Market Rotation

A period of time when a stock market sector that had previously been struggling begins outperforming competition and becomes a market leader.  A market rotation can be long or short-term.  These rotations are typically triggered by an external event.  The scale of the...

Market Cap

A figure used by the investment community to determine a company’s size.  It refers to the total dollar market value of a company’s outstanding shares of stock.  The market capitalization (or “market cap”) of the company is calculated by...

Macro Trading

In contrast to Micro Trading (which is industry specific), Macro Trading is taking advantage of changes within a large sector.  Traders utilizing this strategy will study Macro factors to analyze and predict the future performance of a specific sector.  They use...

Hyperwave

A theory that is used as a way to describe a blowing bubble.  It is made up of specified signals at specified times which may predict future movements with varying accuracy.  Essentially, at certain times the price won’t go above a certain range, and at others,...

Day Trading

The buying and selling of financial instruments (derivatives, forex, commodities, etc) in an attempt to make a profit the same day.  While all trading is done with the aim of making a profit, what sets day traders apart is they rarely hold a position overnight (or...

Pennant Chart Pattern

A continuation chart pattern seen when a security shows large upward or downward motion followed by a brief consolidation period before continuing to move in the same direction.  The pattern looks like a small symmetrical triangle (referred to as the...