The economy and stock market are heavily influenced by seasonal factors. For example, a strong holiday buying season tends to be bullish for retail stocks or rising energy costs hurt airline profitability. Awareness of seasonal trends in both the economy and stock market can put you in a better position to profit from sectors and stocks that are likely to outperform the overall market. And technical tools can then be used to confirm emerging trends and time entries into these stocks and sectors. Mastering the Stock Market provides authoritative insights into a method for trading stocks based on seasonal trends, sector analysis, and market timing. Taking a top-down approach, the book explains how seasonal supply/demand forces impact commodities and different sectors of the stock market. After learning how to identify stock market sectors and commodity ETFs that are ripe for a big move, you'll quickly discover how to use technical analysis to gauge the strength of the sector or commodity and then identify the strongest stocks and ETFs to trade. Along the way, you'll also learn how to use the author's own indicators, Persons Pivots, to identify support/resistance areas and pinpoint optimal entry and exit points. Outlines a proven technical approach for trading stocks based on seasonal trends, sector analysis, and market timing Breaks new ground in comparative relative strength, trading volume, breadth indicators, and utilizing pivot analysis in conjunction with options expiration days to identify trading opportunities Written by noted technical analyst John L. Person To successfully trade today's markets you need to use a proven approach and have the discipline to effectively implement it. Mastering the Stock Market has what you need to achieve these goals and capture consistent profits along the way.
Author(s): John L. Person
Publisher: John Wiley & Sons, Inc.
Year: 2013
Language: English
Pages: 292
City: Hoboken, New Jersey
Tags: Stock Market
Mastering the Stock Market
Contents
Foreword
Introduction
Chapter 1 Stock Indexes and Sectors
Stock‐Picking Quandary
Exchange‐Traded Funds
Inverse ETFs
Leveraged ETFs
Inverse Leveraged ETFs
The Options Market
Why Use Seasonal Analysis?
Chapter 2 Seasonal Analysis
Pondering the Perks
Not All ETFs Are Measured Equally
Commodity ETFs
Precious Metals
Commodity Markets
Currencies
Conclusion
Chapter 3 Sentiment Analysis
The AAII Sentiment Survey
COT Data
Insider Trading Information
COT Data Components
Can Traders Benefit and Make Money from This Information?
How Can This Information Possibly Be of Any Help to Us?
Compelling Evidence
Conclusion: COT Option Strategy
Bullish
Bearish
Chapter 4 Comparative Relative Strength
What is it used for?
Creating the Charts
Spread Terminology
Automating Signals
Comparing Market Performance
Conclusion
Chapter 5 Breadth Studies
Trend‐Line Analysis
Bearish Divergence Signals
Bullish Convergence Signals
Support and Resistance
Indicators and Moving Averages
Avoiding Whipsaws
Advance‐Decline Indicators
Arms Index
Conclusion
Chapter 6 Volume Analysis
Hindsight is 20/20
Current Event Analysis
Individual Stocks
Bearish Divergence
Bullish Convergence
Selling Climax
Exhaustion Tops
Trading Patterns
Wedges
Inverted Head‐and‐Shoulders
Time‐of‐Day Patterns
Volume and High‐Frequency Traders
Volume Weighted Average Price
Chapter 7 Patterns, Indicators, and Oscillators
Candlesticks
The Doji
Reversal Patterns
High‐Close Doji (HCD)
Low‐Close Doji (LCD)
Gaps Patterns
Island Gaps
Continuation Patterns
Wedges, Triangles, and Pennants
Bracket Order Strategies
Head‐and‐Shoulders
Inverted Head‐and‐Shoulders
M tops
W Bottoms
Commodity Channel Index (CCI)
Moving Average Convergence‐Divergence (MACD)
Stochastics
Conclusion: Indicator 101
Chapter 8 Scanning for Profits
Scanning the Universe
Trade Navigator
High‐ and Low‐Close Doji Scans
Daily Scan Signals
TradeStation
Conclusion
Chapter 9 Pivot Point Analysis
Stock Trader’s Time Frame
Person’s Pivots Calculations
What About When a Market Is Extremely Bullish or Bearish?
Fibonacci Combined with Pivot Points
Summary
Chapter 10 Putting It All Together : Position Sizing, Trade Entry Techniques, Risk Management, Trailing Stops, and Trade Management
Calculating Position Size
Profit Targets
Stock Replacement Option Strategy
Day Trading Position Sizing
Average True Range
Twice Baked
Order Entry Using PPS
Snap‐Back Technique
Order Types
Stop Selection
The Exit
Expectations
Discipline
About the Author
Index
