Bryan Leighton's Page

Recently the markets have rallied on the day of the FOMC announcement. The market knows the Federal Reserve Bank is not going to say anything to spoil the apple cart. They have been more than accommodative by keeping the Fed funds rate (overnight rate from the FRB to the large major banks) at virtually zero percent. Some would argue that these efforts have saved the financial system. This comes even as banks are still not lending. Well who is really qualified to get a loan anyway with unemployme… Continue

Is the bond market talking to us? The yield on the 10 year Treasury note is now at 3.61%. The 10 year Treasury note is by far the most important bond. Most of the mortgages are based off the 10 year note. The housing market is one area in the economy that is still facing major headwinds. Foreclosures and delinquent mortgages continue to rise. This fact remains even with the U.S. government offering an $8,000 tax credit for first time home buyers and the $6500 tax credit to anyone that buys a hou… Continue

Since yesterday morning, a channel had been forming on the SPY 10 minute chart. It was a nice downward channel that continued to bounce off the lower channel trendline and then hit the upper. These patterns break to the upside about 90% of the time and can be used as a great trading method for making money. The key is to understand that once the break is made, the technicals signal a move and traders pile on the trade. This send it spiking higher like the below example. Learn the channel pattern… Continue

The stock market has staged a huge reversal day after some of the most bullish news that one could receive. The government jobs report was almost positive and the revisions were all much better. Then the factory order report was much better than expected. Many that are not traders would think the market would be moving to the moon and we have a huge reversal underway. It's is almost comical when the market is falling as it did at 2:30 pm ET to get positive comments from Fed Bank officials. This… Continue

Note two reasons for a no brainer bounce in the markets. #1. Double bottom gap fill hit. #2. Obama speech has notoriously been a time to see the markets get propped up. Great trading times folks! Enjoy!