The following terms are used very often in Pristine's Real Time Trading Room. Please read and become very familiar
with them as this will maximize your learning growth to trading mastery with Pristine.com. Ask: Low ask (offer) is the lowest price that someone is willing to accept for a security. Bid:
High bid is the highest price that someone is willing to pay for a security. "Hit the bid" means to sell a stock on the current bid price. Breakout:
Point when the market price moves out of the trend channel. Day Trade: See Pristine Trade Types Doji:
A candlestick in which the open and close of the stock price are the same, or substantially the same. Downtick: A sale of a listed security that occurs at a lower price than the previous transaction. Electronic Communication Network (ECN)
Electronic Communication Newwork consists of ARCA (Archipelago), BTRD (Bloomberg), INCA (Instinet), ISLD (Island), SelectNet (NASD), and REDI (Spear Leads).
ECNs work as order matching systems and allow traders to advertise a price better than the current bid or offer. By using ECNs, traders can by-pass the SOES network and can make markets by playing or splitting the
spread. Futures:
An agreement to purchase or sell a given quantity of a commodity, security, or currency at a specified date in the future. Also called a futures contract. We use the governing S&P 500 futures contract (changes each quarter) as the key leading indicator of the equity market. See also "Index Arbitrage."
Inside Day: Day in which the price range is within the previous day's price range.
Inside Market/Price:
Is the highest bid and the lowest ask (offer) at any given time for an issue. Instinet: A method by which large institutional clients can trade stocks during non-market hours. Intraday:
Intraday data refers to price and volume information that occurs during a single trading day as opposed to daily information, which summarizes trades on a day by day basis. Island (ISLD):
Island is a Electronic Communication Network (ECN). Level II: Level II data is a real-time display of market maker or ECN bids and offers. Studying this data
allows a trader insight into the intentions of the market makers and into the intentions of the market makers and the propensity that the stock has to move multiple levels. Limit Order:
An order to buy or sell a stock when it reaches a certain price. Market Internal: Market internals are used to gauge market
strength or weakness. Pristine follows the governing S&P 500 futures contract, the Tick, Trin, Bond Futures, and the strength or weakness of particular sectors. Market Maker:
In a stock market, a trader responsible for maintaining an orderly market in an individual stock by standing ready to buy or sell shares. On a stock exchange, a market is known a s a specialist. Market Order:
Order to buy or sell at the best available price. Mid-Day Doldrums:
We refer to this as the 11:15 - 2:15 p.m. period. This is the time when break outs often fail. This is typically a slow time, when many Wall Street
market makers are off at lunch and doing other things besides trading. Pristine suggests that only experienced traders trade during this period, if at all. Pristine uses the mid-day doldrums to search for stocks that
have favorable set ups for possible afternoon scalping plays or swing trade opportunities. Momentum Trading:
A style of trading where a trader attempts to identify short bursts of buying or selling pressure in order to quickly enter and exit stocks. Moving Average:
Moving averages are one way to view historical price levels. Moving average take into account some number of price periods (a new period is added and the oldest is dropped from the calculation) to show average price over time. It is possible to weight more recent prices and by linearly or exponentially recent prices and by lenearly or exponentially smoothing the average lines. The longer the averaging period, the more lag you will see between the average and the most recent prices. Pristine uses the following simple moving averages on its charts in making trading decisions:
Chart Duration Period Moving Averages Used Daily 10, 20, 50, 100 and 200 Weekly 20, 50, 100 and 200 Hourly 20 and 200 15-Minute 20 and 200 5-Minute 20 and 200 1 or 2-Minute 10 and 20 NOTE: Also see Pristine's Educational Report, The Mighty 50-Period Moving Average at www.pristine.com. Offer Out:
Price at which a market maker sells his stock and the general public buys. When you "offer out," you are in essence taking the role of a market maker by offering to sell your stock on the offer, typically on an ECN, SelectNet, or ARCA.
