real time volumes for offshore CNH.”

 

Futures Traders Should Participate Not Anticipate– the current volatility should remain high in that the markets may be bracing or be subject to a larger “trend change” from short to long – ala a massive short squeeze.  Should that be the case – do your best not to trade with emotions and let your signal generator do its work.  A larger “player” short squeeze should switch the “runners” to the upside.  Protect yourself against the urge to succumb to “counter trend” trading.  You don’t want to be missing out on all the fun so participate instead of attempting to anticipate the next turn in the other direction.  Which, by the way, is likely to be much shallower than you think because those needing to cover shorts will create an avalanche of demand as the various derivative traders get involved.  It will be best to keep focused on the trading mantra –  “I don’t care” about the “who, what, when, or wheres.”

Check out the chart below for a snippet of Friday’s trade in Crude – “CL”  I trade using a tick chart and with prices moving all over the map to squeeze together the day would be to miss the trees in favor of the forest.  The chart included is the time I traded, which is 6 to 8 AM PST.  The balance of Friday’s session reflected a quickly changing market as it appeared several larger traders were “somewhat” squaring positions or just plain out taking sides.

2016-02-06_17-22-53_CRUDE

The gross ticks from the indicator “signal to signal” performance was +123 ticks.  Net numbers depend on your commission rate and “slippage.”  Deducting 25 ticks as “cost” would put the net ticks at +98 ticks or $980 per contract trading the front month – in two hours.

Sunday brings the perfect front for US retail traders – The 50th Super Bowl.  China will report their FX reserve numbers during the game — Globex opens at 6 PM EST – 3 PM PST – Do you know where your position is?

 

 

 

 

 

Happy New Year…Are We There Yet?

The first trading day of 2016 produced an awesome volatile day with many “decoupling’s” taking place.  The finish of one year and the start of the new year often produce numerous “decouplings” as money begins to shift strategy.  China got things going coming into Monday morning with the major equity exchanges shutting down after dropping 7% in 7 minutes.  Being a trader, I live for volatile days. I also freely admit that I need to be careful of what I ask for.  Monday’s markets were a solid case in point.  Major moves across the board complete with “decouplings.”  It became important to not “multi-task” and attempt to trade too many markets.  Even with a large pile of “fun chips”,  it can become frustrating and costly.

fainting_trader_China_2016Word to the wise: please accept and embrace that we used to have the capacity to trade from morning till night, on little or no sleep and trade 100’s of contracts in multiple markets and classes. — Accept that in a given trading today,  there are many strategies firing orders in and out of the markets. News travels at the speed of light as do most trading platforms and as is often the case, there are way too many opportunities to trade.  The added caveat is that all are not going in the same direction at the same time and support/resistance is being reduced to liquid magma flowing  up and downhill as volatility ramps everything up a notch.  The swings can be both joyful and frustrating when “normal” highly correlated  markets “decouple” as the fear factor is thrown into the ring.  This was the case on Sunday afternoon into Monday morning as new years trading started with China kicking a huge, huge can down the Great Wall that rolled around the globe in seconds.

In the world of algorithmic trading, attempting to electronically trade in most of the futures markets using different algorithms will become a daunting task that will sour your spirit if you’re not careful.  Narrowing your focus to two maybe three of your favored futures will allow you to keep tabs on the ability of your trading strategy to actually fire actionable signals properly.

High-resolution 3d rendered binary tunnel for technology backgrounds

Being that, there are numerous strategies trading everything under the sun and that, the desire to trade everything tends to suffer greatly from the ability to actually monitor multiple markets and adjust strategy in line with the larger move(s).  Periods of indecision often produce “choppy” or range bound trading.  Algorithms fire constantly and when a large group either pauses or stops within a particular strategy it creates a vacuum of sorts.  The market will trade in a much tighter range but continue to fire buy and sell signals that meet the strategy guidelines but end up being stopped and reversed for a quick string of losses.  Adjusting strategy to smooth out signals is important and I personally find it much easier to keep that control in line when I apply it to a maximum of three markets on extreme volatile days.

Monday was such a day.

Are We There Yet?

