| Clean Break |
When the price bar moves decisively across a support or resistance area. The height off the bar should be higher than the
average bar height of the previous price bars but does not need to be extreme. |
Defensive stock
Defensive name |
A stock that usually not a growth stock but does well in good times or bad. The best defensive stocks have a dividend with a good yield. |
| Discounting/Discounted |
Is when the price of an event is already in the stock, Index, or whatever. If the market has already discounted something in (like an election victory for
specific political party) then the event of the election will mean nothing as long as it meets expectations. |
| DMA |
"Day Moving Average", so the 200DMA is the 200 Day Moving Average. |
| Fade |
To go against. To take the opposite side. |
| Floor Trader Pivots |
A calculation that is performed using the previous day's high, low, open, and close to determine 5 support/resistance levels: Support Level 2 (S2),
Support Level 1 (S1), Pivot Point (PP), Resistance Level 1 (R1), Resistance Level 2 (R2).
See our video on Floor Trader Pivots. |
| Flyer |
A position (usually a stock position) acquired for short term gain (shorter than usual) that does not follow the usual criteria for opening a position
but has obvious short term momentum that is likely to continue. |
| Gap Up/Gap Down |
A Gap is when the opening price is different than the closing price. If the SP 500 closed at 1,100 and opens at 1,110 then it "gapped up" 10 points; if
it opened at 1,090 then it "gapped down" 10 points.
|
| Long Trade |
When you own the stock. |
| Pivot Point (PP) |
The dividing line between bullish and bearish trading. See our video on
Floor Trader Pivots. |
| R1 & R2 |
The first and second level of resistance above the daily Pivot Point. See our video on
Floor Trader Pivots. |
| Real Seller |
A person who sells to exit a long position. This does not include short sellers. We generally count retail investors and Hedge Funds in this category but not Mutual Funds.
Mutual Funds usually put money into the market or take it out based on cash inflows and outflows from their customers. Mutual Fund customers are usually retail investors or
respond to market action like a retail investor. |
| S1 & S2 |
The first and second level of support below the daily Pivot Point. See our video on
Floor Trader Pivots. |
| Short Trade |
When you sell stock that you borrowed from your broker, making money if it declines in price. |
| Short covering rally |
When short sellers buy stock to close out short positions. All good rallies begin as a short covering rally. |
| Stop Loss |
An exit order that is placed with your broker to be executed if the price moves against you and reaches the specified value. |
| Yield Curve |
A chart of Interest Rate vs. Maturity for US Treasury Bonds. The US Treasury Bond is the benchmark for all other bonds. Since banks borrow short term maturities to
make loans on a longer repayment term (profiting of the difference between the short end of the Yield Curve
and the log end) a steep Yield Curve is profitable for the banks and a flatter
Yield Curve can severely hurt bank profits.
See article.
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