Refreshes:
Essentially the same as "he stays." Used when a market maker has filled someone at the bid or offer and the market maker remains, continuing to buy or sell stock at the quoted price. Reversal Times:
Over the many years of trading and study of the markets, Pristine has noted and used profitably various "reversal periods." These are the times in which the direction of the market often changes course. The morning reversal periods are 9:50 - 10:10 a.m., EST, and 10:25 - 10:30 a.m. For example, if the market is showing great strength at the market open, we have experienced that the buying pressure typically ceases and reverses in the first reversal period. Then, for example, if the market continues to sell off, we often find that the selling pressure ceases and often rallies in the 10:25 - 10:30 a.m. reversal period. Trading can be very profitable through 11:15 a.m. or so, which leads us to the next reversal period to watch. We refer to the 11:15 - 2:15 p.m. period as the "mid-day doldrums. Then 2:15 p.m. is our first afternoon reversal period when traders are back getting ready for the afternoon session. When market internals are very positive, it is even possible to take half-lot anticipatory swing trades after this time that are breaking out of consolidation and support on the 15-minute chart. Then, the closing of the bond market at 3:00 p.m. provides the next reversal period. It seems that the closing of bond market gives traders one less thing to worry about, so the market typically picks up steam in one direction or another at this time. Then, the final reversal period is around 3:30 p.m. As Pristine traders are well aware, just because a stock looks good in the morning or early afternoon does not mean that it will close that way. The last 30 minutes of trading can be extremely profitable for scalping or day or swing trades. It is during this time that many buyers wait to commit and robust rallies occur into the close. Based on the above, Pristine believes that the lowest risk trading occurs between 9:35 - 11:15 a.m. and 2:15 - 4:00 p.m.
Scalp Trade (Scalping): See
Pristine Trade Types SelectNet:
SelectNet is a ECN that crosses orders and is supported by the NASD. SelectNet orders must be at or between the spread. Sell Off:
A period of intensified selling in a market that pushes prices sharply lower.
Short Covering: Trades that reverse, or close out, short-sale positions. In the stock market, for instance, shares are purchased to replace the shares previously borrowed. Short Selling:
A trading strategy that anticipates a drop in a share's price. Stock or another financial instrument is borrowed from a broker and then sold, creating a short position. That position is reversed, or covered, when the stock is repurchased to repay to loan. The short seller profits by repurchasing the stock at a lower price than sold for in creating the short positions. An "uptick" (the most recent sale occurred at the offer) is required to sell short.
Specialist:
A stock exchange member who is designated to maintain a fair and orderly market in a specifice stock. They are required to buy and sell for their own account to counteract temporary imbalances in supply and demand.
Spread: The difference between the bid and asked prices. SOES:
Small Order Execution System. SOES was developed in 1984, but made mandatory in 1988 in response to the stock market crash of 1987. It is a non-negotiated exchange where market makers place offers and bids and are required to met certain fill requirements set forth in their participation agreement with the NASD.
Standard & Poor's 500 Stock Index: A benchmark index of 500 large stocks, maintained by Standard & Poor's, a division of McGraw-Hill Cos. Stop (Protective Stop):
The price at which a trader will close out an existing position to cut losses in the event the trade does not move in the intended direction. A trailing, or progressive stop, is a technique that trails the price of a stock up with a stop right behind it.
Swing Trading: See
Pristine Trade Types Teenie: 1/6th of one point. Ticks: Upward or downward price movements in
a security or index. A downtick is the sale of a security at a price below the preceding sale. An uptick is a sale executed at a price higher than the preceding sale. Tick Spread:
The difference between the high and low of the NYSE tick indicator of each trading day. For intra-day trading, Pristine views the tick of under 1000 as oversold and over 1000 as overbought, and looks for intra-day reversals (bounces) when such levels correspond with other extreme levels in the S&P futures and trin.
Uptick: A sale of a listed security that occurs at a higher price than the previous transaction.