To get back to the question asked in the title of today’s post, the simple answer is no – not likely.  More importantly, though, I believe it remains important to trade each day without an opinion as to what the “fair value” is or should be.  I leave that up to someone else to figure out and trade on.  I do, though, keep track of the weekly and monthly charts and keep an ongoing Elliott Wave count for the S&P 500, the DJIA, the NASDAQ, the Dollar/Euro, Crude Oil, Gold, and Silver.  Over the next week or so I will be updating the “counts” and how that relates all the way down to tick charts.

In the coming week I’ll take a look at Crude Oil.

crude_CL

Logical Market Update: From That to This & This…

 From that to this & this…

For most of this week the best trading has taken place within the first couple of hours of U.S. trading.  But it appears that once lunchtime rolls through the East and Central time zones volume does a vanishing act.  Which often leaves computers with nothing to do but switch over to selling volatility, which often leads to a resumption of the larger trend as volume returns for the last 10 minutes of trading.  A period of time between 10 minutes prior to 15 minutes after the equities markets “close” that is reserved for price marking. 

The bulls had a tough time making their case on Friday, even with an options expiration “pinning” got skewed with the indexes moving lower.  Russell 2000 traders saw fit to jump in strong this morning but quickly lost steam as the selling opportunities out weighed the buying opportunities.  Bonds, gold and silver did manage to hold higher levels as expected.  The Euro did not take its cue from steady to lower U.S. bond yields with the Dollar again gaining.  Here again, though, the bulk of the move took place during the European session leaving U.S. trade locked in a tight intraday range.  A stronger take away is that the Euro decline may be back underway barring any disruptions to the cross rates.

 

Next week is likely to kick off with some stronger weakness.  Current expectations favor additional downside as the markets correct and consolidate.  The line(s) in the sand lie well below current levels.  While I’m not looking for the mother of all corrections it may feel that way on an intraday basis.  The Elliott Wave patterns continue to favor a sequence of corrections with higher lows followed by rallies to higher highs still being in force.

 

Statistically and cyclically, September and October tend to be down months.  In fact, the most severe downside damage has taken place on a Friday or Monday in September and October and that would include the “crashes” of 1929, 1987, 2001 (Internet Bubble Burst), 2007 (Housing and RMBS), 2008 (Global Financial Meltdown).  Also taken into consideration were the “Flash Crashes.”  All in all during these periods the markets have corrected down.   Volatility has increased substantially; volumes have increased substantially as prices move with a greater velocity, and the move is felt across the equities, treasuries, precious metals, forex, and commodity markets all moving in tandem with regards to direction.

 

As a near-term and intraday trader the move I’m expecting also statistically carries a much higher probability of larger profits as prices swing in both directions.  This type of corrective period does not necessarily get contributed to anything that resembles reality – the larger decline that will be properly tied has yet to be realized.  In fact when it does happen most won’t acknowledge it until it is more than 50% complete.

 

What I’m looking for should be considered as more of a mini version – a practice session played out with real money.

 

I came across a site with some great pics of trading floors of old.  So as an old market maker (San Francisco, London, Amsterdam, and Frankfurt) and in fond remembrance of the years I stood shoulder to shoulder in numerous trading pits I thought it appropriate to share  —

 

Trading has gone from this:

tradingpit20_30YRPIT

 

 And this:

bonds89

 

To this:

high-frequency-trading-NYSE

 

And this:

high-frequency-trading

Which has produced this:

 

gordian_knot

 

 

A “Gordian Knot” an often used metaphor for an intractable problem, such as disentangling the impossible knot by means of cheating or “thinking outside the box”, which is also known as “cutting the Gordian Knot.”

 

 

Using the Hawk Micro Scalper, Falcon Swing Trader, and the Eagle Trend Trader within the equities markets can produce strong results.  Trading equity options can be used to add “beta” to an existing trade or as “the” trading vehicle.   Be sure to check out Part One  – “Options Basics and Understanding Theta is Your Friend” of a seven part series I’ve written on “Trading Options Using the Diversified Trading System” by clicking here.

 

Indicator Warehouse

 

Indicator Warehouse has in my opinion the best platforms available covering a wide range of traders from novice to expert.

 

The Diversified Trading System from Indicator Warehouse offers cost effective products that allow a trader to enter into the “chaos” and trade more effectively.  

 

Trade Manager from Indicator Warehouse automatically calculates the correct amount of contracts or shares based on your account size or market volatility.  Automated stop-loss management and position sizing eliminates most of the problems most individual traders have.  Day trading and position trading both require (actually demand) good risk management.  Trade Manager does the job across the board and is an essential trading tool that ensures that you take the maximum profit from all your trades. 

