What Makes Stock Prices Move The Most?

THE WEEK

As predicted this was a relatively calm week with the Market closed on Thursday for Thanksgiving and on Friday with limited hours.  Here a picture of the SPY.  In the second` picture notice the drop in volume over the past week and a half.  The purple line is a measurement of the 50-day average volume.  Daily volume was way below the average.  It is volume that pushes prices around more than any other factor.  We had one of our most stress-free trading weeks in a very long time.

LOOKING AHEAD

I made the comment in one of our daily Quantum trading sessions that I felt like Yoda from “Star Wars”.  

"You must feel the force around you. Here. Between you, me, the tree,
the rock, everywhere, yes even between the land and the ship.”

As a student of the Market, I have been feeling the shift in the forces for the past several weeks.  Can you train yourself to feel those same force shifts?   I believe so.  Here is just one example I have been seeing.  This is a picture of the VIX which measure traders’ fears and greed.  It is an inverse measurement.  When the level is high, fears are running rampant.  Conversely when the level is low fears has abated and traders are becoming more confident.  The pattern seen is a slow slide downward without abrupt shifts of the past several years.  My conclusion is we are sliding into a relatively calm Market where making profits will be easier to come by.

HOW AM I DOING?

I had a good week although I was pre-occupied with Thanksgiving and family.  Still far from my usual returns but I am confident I can turn things around.  I have had several positions that just beat me up off-setting the gains on my of most of my trading.  It happens.  The key to future success is not to let it bring you down.

This Week’s DEEP DIVE is a fun one.

We are going to learn about and practice seeing major Market shifts

My goal has always been that you become a thinking trader. 

Now I am shifting that image to you becoming Master Yoda of Trading

May the Force Be with YOU!