The following are additional trading terms that will also help while trading in the RTR: Accumulation: Term usually applied to the transfer of stocks into the Institutional sector, or buying pressure resulting in increased stock values. Advance-Decline Line:
Each day's number of declining issues is subtracted from the number of advancing issues. The net difference is added to a running sum if the difference is positive or subtracted from the running sum if the difference is negative.
American Depositary Receipts (ADRs): Receipts held by an American bank that represent shares in a foreign company. Arbitrage:
Technique of buying and selling securities to take advantage of small difference in
price. Auction Market:
Trading securities on a stock exchange where buyers compete with other buyers and sellers compete with other sellers for the best stock price. Trading in individual stocks is managed and kept orderly by a specialist.
Bear: A person who thinks that prices, the market, an industry, etc, will decline. Bear Market:
Generally when security prices decline 15% or more. Big Board:
Another name for the New York Stock Exchange. Block Trade: Buying or selling 10,000 shares of stock or $200,000 or more worh of bonds. Bloomberg-BTRD:
An ECN that is targeted toward larger institutional that is part of the Bloomberg financial family Blue-Chip Stocks:
Stocks of companies know for their long-established record of earning profits and paying dividends. Bollinger Bands: Fixed lines above and below a security's average price. As volatility increases, the bands widen.
Bottom Fishing: Buying stocks whose prices have bottomed out or fallen to low levels.
Breakaway/Runaway Gap:
When a tradable stock exits in a range by trading at price levels that leaves a price area where no trading occurs on a bar chart. These gaps appear at the completion of important chart formation. Broker-Dealer:
A securities firm that sells mutual funds or other securities to the public. The broker-dealer is responsible for oversight of their affiliated brokers. Bull Market:
A time Period when security prices increase. Call Option: Agreement that gives an investor the right, but not the obligation to, buy a stock, bond, commodity or other
instrument at a specified prices within a specific time period. Candlestick Charts:
Price activity is aggregated and displayed for specific periods of time and coded in the form of candlesticks. The convention of candlesticks visually posts the open, high and low price of the period. Cash Market:
The trading of securities according to their current or spot price, as opposed trading in a security for future delivery. Channel:
In charting, a price channel contains prices throughout a trend. There are three basic
ways to draw channels: parallel, rounded and channels that connect lows or highs. Chicago Board of Trade (CBOT): A commodity-trading market. Chicago Board Options Exchange (CBOE): An
exchange set up by the Chicago Board of Trade to trade stock options. Circuit Breakers:
Measuring used by some major stock and commodities exchanges to restrict trading temporarily when markets rise or fall too far and/or too fast. Closing Price:
The last trading price of a stock when the market closes. Composite Trading:
Total amount of trading across all markets in a share that is listed on the New York Stock Exchange or American Stock Exchange. This includes transactions on those exchanges, the five regional exchanges, and on the Nasdaq Stock Market.
Congestion Area or Pattern: Series of trading days in which there is no visible progress in price. Consolidation:
A pause that allows market participants to reevaluate the market and sets the stage for
the next price move. Consumer Price Index (CPI):
A gauge of inflation that measures changes in the prices of consumer goods. The index is based on a list of specific goods and services purchased in urban areas, and is released monthly by the Labor Department.
Correction: A reverse movement, usually downward, in the price of an individual stock, bond, commodity, index, or the stock market as a whole. "Curbs In":
An indication that trading curbs have been installed on the New York Stock Exchange. Cyclical Stocks: Shares that tend to rise during an upturn in the economy and fall during a downturn. Crossed Market:
A situation in which one broker's bid exceeds the lowest offer of another or vise versa. NASD rules prohibit a broker from intentionally entering such bids or offers. Cup and Handle:
Accumulation pattern observed on bar charts and generally lasts from seven to 65 weeks. The cup is in the shape of a "U" and the handle is usually more than one or two weeks in duration. The handle is s downward drift with low trading volume from the right side.