 

A newer member of the money management tools available from Indicator Warehouse is the Profit Finder – System Back Tester When implemented it allows the user to:

  • Immediately know the impact of parameter changes. 
  • Automatically reads all of your DTS entries and exits
  • Calculates the profit/loss of each trade
  • Performs a wide number of essential intelligence boosting calculations instantly
  • Provides solid details about the effectiveness of your trading strategy/ methodology/ indicators

 

The last two points above are valuable tools to use.  It will show you where some “tweaking” is needed to improve results through the back testing feature. 

 

My point on money rotation and sector rotation is similar to that on parabolic moves that they happen with frequency within many time frames.  As traders these types of moves can be a bonus for day trading or position trading so again don’t get caught up in the “what’s the catch.”    Realizing a rotation is occurring within a stock you trade or a sector is a great source of stocks to plug into the Diversified Trading System.  Allowing DTS to cleanly and beautifully capture the moves though any or all three DTS trading platforms.  Our goal remains to assist traders to make greater profits during all types of markets.  Sector and money rotation is another tool.

 

The Diversified Trading System used together with Trade Manager should continue to produce numerous trading signals in the DJIA, YM (mini), S&P 500, ES (mini), RUT, TF (Russell 2000 mini), AAPL, AMZN, GOOG, NFLX, and LNKD, GS, and Tesla Motors (TSLA).    In the near future I will be adding options strategies to the trading list. 

 

Here is an updated (7/31/2013) list of the markets where I have found that DTS (all three birds) are producing numerous signals.  Continue to bear in mind that there are days when trading opportunities are not as plentiful.  These are days when not trading is likely more profitable than attempting to “force” a trade”:

 

  • DJIA future (e-mini available) – highly recommended for experienced traders
  • S&P-500 future (e-mini available) – highly recommended large intraday moves.
  • Russell 2000 future (e-mini available) – highly recommended can lead in either direction.
  • NASDAQ 100 future (e-mini available) very highly recommended and dominated by AAPL, AMZN, NFLX, GOOG, and TSLA
  • US$/Euro futures (e-mini available) – very highly recommended – easy to trade afterhours as well.
  • V (Visa) – stock and options – recommended – large swings in both direction likely
  • MA (MasterCard) stock and options – recommended – $600 stock – large swings likely
  • GS (Goldman Sachs) – good two way volume –
  • AAPL (Apple Computer) – highly recommended – Options trading as well
  • GOOG (Google) – highly recommended
  • LNKD (LinkedIn) – solid intraday range
  • NFLX (Netflix) – solid intraday range
  • TSLA (Tesla Motors) – highly recommended 
  • 30-yr Treasury Bond future – highly recommended
  • 10-yr Treasury Note future – solid two way trade
  • TLT (Treasury Bond Long ETF) – very active
  • TBT (Treasury Bond Short ETF) – very active (moves inversely to TLT)
  • Gold (futures and ETF – GLD) very active – not suitable for all traders
  • Silver (futures and ETF – SLV) – very active – not suitable for all traders
  • EURO FX (futures, mini and micro contracts available) very active suitable for all account sizes

 

 

 panultimateHFTsetup

 

 

 

Have a Great Weekend! —

 

Logical Market Update: Day Two – Bulls Attempt to Stage a Comeback

Day Two and the Bulls Attempt to Stage a Comeback – Gold Stocks Back on the Radar – Time to Begin Buying?

The markets followed through on Tuesday’s selling finishing what I’m considering the initial (first) leg down.  Interestingly though, when the bulls moved in to stage their comeback, the volatility indexes were first on the firing line.  By the close a decent bounce higher was in place.  I’m not so sure the markets are convinced though that the drop off of recent highs was just an apparition, with the bulk of the closing madness being on the sell side.  The initial leg down remains in progress and while there may be additional buying tomorrow with the potential for an up day not off the table.  Even the last minute marking battle favored the bears leaving the bulls to push the futures and ETFs after the close.  What a joy it is to know that the exchanges still have a soft spot for their larger players giving them an extra 15 minutes to hedge – yeah right!  Current parameters remain valid for the broader indexes.  Tesla, Green Mountain Coffee Roasters, and Groupon reported earnings after the close.  TSLA jumped $18, GMCR fell $6 and GPRN popped up $2.50.  The saying “Only the Good Die Young” is somehow now more believable.   

