If you are a stock trader such as myself, and most of the readers of this blog you may have noticed the pattern that occurs very often since August 27, 2010. This was when the Federal Reserve Bank head honcho Ben Bernanke announced his quantitative easing program. Most of you know this is where the Federal Reserve Bank will buy U.S. Treasuries nearly everyday. Since that time the stock market has rarely sold off very much and an uptrend remains intact. The major stock indexes such as the SPDR S&P 500 Index(NYSE:SPY), and the SPDR Dow Jones Industrial Average will usually make an early first half of the trading session low and then usually stage a sharp bounce. This happened again today as it often does and the InTheMoneyStocks traders were able to take advantage of the low.
Forget the news as it is just noise. Forget the talking heads in the media as that is just opinion. The truth of the matter is to simply learn how to read the charts. The charts will tell a trader everything he or she needs to know. Remember, in trading as in life, nothing is 100 percent. Trading is simply about putting the odds in the favor of the trader at the right time. Learn to read the charts.
Nicholas Santiago
InTheMoneyStocks.com