Daily Chart: This is a chart where the periods are set to equal one day periods. The value that is charted is typically the closing price for each day. Day Order:
An investor's order to buy or sell stock that will be canceled by the end of the day if not filled. Day Trading:
Day trading is a mentality that traders follow to take advantage of the liquidity and execution available through real-time trading systems like Mastertrader. Traders enter the day flat (with no inventory or pre-dispositions) and trade on IntraDay moves and exit the day with no open positions.
Dead-Cat Bounce: Market rebound that sees prices recover and come back up. Defensive Securities:
Stocks with investment returns that do not tend to decline as much as the market in general in times when stock prices are falling. Those include companies with earnings that tend to grow despite the business cycle, such as food and drug firms, or companies that pay relatively high dividends like utilities.
Delayed Opening:
The postponement of trading of an issue on a exchange beyond the normal opening because of market conditions that have been judged by exchange officials to warrant such a delay (e.g., an influx or imbalance of buy or sell orders and/or pending corporate news).
Dip: A slight decline in securities prices followed by a rise. Discount Rate:
The interest rate charged by the Federal Reserve on Loans to banks and other financial institutions. This rate influences the rates these financial institutions can charge their customers. Double Bottom/Top:
Price action of a security or market average where it has declined (advanced) two times to the same approximate level, indicating the existence of a support (resistance) level and a possibility that the downward (upward) trend has ended.
Dow Jones Average:
There are four Dow Jones averages that track price changes in various sector. The Dow Jones Industrial Average tracks the price changes of the stock of 30 industrial companies. The Dow Jones Transportation Average monitors the price changes of the stocks of 20 airlines, railroads and trucking companies. The Dow Jones Utility Average measures the performance of the stock of 15 gas, electric and power companies. The Dow Jones 65 composite Average monitors the stock of all 65 companies that make up the other three averages.
Dow Jones Industrial Average (DJIA):
Often referred to as the Dow, it is the best know and most widely reported indicator of the stock market' s performance. The Dow tracks the price changes of 30 significant industrial stocks traded on the New York Stock Exchange. Their combined market value is equal to roughly 20 % of the market value of all stocks listed on the New York Stock Exchange.
Earnings: Income after a company's taxes and all other expenses have been paid. Also called profit or net income. Earnings Per Share:
Calculated by dividing the number of outstanding shares into earnings. Economic Indicators: Key statistics used to analyze business conditions and to make forecasts. Elliot Wave Theory:
Originally published by Ralph Nelson Elliot in 1939, it is a pattern-recognition technique based on the thesis that stock markets follow a pattern or rhythm of five waves up and three waves down to form a complete cycle of eight waves. The down waves are referred to as "correction" waves.
Emerging Markets: Financial markets in nations that are developing market-based economies and have become popular with U.S. investors, such as China and Peru. Exchange:
A centralized place for trading securities and commodities, usually involving an auction process. Fade: Selling a rising price or buying a falling price. Fair Value:
A mathematical relationship between the S&P 500 cash and futures index. Federal Funds Rate:
The interest rate banks charge on overnight loans to banks that need more cash to meet bank reserve requirements. The Federal Reserve sets the interest rate. Federal Open Market Committee:
The policy-making arm of the Federal Reserve Board. It sets monetary policy to meet the Fed's objectives of regulating the money supply and credit. The FOMC's chief tool is the purchase and sale of government securities, which increase or decrease the money supply, respectively. It also sets key interest rates, such as the discount rate.
Federal Reserve:
The central bank of the U.S. that sets monetary policy. The Federal Reserve oversees money supply, interest rates and credit with the goal of keeping the U.S. economy and currency stable. Governed by a seven-member board, the system includes 12 regional Federal Banks, 25 branches, and all national and state banks that are part of the system.
