Making a guest appearance on BNN television this afternoon at 4.30 eastern time, will be EquityClock’s Jon Vialoux. Be sure to tune in for his views on the market!
Pre-opening Comments for Wednesday March 6th
U.S. equity index futures are higher this morning. S&P 500 futures are up 7 points in pre-opening trade.
Index futures improved slightly following release of the February ADP Employment report. Consensus was a decline to 175,000 from 192,000 in January. Actual was a gain to 198,000. The report also is a predictor of the February employment report to be released on Friday.
Microsoft eased $0.17 to $28.18 after the company was fined $561 million Euros for antitrust violations in Europe.
Bristol Myers is expected to open higher after William Blair initiated coverage with an Outperform rating.
JC Penney fell $0.16 to $414.80 after Citigroup downgraded the stock from Buy to Neutral.
Qualcom eased $0.53 to $67.44 after Goldman Sachs downgraded the stock from Conviction Buy to Buy.
Pembina Pipeline (PPL $30.46) is expected to open higher after RBC Capital upgraded the stock from Sector Perform to Outperform.
Best Buy gained $0.58 to $18.98 after Jefferies upgraded the stock from Hold to Buy.
MasterCard dropped $1.39 to $525.71 after Argus downgraded the stock from Buy to Hold.
Apple added $1.86 to $433.00 despite a downgraded by Berenberg Bank from Buy to Sell. Target was reduced from $800 to $360.
The Dow Jones Industrial Average traded to an all-time high after moving above its 2007 high at
The NASDAQ Composite Index moved to a new high not seen since October 2000.
Three more sectors and their related ETFs broke to new inter-day highs. The Industrial SPDRs closed at an all-time high.
Adrienne Toghraie’s “Trader’s Coach” Column
All Things Are Not Equal
By Adrienne Toghraie, Trader’s Success Coach
Over the many years that I have worked as a trader’s coach, I have heard people tell me that their strategy makes money for other traders, but not for them. I have also heard innumerable times that a trader does not understand how other traders can make so much money in the markets when this kind of success alludes them.
Just because someone else makes money using a strategy does not mean
that you will earn the same profits.
Just because other people make huge amounts of money in the markets
does not mean that you will.
While these statements seem elementary, questions along this line keep coming my way.
Doing everything right, but still not making a profit
A trader by the name of Jim called me the other day and said that he had been trading for over ten years, but still was not making any money. He did admit that for the first two years he was cocky – thinking that he could just make decisions based on fundamentals. He figured that he was a smart guy having advanced his education to the level of having a doctorate in biotechnology. He kept up with three major newspapers per day, so he felt he was up on the trends of the markets.
The next three years Jim studied technical analysis and decided he was going to develop his own strategy. Naturally, he felt that he should be able to come up with a better strategy than anything out there in the markets, since he was such a highly educated man. Everything he tried was never good enough.
Jim was then at the next stage of his development and wanted to purchase a strategy from someone else. It took him two years to find a strategy and a trader he felt he could trust. He based this confidence on attending a seminar where there were graduates of the methodology who were all making great profits. Figuring that he was more intelligent than most of these traders, he believed that he should get even better results.
Jim attended a Webinar that I recently presented and asked me why others can make money from the strategy that he uses and he remains flat. The obvious answer is that he is not interpreting the strategy in the same way, not taking the same amount of risk or not following his own rules.
I happened to be aware of the strategy that Jim was following because I had several clients who were successful in following that strategy. The first problem was that this strategy was a highly discretionary strategy where intuition played a big part in its success. The second issue was that Jim did not take the same amount of risk on the better trades as the other traders. And finally, Jim tweaked the strategy to be able to conform to the hours of the day that he could trade.
Always on the other side of the trade
Another question that comes up frequently is, “Why am I always on the other side of the trade, even when I try to go against what I believe to be the right move?”
This question is difficult to answer, because many times unless you agree with the trader that he is unlucky or has a curse on him, there will be an argument. The fact is that there are only so many things that can be wrong with why a trader loses in the markets.
· The strategy does not fit his style or his resources
· He is not following the rules of that particular strategy
· The strategy has discretionary/intuitive elements that must be developed
· He has not developed a business plan, which has a set of rules for the markets for him to follow
· He has not overcome the psychological barriers that keep him from following his rules
· He is not willing to accept that one of the above issues is a problem for him
It is hard for some traders to imagine that there are many people earning a great deal of money from trading. If trading is not working for you, there is a reason, and if you are not willing to face up to that reason, you will continue to ask why you cannot make money from the markets.
Adrienne’s Free Webinars
Adrienne presents free webinars on the psychology of trading
Special Free Services available through www.equityclock.com
Equityclock.com is offering free access to a data base showing seasonal studies on individual stocks and sectors. The data base holds seasonality studies on over 1000 big and moderate cap securities and indices. Notice that most of the seasonality charts have been updated recently.
To login, simply go to http://www.equityclock.com/charts/
Following is an example:
Energy Sector Seasonal Chart
FP Trading Desk Headline
FP Trading Desk headline reads, “Loonie set for a correction and significant buying opportunity”. Following is a link to the comment:
Disclaimer: Comments and opinions offered in this report at www.timingthemarket.ca are for information only. They should not be considered as advice to purchase or to sell mentioned securities. Data offered in this report is believed to be accurate, but is not guaranteed.
Don and Jon Vialoux are research analysts for Horizons Investment Management Inc. All of the views expressed herein are the personal views of the authors and are not necessarily the views of Horizons Investment Management Inc., although any of the recommendations found herein may be reflected in positions or transactions in the various client portfolios managed by Horizons Investment Management Inc
Horizons Seasonal Rotation ETF HAC March 5th 2013