michaelstuarts

Thanks for your reply //Michael

I wasn't sure where to post this.................... How do day traders handle their wash sales and accounting issues ? I am aware of the 30 day rule before and after the sale of the security. If one purchases a security and is sold at a loss and another is purchased within the 30 days of the purchase of the first security a wash sale is triggered, the loss is disallowed and the disallowed loss is added to the cost basis of the new security just purchased. If one keeps buying and selling within 30 day window wash sales are generated and added to the cost basis of the subsequent security purchases . Now what happens, you realize finally your on the wrong side of the market and go short and buy to cover. and continue taking short positions on the same security. After a series of long positions, assume that the first short position is a loss, Is it the buy to cover that triggers the wash sale ? because it is considered a purchase of the security within the 30 day window ? When going from a series of long positions to a series of short positions on the same security, When do wash sales start triggering on series of the short side trades:confused: Thanks, //Michael

The Dow is above 1300 Many stock charts (e.g. AMZN) are giving mixed signals. Some stocks have shown exhaustion and overbought indications before the DOW reaching an all-time high. Now many stocks appear to have breakaway gaps and appear to to have new life to to them. I don't like to follow the crowd after news. Is this a breakaway gap ? Will this gap close in the next few weeks ? or Is this a new long-term trend ? Will the DOW keep making new highs or will the bubble burst ? Will the investors holding this security be in for a surprise ? Housing market is down and the dollar is weak, what other economic indicators should I consider ? Where can I learn more about gaps and gap plays ? Thank you, //Michael Several stocks have this kind of pattern now.

Hi. I read posting instructions ......... I hope I did this correctly with the uploading and posting;not that savvy yet with files. (please give me pointers for better chart postings next time) Can someone help clarify the price-volume action at locations A,B, and C. I don't have the hang of this yet. At A, who is selling and who is buying. The big green candle at the open must be from the buy orders from the night before; price starts to decline after the opening ; is this professional selling or short selling ? There is a rally at B. ( I should have posted the tick data as well ) Is this professional buying ? After the rally at B price declines to S1 goes to pivot point to form "W" and then goes to phase C rally; whose buying here on increased volume ? Can we tell what the roles of the market makers, the specialist, the institutions and the public are ? Could VSA be of some help here as well ? Thanks, //Michael

Greetings............. while we are on the subject of pivots......... Is it possible to use pivots for longer time frames; over days or weeks. Can I use a monthly bar to calculate the pivots for the following days and weeks of the next month ? Do I use a weekly bar for the following days for the following week ? How would pivots be used for short term (days) or even weeks. I'm not sure how things would scale for different time periods. One day trading day in the stock market contains approximately 78 five minute bars and the pivots for this day are calculated from the previous day with a ratio of 78:1. thanks, //michael

greetings, Can someone explain what it means to "fade" or fading and how to use the term properly. I think this one would be good to add it to the "trading terms" thread with some good examples. //michael