Fibonacci Numbers:
Fibonacci numbers are a sequence of numbers in which each successive number is the sum of the two previous numbers: 1,2,3,5,8,13,21,34,55,89,144,610, etc. There are four popular Fibonacci studies: arcs, fans, retracements, and time zones. The interpretation of these studies involves anticipating changes in trends as prices near the lines created by the Fibonacci studies.
Flag:
A sharp price spike followed with a sideways consolidation with a bias counter to the rally. Prices usually break out of this consolidation pattern with an objective equal to the mast preceding the flag.
Float:
The number of outstanding shares in a corporation available for trading by the public. Fundamental Analysis:
Analysis technique that looks at a company's financial condition, management, and place in its industry to predict a company's stock price movement. Hedging:
Buying or selling a product or a security to offset a possible loss from price changes on a future corresponding purchase or sale.
Index fund:
A mutual fund that seeks to produce the same return that an investor would get if they owned all the stocks in a particular stock index, often the Standard and Poor's 500-stock index. Index Arbitrage:
Buying or selling baskets of stocks while at the same time executing offsetting trades in stock-index futures. For example, if stocks are temporarily cheaper than futures, an arbitrager will buy stocks and sell futures to capture a profit on the difference or spread between the two prices.
Indexing: Buying and holding a mix of stocks that match the performance of a broad stock-market barometer such as the Standard & Poor's 500 stock index. Initial Public Offering (IPO):
The first time a company issues stock to the public. Insider: A person, such as an executive or director, who has information about a company before the
information is available to the public. Inside trading:
In one respect, it refers to the legal trading of a security by corporate officers based on information available to the public. In another respect, it refers to the illegal trading of securities by any investor based on information not available to the public.
Intermarket Trading:
An electronic communication network linking the trading Systems (ITS) floors of the seven registered exchanges to forster competition among them in stocks listed on either the NYSE or AMEX and one or more of the regional exchanges.
Lagging Economic Indicators:
A composite of seven economic measurements that tend to trail developments in the economy as a whole. Those indicators are duration of unemployment, ratio of inventories to sales, index of labor costs per unit of output, average prime rate, outstanding commercial and industrial loans, ratio of outstanding consumer installment credit to personal income and consumer price index for services.
Leading Economic Indicators:
A composite of 11 economic measurements developed to help forecast likely changes in the economy as a whole. The components are average work, unemployment claims, orders for consumer goods, slower deliveries, plant and equipment orders; building permits, durable order backlog, material prices, stock prices, M2 money supply and consumer expectations.
LEAPS: Options that won't expire for up to three years. Acronym for long-term equity anticipation securities. Level I:
Level 1 (sometimes called Quick Quote) is trade and quote data that only shows current bid, ask, last trade value and volume and some daily summary information. You do not see who is buying and selling nor do you know the number of shares for sale at all price levels.
Listed Stock: The stock of a company which is traded on a securities exchange. Long Bond:
Slang for a 30-year bond issued by the U.S. Treasury. It is considered a key indicator, or benchmark, of trends in long-term interest rates. Margin Call:
A demand upon a customer to deposit money or securities with a broker. Margin calls are made in accordance with Regulation T which governs the amount of credit that may be advanced by brokers to customers for the purchase of securities.
Market Capitalization: The total market value of a company or stock, which equals the number of shares times the current market price of the shares. Market Minder:
A customizable table that allows you to isolate and display key information fields on a list of stocks or indexes. You set the list and develop column layout of the market minder. Market Sentiment:
A measurement of the bullish or bearish attitude of the crowd. Market Timing: Shifting money in and out of investment markets in an effort to take advantage of rising and falling prices.
Momentum: Momentum is the most basic concept in oscillator analysis. Momentum is the rate of change at which the market is rising or falling. Nasdaq:
An electronic stock market run by the National Association of Securities Dealers. Brokers get price quotes through a computer network and trade via telephone or computer network. Nasdaq Composite Index:
An index that covers the price movements of all stocks traded on the Nasdaq Stock Market. Nasdaq National Market:
A subdivision of the Nasdaq Stock Market that contains the largest and most actively traded stocks on Nasdaq. Companies must meet more stringent standards to be included in this section than they do to be included in the other major subdivision, the Nasdaq Small-Cap Market.
