Daily Archives: June 16, 2012

Institutional Trader Spying Week Of June 11 – 15th 2012

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It is so important to track institutional trader activity because it is institutions that cause sustained trends that we all can make money from.

Amateur traders like you and I, we may cause a 1 or 2 day bounce but we lack the buying power to keep a trend going.

Up to 80% of all market activity is that of institutional traders. Keep in mind that I’m using the broadest brush for defining institutional traders: everyone who is not an amateur trader such as money managers, hedge funds, financial firms, and HFT trading firms.

I invented a unique method for tracking institutional trader activity as you will see in the video below that is proprietary to GuerillaStockTrading.com only. No where else will you find this type of analysis because I invented it. Anybody else you see on any other blog doing this is just a cheap imitation copycat. As such their analysis is filled with errors. Make sure you bookmark http://www.guerillastocktrading.com and come back each Saturday for my Institutional Trader Spy report you won’t find anywhere else.


On Thursday, June 14th 2012, institutional trader activity was detected. There was a huge surge of buying activity from institutional traders after 3:00 PM ET on the news that OPEC would not cut production, and that central bankers were working on a secret plan to inject a huge amount of liquidity into Greece’s market if needed following elections this weekend.

On Thursday, June 14th 2012, institutional traders bought Energy, Financials, and Technology.

Song: Fortune On Wall Street
Album: Wall Street: Working On The Edge
Artist: Lance Jepsen
Available on iTunes Now At http://itunes.apple.com/us/album/wall-street-working-on-edge/id529290850

Weekend Stock Screener 6/16/12

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This Saturday, the weekend stock screener is showing several gold mining stocks which are doing the Alligator pattern of consecutive moving average crossovers in larger time frames.

This is not surprising because we know that gold is entering its seasonally strong time of year. While the precious metal has yet to run, gold mining stocks present compelling bargains after their sell off over the last few months.

The huge winner from last weekend’s stock screener is ARNA. Up a whopping 26.89% since I posted it last Saturday.

Notice that almost every stock posted last Saturday is up. This is because the market as a whole was up last week.

Keep your eyes and ears on the results of the Greece elections this weekend as it will set the tone for Wall Street next week.

The spreadsheet below updates in real-time and will keep track of the performance for about 1 month before they are removed.

Song: Fibonacci Battle Lines
Album: Wall Street – Working On the Edge
Artist: Lance Jepsen
Available on iTunes now at http://itunes.apple.com/us/album/wall-street-working-on-edge/id529290850

The Best Parabolic SAR Settings

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The parabolic SAR, also commonly referred to as the parabolic stop and reverse is one of the most widely used indicators among currency traders across the world. While there are many other tools available for predicting future movement of an asset, very few have lived up to be as efficient as the parabolic SAR. Here we will look into the best parabolic SAR settings as well as how you can incorporate it into your trading strategy, so you too can start making money on the markets.

Understanding and Using Parabolic SAR in your Trading

The parabolic stop and reverse system is used in calculating the direction of an asset’s momentum and the point in time where the momentum of the asset had an increase probability of reversal. In simple terms – indicating a change in trend. Like most other technical indicators, the parabolic SAR uses a series of colored dots – usually green and red, which is found either above or below the asset’s price on the chart. When the price is above the dots, you sell, and when the price is below the dots, you buy. Ultimately, when the dots change color, you reverse your trade position. Once the dots start moving closer to the candlesticks, indication that the trend is slowing down or reversing will become clear. Here, the use of additional technical indicators will give you a better idea as to whether you should stay in the trend and make a profit, or exit early.


The Best Parabolic SAR Settings

The acceleration factor, in general, is set to the initial value of 0.02. However, this factor increases by 0.02 each time a new EP (extreme point), is recorded, essentially escalating the rate to a point where the stop and reverse converges to the price. The maximum value for the acceleration factor is set to 0.20. In stock trading, most traders prefer an acceleration factor of 0.01, and in currency trading, traders prefer to set the acceleration factor to 0.02.

Short term traders – Preferred acceleration factor value of 0.06 and a maximum limiter value of 0.20.
Conservative traders – Preferred acceleration factor value of 0.02 and a maximum limiter value of 0.20, (default settings).

Although believed to be the best parabolic SAR settings, take some time to play around with the setting to see what works best for you. The parabolic stop and reverse, like most other technical indicators, will never be 100% accurate in prediction, but if combined with several other indicators, will surely enhance your trading success.