 

Bonds put in a solid rally today and managed to hold it through most of the day’s gyrations in the equity and forex markets.  Expectations remain in place for a continued recovery rally to unfold before the next leg down takes over.  Again, any clues to direction will likely begin in the 10-year note.  The Dollar got caught between a rock and hard place as the British Pound was pounded into submission after comments from the Bank of England.  The rally in the Euro was again contained to the first hour of U.S. trade with most of the action being within the European sessions.  Most of the U.S. trade was held to a slightly expanded range of 20 ticks. 

 

 

Gold and gold stocks are back on my active radar after the latest bashing brought the gold stocks to gold ratio to a long-term low, further bashing would likely lead to this ratio testing the 2001 lows.  The damage is deep across the board.  Since January 2013 gold has dropped from $1700 to $1180 and gold stocks have fallen more than 50% and that would be amongst what are considered to be the titans within the mining sectors.  Weaker companies were cut off at the knees loosing up to 75%. 

 

The AMEX Gold BUGS (Basket of Unhedged Gold Stocks) Index is a modified equal dollar weighted index.  The component companies are involved in gold mining.  HUI is one of the most watched indices and retains titan status next to the XAU index.  The unhedged part of the index name is the basis for the index.  Its component companies do not hedge their gold production beyond 1.5 years.  The table below lists the current company components and their weighting.   

 

Component Companies (HUI)    
Company name Symbol Weighting 
Goldcorp Inc NYSE: GG

16.20%

Barrick Gold NYSE: ABX

15.37%

Newmont Mining NYSE: NEM

10.88%

Harmony Gold Mining Adr NYSE: HMY

5.21%

Coeur d’Alene Mines NYSE: CDE

5.11%

Yamana Gold NYSE: AUY

5.00%

Anglogold Ashanti Ltd Ads NYSE: AU

4.88%

Gold Fields Ltd Adr NYSE: GFI

4.80%

Randgold Resources Ads NASDAQ: GOLD

4.71%

Iamgoldcorp NYSE: IAG

4.43%

Eldorado Gold Corp NYSE: EGO

4.34%

Hecla Mining NYSE: HL

4.14%

Comp de Minas Buenaventura Ads NYSE: BVN

4.08%

New Gold Inc NYSE MKT: NGD

3.90%

Kinross Gold NYSE: KGC

3.85%

Agnico Eagle Mines NYSE: AEM

3.11%

 

 

 

 

 

 

 

 

 

 

The HUI Index has been hammered, as the component companies have been sold in step with the decline in physical gold.  Off of the September 2012 high the HUI has dropped 323 points (60%).   Currently 2013 has not seen any favoritism towards the HUI.  But that may be about ready to change.

 

The weekly chart below details the decline beginning off of the September 2011 highs.  The pattern in place, which encompasses the rally off of the 206.66 June 2013 low to the July high at 263, took a lot of momentum to achieve less than 60 points.  The sharp decline in the last two weeks may be the beginning of an exhaustion decline, which could set the stage for a more sustained and dynamic rally.  The stochastic oscillator has again slipped into oversold readings, but has not shown any signs of turning yet.  Currently the HUI is likely to drop to a new low under 206.66 before the next sustained rally phase takes over. 

 HUI_WEEKLY_AUGUST_07_2013-08-07-TOS_CHARTS

An additional important measure of value for gold stocks is the HUI – gold ratio.  The HUI-gold ratio is an expression, which compares the HUI index to the price of gold.  The ratio is calculated by dividing the value of the HUI Index by the price of gold.  Yes, it really is that simple – and here’s the kicker – when this ratio is very high, it correlates to gold stocks being expensive in relationship to gold.  Conversely when the ratio is very low, it correlates to gold stocks being relatively cheap relative to the price of gold.  The HUI-gold ratio bottomed in 2001 reaching a top in 2004. Progressively deeper major lows have occurred in late 2005, late 2008 and June 2013 as the bear market likely moves into its final stages.

 

Bollinger Bandsmeasure the “high” or “low” of the price relative to previous trades and are considered a volatility indicator.  Therefore by definition prices are high at the upper band and low at the lower band.  This definition can help in pattern recognition and when combined with additional indicators help to arrive at decisions as to direction or trend. 

