Market Takes a Breather, But Remains in Uptrend

by Darrin Donnelly on July 13, 2011

The market was due for a breather after its incredible three-week run that began in mid-June.  On Monday and Tuesday, the market took that breather and recorded two consecutive Distribution Days as it declined on increasing volume both days.

Wednesday’s bounce-back attempt started off strong, but turned weak as the session went on.  Despite finishing 0.5% higher, the NASDAQ closed in the lower half of its intraday range. [click to continue…]

How Nicolas Darvas Used Fundamentals

by Darrin Donnelly on June 30, 2011

Nicolas Darvas Researching Stocks in 1959.

Nicolas Darvas was best known as a technical trader.  His famous “Darvas Box System” was a simple trend-following method.

But, as with most things in life, there’s much more to the story when you dig below the surface.  In this case, there’s much more to the Darvas System than purely trend-following technical analysis.

Darvas referred to himself as a “techno-fundamentalist.”  While he discovered (the hard way!) that there was zero value in fundamental analysis alone, he found that he could vastly improve his trading results by ADDING a fundamental perspective to his technical method. [click to continue…]

Market Finding Support

by Darrin Donnelly on June 27, 2011

After an eight-week correction, the stock market is showing signs of a potential comeback. [click to continue…]

On Tuesday, the NASDAQ’s Follow-Through Day signaled a shift in market sentiment from Downtrend to Uptrend. [click to continue…]

Is It Safe to Buy?

by Darrin Donnelly on June 22, 2011

On Tuesday, the NASDAQ blasted its way to a 2.2% gain on increased volume.  This Accumulation Day came on Day 4 of the market’s rally attempt, which began last week when the NASDAQ tested the March low of 2600.

It’s worth noting that last week’s bottom came right near the 10% correction mark.  That is, 2600 was about 10% below the NASDAQ’s May 2nd high. [click to continue…]

The outstanding new book by Steve Burns

Steve Burns, the man who made $150,000 while trading part-time with the Darvas System, has just published a new book that belongs on EVERY trader’s bookshelf.  In fact, I’m so impressed with this book that I wrote the Foreword for it.

This new book is called NEW TRADER, RICH TRADER and here is my Foreword, just as it appears in the book:

* * *

I was thrilled when I first heard Steve Burns’ story.

First off, here was someone who not only survived one of the worst periods in the history of the stock market, but he actually traded his way to a six-figure fortune during this period. [click to continue…]