Mastering the Stock Market

Chapter 1: Stock Indexes and Sectors 1

Stock-Picking Quandary 4

Exchange-Traded Funds 6

The Options Market 14

Why Use Seasonal Analysis? 18

Chapter 2: Seasonal analysis 21

Pondering the Perks 25

Not All ETFs Are Measured Equally 30

Conclusion 58

Chapter 3: Sentiment analysis 59

The AAII Sentiment Survey 60

COT Data 61

Insider Trading Information 62

COT Data Components 63

Can Traders Benefi t and Make Money from This Information? 64

How Can This Information Possibly Be of Any Help to Us? 68

Compelling Evidence 75

Conclusion: COT Option Strategy 76

Chapter 4: Comparative relative Strength 79

What Is It Used For?

Creating the Charts 80

Spread Terminology 87

Automating Signals 95

Comparing Market Performance 99

Conclusion 102

Chapter 5: Breadth Studies 105

Trend-Line Analysis 107

Bearish Divergence Signals 114

Bullish Convergence Signals 119

Support and Resistance 121

Indicators and Moving Averages 125

Conclusion 135

Chapter 6: Volume Analysis 137

Hindsight Is 20/20 145

Current Event Analysis 148

Individual Stocks 149

Bearish Divergence 152

Bullish Convergence 154

Selling Climax 155

Exhaustion Tops 156

Trading Patterns 157

Volume and High-Frequency Traders 161

Volume Weighted Average Price 162

Chapter 7: Patterns, Indicators, and Oscillators 165

Candlesticks 166

The Doji 168

Reversal Patterns 169

Continuation Patterns 180

Conclusion: Indicator 101 201

Chapter 8: Scanning for Profits 203

Scanning the Universe

Trade Navigator 204

High- and Low-Close Doji Scans 206

Daily Scan Signals 208

Tradestation 212

Conclusion 227

Chapter 9: Pivot Point Analysis 233

Stock Trader’s Time Frame 238

Person’s Pivots Calculations 248

Fibonacci Combined with Pivot Points 262

Summary 263

Chapter 10: P utting It All Together 265

Position Sizing, Trade Entry Techniques, Risk Management,

Trailing Stops, and Trade Management

Calculating Position Size 267

Profit Targets 269

Stock Replacement Option Strategy 271

Day-Trading Position Sizing 271

Average True Range 272

Twice Baked 275

Order Entry Using PPS 276

Snap-Back Technique 276

Order Types 277

Stop Selection 279

The Exit 281

Expectations 282

Discipline