National Association of Securities Dealers (NASD):
A membership organization for securities-brokerage firms and underwriters in the U.S. that promise to abide by association rules. It sets guidelines for ethics and standardized industry practices, and has a disciplinary structure for looking into allegations of violations. The NASD also operates the Nasdaq Stock Market.
New York Stock Exchange: Founded in 1792 , it is the roughly 2,3000 companies whose shares are listed there is about $5 trillion. NYSE Composite Index:
An index that covers the price movements of all stocks listed on the New York Stock Exchange. Odd Lot: Order to buy or sell less than 100 shares of stock. Offer: Same as the ASK price. See Ask.
Open Order: A buy or sell order that has not yet been executed or canceled. Options:
An agreement allowing an investor to buy or sell stock during a specific time for a specific price. Options are traded on several exchanges, including the Chicago Board of Options Exchange, the American Stock Exchange, the Philadelphia Stock Exchange, the Pacific Stock Exchange and the New York Stock Exchange.
Over The Counter (OTC): Market where transactions are conducted over the telephone and computer network of dealers, rather than on the floor of an ex change. Penny Stocks:
While many legitimate companies have share prices that low, the term "penny stocks" includes stocks that are priced at $5 and below and usually refers to speculative companies with little or no real business that are heavily promoted by hard-selling brokerage firms.
Pink Sheets: The printed quotations of the bid and ask prices of over-the-counter stocks, published by National Quotation Bureaus, Inc. Point:
A change of $1 in the market price of a stock is one point. Portfolio:
A collection of securities held by an investor.
Private Placement:
The sale of stocks or other investments directly to an investor. The securities in a private placement don't have to be registered with the Securities and Exchange Commission. Producer Price Index (PPI):
A group of statistics compiled by the Labor Department that are used as a gauge of inflation as the wholesale level. The index for finished goods-which tracks commodities that will not undergo further processing and are ready for sale to the ultimate user-is the most prominently reported of the statistics.
Profit Taking: Selling securities after a recent, often rapid price increase. Program Trading:
Stock trades involving the purchase or sale of a basket including 15 or more socks with a total market value of $1 million or more. Most program trades are executed on the New York Stock Exchange, using computerized trading systems. Index arbitrage is the most prominently reported type of program trading.
Put Option: An agreement that gives an investor the right but not the obligation to sell a stock, bond, commodity or other instrument of a specified price within a specific time period.
Put/Call Volume Ratio: The volume of trading in puts-options to sell-divided by the total calls-options to buy-for a security or an index. Quote:
A bid to buy a security or an offer to sell a security in a given market at a given time. Reversal Gap:
Chart formation where the low of the day is above the previous day's range and the close is above the day's open. Reversal Stop:
An order to reverse position when a specific price is hit. Round Lot:
A unit of trading or a multiple thereof, generally consisting of 100 shares of stock. Russell 2000:
A small-capitalization stock index. It consists of the 2,000 smallest securities in the Russell 3000 ($RUT.X). Secondary Market:
Market for issues that were previously offered or sold. Secondary Offering:
The sale to the public of a usually large block of stock that is owned by an existing shareholder. Sector Funds:
Mutual funds that invest in a single-industry sector, such as biotechnology, gold, or regional banks. Sector funds tend to generate erratic performance, and they often dominate both the top and bottom of the annual mutual fund performance charts.
Securities and Exchange Commission (SEC):
The federal agency that enforces securities laws and sets standards for disclosure about publicly traded securities, including mutual funds. It was created in 1934 and consists of five commissioners appointed by the president and confirmed by the senate to staggered terms.
