Chuck Whitman

Commercials Recap By, Chuck Whitman

  For a quick recap on Commercials, review the summary points below:     Every successful product exists because it has a legitimate business purpose for the commercial firms that utilize it. Without the commercial firm’s willingness to use the product, it will fail. Commercials are the primary influence in any market that we trade. Commercials are the participant for whom the market primarily exists. Each market usually has a commercial user who is a natural long and a commercial user who is a natural short. The easy way to [...]

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Timely Analysis of Market Moving Events By, Mark Boucher and Chuck Whitman of REED$TRADER

  This past week was full of major market-moving events: the election, Pfizer’s vaccine announcement, Payrolls, and FOMC. We thought it would be helpful to share our recent market environment context update from Mark Boucher after the close on Monday, November 9 to help you understand the current environment. We thought we might also share some high-quality stock opportunities that we see right now. Market Environment Context News of a 90% effective coronavirus vaccine sent markets into a massive rotation away from lockdown and work-at-home beneficiaries towards cyclical recovery plays

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Understanding the Roles of Market Participants By, Chuck Whitman and Van Tharp

Editors note: Van and Chuck recently had a lively conversation about market structure. This article is a transcript of sections of this conversation. Chuck: Every market we trade has a legitimate business purpose and commercial firms legitimately use that market to manage their business. Without that, the market does not work. I believe that traders benefit by understanding this concept – that markets play an important business purpose. When you ask a lot of people about trading, they’ll say trading is a form of gambling. Look at the definition of

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Same Trades, Different Views Improve Your Results with Positive Reversion by, Chuck Whitman of Reed$Trader

    Rarely do I see any discussion in the trading community about the impact of reversion on the profitability of trades. Many new traders are completely unaware of this concept and its impact on their trading.   Value, Price, and Reversion I spend a great deal of time educating my student traders about the major market participants: commercials, large speculators, small speculators and market makers. I want students to understand the different behaviors of different participants. Learning about these different behaviors often opens the eyes of my students helping

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Is this A Catchable Rally or A Bear Trap? by, Chuck Whitman & Mark Boucher

  Using market internals* has a great advantage in that they force you to focus on what investors are doing rather than on what they are saying. Our short-term trigger point of the 70% down-volume on February 21 came just two days after the all-time highs on the S&P. In the following days, our Bear Market signal happened in the midst of five distribution days. Since that first warning day, the stock market had eight 90% down-days and three 80% down-days over the next eighteen trading days for the largest

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Improve Your Market Selection, Improve Your Trading, by Chuck Whitman

Market Selection is typically the least developed area in most traders’ trading plan. Traders (including me) often spend thousands of dollars and hundreds of hours learning how to improve their trading methods in search for the Holy Grail! Just find that one system or method that will allow you to always be right and you have found your path to riches!! We have all seen it if not in ourselves, then at least in others ;). My own experiences taught me to pursue a very different path. Let me highlight

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