 

The chart below keeps in perspective just how far the HUI has dropped and is likely in the finishing stages before a trend change takes place. 

HUI_WEEKLY_BOLLINGERBANDS_2013-08-07-TOS_CHARTS

It is time to move Gold, the HUI Index, and gold stocks back on the radar.  Opportunities are already presenting themselves and traders that already trade gold via one of the DTS “birds” should find solid profitable opportunities as the bear market finishes and the bull takes the reins.  I will be adding to our list below as this sector jumps back. 

 

 

Indicator Warehouse

 

Indicator Warehouse has in my opinion the best platforms available covering a wide range of traders from novice to expert.

 

The Diversified Trading System from Indicator Warehouse offers cost effective products that allow a trader to enter into the “chaos” and trade more effectively.  

 

Trade Manager from Indicator Warehouse automatically calculates the correct amount of contracts or shares based on your account size or market volatility.  Automated stop-loss management and position sizing eliminates most of the problems most individual traders have.  Day trading and position trading both require (actually demand) good risk management.  Trade Manager does the job across the board and is an essential trading tool that ensures that you take the maximum profit from all your trades. 

 

A newer member of the money management tools available from Indicator Warehouse is the Profit Finder – System Back Tester When implemented it allows the user to:

  • Immediately know the impact of parameter changes. 
  • Automatically reads all of your DTS entries and exits
  • Calculates the profit/loss of each trade
  • Performs a wide number of essential intelligence boosting calculations instantly
  • Provides solid details about the effectiveness of your trading strategy/ methodology/ indicators

 

The last two points above are valuable tools to use.  It will show you where some “tweaking” is needed to improve results through the back testing feature. 

 

My point on money rotation and sector rotation is similar to that on parabolic moves that they happen with frequency within many time frames.  As traders these types of moves can be a bonus for day trading or position trading so again don’t get caught up in the “what’s the catch.”    Realizing a rotation is occurring within a stock you trade or a sector is a great source of stocks to plug into the Diversified Trading System.  Allowing DTS to cleanly and beautifully capture the moves though any or all three DTS trading platforms.  Our goal remains to assist traders to make greater profits during all types of markets.  Sector and money rotation is another tool.

 

The Diversified Trading System used together with Trade Manager should continue to produce numerous trading signals in the DJIA, YM (mini), S&P 500, ES (mini), RUT, TF (Russell 2000 mini), AAPL, AMZN, GOOG, NFLX, and LNKD, GS, and Tesla Motors (TSLA).    In the near future I will be adding options strategies to the trading list. 

 

Here is an updated (7/31/2013) list of the markets where I have found that DTS (all three birds) are producing numerous signals.  Continue to bear in mind that there are days when trading opportunities are not as plentiful.  These are days when not trading is likely more profitable than attempting to “force” a trade”:

 

  • DJIA future (e-mini available) – highly recommended for experienced traders
  • S&P-500 future (e-mini available) – highly recommended large intraday moves.
  • Russell 2000 future (e-mini available) – highly recommended can lead in either direction.
  • NASDAQ 100 future (e-mini available) very highly recommended and dominated by AAPL, AMZN, NFLX, GOOG, and TSLA
  • US$/Euro futures (e-mini available) – very highly recommended – easy to trade afterhours as well.
  • V (Visa) – stock and options – recommended – large swings in both direction likely
  • MA (MasterCard) stock and options – recommended – $600 stock – large swings likely
  • GS (Goldman Sachs) – good two way volume –
  • AAPL (Apple Computer) – highly recommended – Options trading as well
  • GOOG (Google) – highly recommended
  • LNKD (LinkedIn) – solid intraday range
  • NFLX (Netflix) – solid intraday range
  • TSLA (Tesla Motors) – highly recommended 
  • 30-yr Treasury Bond future – highly recommended
  • 10-yr Treasury Note future – solid two way trade
  • TLT (Treasury Bond Long ETF) – very active
  • TBT (Treasury Bond Short ETF) – very active (moves inversely to TLT)
  • Gold (futures and ETF – GLD) very active – not suitable for all traders
  • Silver (futures and ETF – SLV) – very active – not suitable for all traders
  • EURO FX (futures, mini and micro contracts available) very active suitable for all account sizes