What Traders do during the Weekend?

By Brandon Leu, CMT

Weekend is a great time to relax, exercise and clear your mind from the markets, keeping yourself fresh for the new week ahead. However, do make some time for some "backend" activities to grow as a trader. Here is a short list of them.

Prepare for the week ahead

Read up on major events or news that shaped the market the previous week. And watch for major events in the upcoming week. This reduces surprises or allow the trader to have an understanding of the current macro environemnt. And of course, analyse the charts for the week ahead and probable trade set-up.

What's Important: Preparation and planning takes up 80% of a trader's time. Traders trade their plans. Traders do not trade on hunch or tips.

Strategy and Trades Review

Review your trades, check if you have traded according to your plans or if any part of your planning or trading process can be further improved. Also review your trading method/strategy for further improvement, e.g. entry trigger, position sizing or methodology's performance.

What's Important: Trading is a business and it is dynamic, you'll need to makes changes and re-focus if necessary.

Education

Do read or revisit Technical Analysis and trading related topics. There are free materials on the web, libraries or book stores to gain extra knowledge. Your knowledge and experience will compound as you improve regularly.

What's Important: It's not how much you read or absorb each time that matters but the consistent effort of reading on the regular basis. Regular effort helps upkeep and upgrade your knowledge like a regular car maintenance or upgrade. Regular reading routine especially helps a trader to maintain his/her focus and discipline.

Wishing all readers a wonderful week ahead.

Wyckoff's Law of Effort

Law of Effort Wyckoff's Law of Effort states that on any single trading day (or week depending on time frame), huge volume (effort) push by participants should see huge price movement, resulting in a wide spread (long body). This is a basic principle of effort and result. However, as per Singtel's case study, we saw huge selling volume on 11 May, yet the price action only shows a narrow spread (small body). This divergence of effort and result in Wyckoff's Law of Effort principles, indicates possible exhaustion in selling or hidden buying. Thus, with a lack of weakness, Singtel should continue trading range bound for the coming days or weeks till further strength or weakness is observed. Swing Traders who trades range can consider positions at 3.70-3.72, with exit target 3.76-3.78.

Markets searching for technical support

Thoughts on Week Ahead: Week 21 Aug 2023 Markets searching for technical support US FOMC minutes have confirmed market’s fear of a hawkish US FED. This fear has triggered a continued sell-off in global equities over the past week. China economy and policy did not help too much either. China Evergrande filed for chapter 11 in US while Country Garden future remain uncertain as investors continue to keep an eye for a more aggressive policy from Beijing to support the economy and people’s confidence. From a technical perspective, markets are searching for technical support levels, where bargain hunters are willing to come in. Support levels are 4,300 for S&P 500 and 3,130 for STI. For the week ahead, market participants will be zooming in on US FED Chair Powell’s speech at the Jackson Hole meeting. We did not uncover trading (tactical) set up for the week ahead and will update once we identify any. Have a great trading week ahead. Headlines for Week Ahead: Key corp earnings (Nvidia

Thoughts on Week Ahead: Week 28 Aug 2023 Looking out for technical reversal indication Past week was an eventful one, with significant developments ranging from the arrest of former US President Donald Trump to BRICS expanding its membership to include financial powerhouses Saudi Arabia and the UAE. However, the focal point for the financial markets remained the speech by the US Federal Reserve Chair at Jackson Hole. The Chair highlighted that current economic condition is more favorable and hinted at holding rates during the Sept FOMC meeting, but also suggested a possible 25 basis points hike later in 2023, aligning with market expectations. Personal view, mixed rate outlook could suggest potential interest rate pivot (peak). Currently, both the S&P 500 and Hang Seng Index are in the process of establishing support levels at 4,300 and 17,800, respectively. We are closely monitoring these markets for signs of supply exhaustion, which would indicate a potential reversal. Intuit

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