Notes
CHAPTER 1 MARKET BASICS AND MARKET MECHANICS
1. Reading the tape is a method where a trader (typically more active) watches tick-by-tick trades and changes in price to determine entry and exit points.
CHAPTER 2 DATA THAT MOVES THE MARKETS
1. There is a preliminary report that comes mid-month and a revised version usually about 14 days apart.
2. Case-Shiller data does not measure new construction, condominiums, co-ops/apartments, multifamily dwellings, or other properties that cannot be identified as single-family property.
3. The Conference Board surveys 5,000 U.S. households monthly. The survey consists of five questions that ask the respondents’ opinions about the following:
- Current business conditions
- Business conditions for the next six months
- Current employment conditions
- Employment conditions for the next six months
- Total family income for the next six months
CHAPTER 3 FUNDAMENTAL AND TECHNICAL STOCK ANALYSIS AND TOOLS
1. The S&P 500 is the second-most-followed index of U.S. large-cap companies behind the Dow Jones Industrial Average. It was created in 1957 and is composed of the prices of 500 large-cap common stocks actively traded in the United States. The stocks included in the S&P 500 are those of large publicly held companies that trade on either of the two largest U.S. stock market companies: the NYSE and the Nasdaq. Although most of the companies in the S&P 500 are U.S.-based, there are a few that are not, which were grandfathered into the index before the ...
