Vialoux's Tech Talk: July 8, 2014

by Don Vialoux, Timing the Market
Interesting Charts

U.S. equity markets are experiencing sector rotation. Notably weaker relative to the S&P 500 Index recently has been economically sensitive sector indices and their related ETFs

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VIX spiked yesterday. ā€˜Tis the season!

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Natural Gas broke key support levels yesterday.

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Weekly Horizons/Tech Talk Seasonal/Technical Sector Review

Following is a link:

http://www.horizonsetfs.com/campaigns/TechnicalReport/index.html

Adrienne Toghraieā€™s ā€œTraderā€™s Coachā€ Column

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Making Choices for Traders

By Adrienne Toghraie, Traderā€™s Success Coach

www.TradingOnTarget.com

When confronted with a choice, how do you decide? Are the choices you make in life in general different from the choices you make in trading? It has been my experience that decisions in life that involve a perception of a possible loss, being wrong or making a mistake will very often take the same approach as the decisions you make in trading.

Stuck

Jared was a ā€œwant to beā€ trader for over twenty years. He was obsessed about making trading his profession. It was lucky for him that his other business did well enough to support his life. It was very clear to Jared that he had an issue of being afraid to lose and did not want to be wrong about his choices, but the same thing that kept him from following his rules, kept him from making a decision about overcoming these issues.

A trader friend, who earned a great deal of money as a result of listening to Jaredā€™s advice, suggested that he take my Traderā€™s Evaluation. The evaluation highlighted everything that Jared already knew and other sabotage issues that he was not aware of. I knew that Jared had what it took to be a great trader, but was he going to excuse his way out of making the right choice, or continue on the same path?

I have listened to many traders who I believe could be exceptional traders but because they did not have the ability to pull the trigger in their trading, they could not pull the trigger on doing what it took to overcome those issues.

Here are some of the excuses traders give themselves and me and what I am thinking when they do:

Ā· I donā€™t have the time and or money

(Then you shouldnā€™t be in trading)

Ā· I will do it but not now, but someday

(I donā€™t know of a day of the week that is called ā€˜somedayā€™)

Ā· My wife doesnā€™t want me to spend the money

(Itā€™s your responsibility to gain her support)

Ā· I need to schedule it around my vacation

(This is a business decision, not a vacation decision)

Ā· After I become a profitable trader, Iā€™ll then come to you to be a Master Trader

(If you have the ability to do it yourself, then why have you not done it already?)

Ā· Iā€™ve read many books on the psychology of trading, Iā€™ll read them first

(Youā€™ve not read them now, what makes you think that you have the motivation to carry through with this plan?)

Ā· Itā€™s better for my taxes that I do it next year

(And whatā€™ll you say next year?)

Ā· Youā€™re my last hope, if it doesnā€™t work with you, then Iā€™ll have to give up trading (You already have)

Weighing your choices

When you weigh your choice to get help versus not getting help you should see the obvious decision:

1. Go back to your last year of trading and analyze what you believe you would have earned if you had followed your rules.

2. Ask yourself how many hours you put into trading.

3. How much is your hourly rate of return?

4. How much would have been your hourly rate of return if you had followed your rules?

5. What has not taking care of your psychological issues cost you in time and money?

6. What excuses do you have that have more value then earning what you are worth in trading?

Conclusion

The choices that a person makes in the process of becoming a professional trader will make the difference in how successful he will become. It is a good feeling when a trader can look back and know that he has made the best choices at every step of the process.

Technical Action in Individual Equities Yesterday

Technical action was quiet. Four S&P 500 stocks broke resistance (AAPL, FFIV, AMT and XL) and three stocks broke support (PNR, CNX, SWN). Feature stock on the upside was Apple

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Among TSX 60 stocks, Agrium broke support

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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. To login, simply go to http://www.equityclock.com/charts/

Following is an example:

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Disclaimer: Comments, charts and opinions offered in this report by www.timingthemarket.ca and www.equityclock.com 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 with Horizons ETFs Management (Canada) Inc. All of the views expressed herein are the personal views of the authors and are not necessarily the views of Horizons ETFs Management (Canada) Inc., although any of the recommendations found herein may be reflected in positions or transactions in the various client portfolios managed by Horizons ETFs Management (Canada) Inc.

Individual equities mentioned in StockTwits are not held personally or in HAC.

Horizons Seasonal Rotation ETF HAC July 7th 2014

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Copyright Ā© Don Vialoux, Jon Vialoux, Brooke Thackray

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