Secular: Long term as opposed too seasonal or cyclical. Security:
A financial instrument that indicates the holder owns a share or shares of a company (stock) or has loaned money to a company or government organization (bond). Share:
An investment that represents part ownership of a company or a mutual fund. See also "Stock." Short Covering:
Trades that reverse, or close out, short-sale positions. In the stock market, for instance, shares are purchased to replace the shares previously borrowed. Short Interest:
Total number of shares of a given stock that have been sold short and not yet repurchased. Small Cap Stocks:
Shares of relatively small publicly traded corporations, typically with a total market value, or capitalization, of less than $600 million. Stock:
An investment that represents part ownership of a company. There are two different types of stock: common and preferred. Common stocks provide voting rights but no guarantee of dividend payments. Preferred stocks provide no voting rights but have a set, guaranteed dividend payment. See also "Share."
Stock Index Futures: A contract to buy or sell the cash value of a stock index by a specified date.
Stock Option:
An agreement allowing an investor to buy or sell shares of stock within a stipulated time and for a certain price. Stock Split:
A change in a company's number of shares outstanding that doesn't change a company's
total market value, or each shareholder's percentage stake in the company. Additional shares are issued to existing shareholders, at a rate expressed as a ratio. A 2-for-1 stock split, for instance, doubles the number
of shares outstanding. Investors will own two shares after the split for each share they owned before the split. Stock splits are typically viewed by investors as bullish. Stop Limit Order:
A stop order that becomes a limit order after the specified price has been reached. Technical Analysis:
Research of a security or market sector that uses trading data, such as volume and price trends, to make predictions on stock movements. Third Market Trading:
Over the counter trading in stocks that are listed on an exchange. Ticker:
In trading systems like Mastertrader, tickers can be set to display market maker positioning and/or trade details and are color coded in order to easily recognize market direction. Ticker Symbol:
Letters that identify a security for trading purposes. A security's ticker symbol also may be used in news and price-quotation services to identify the security. Time and Sales:
Time and sales ticker displays information about specific trades as they go off. The selling institution is responsible for posting the trade (within 90 seconds) and traders use this to see where the market sentiment is at a certain time.
Timed Out:
After you place an order, whether on SOES or on an ECN, the order will only be "live" for a specified amount of time. Then your order has "Timed Out" this means that is has run out of time and it will be automatically canceled by the proper exchange. Time constraints vary for each type of order.
Townsend Analytics: Townsend Analytics is the software developer who developed Real Tick III and Mastertrader.
Trade Date:
The actual date on which your shares are purchased or sold. The transaction price is determined by the closing net asset value on that date. This date also determines the eligibility for dividends. Traders:
People who negotiate prices and execute buy and sell orders, either on behalf of an investor or for their own account.
Trading Curbs: One of several "circuit breakers" adopted by the NYSE and
approved by the Securities and Exchange Commission in response to the October 1987 stock market crash. Triple Witching:
Slang for the quarterly expiration of stock index futures, stock index options and options on individual stocks. Trading associated with the expirations inflates stock market volume and can cause volatility in prices. Occurs on the third Friday of March, June, September and December.
Unlisted Stock: A security not listed on a stock exchange and generally traded in the OTC market.
Up to Bid:
This happens when a market maker moves his current bid to the highest bid. This is a bullish sign because the market maker will now pay a higher price to buy a stock than any other market maker at that time.
Volatility:
The characteristic of a security or market to fall or rise sharply in price in a short-term period. VIX: The CBOE's volatility index. Volume:
Number of shares traded in a company or an entire market during a given period. Wedge: Technical pattern where two converging lines connect a group of price peaks and troughs. Whipsaw:
Losing money on both sides of a price swing. ECONOMIC DATA DEFINITIONS GDP: Real change in gross domestic product at annual percentage rate, quarterly, from Commerce Department.
Payrolls:
Change in nonfarm payrolls in thousands, monthly, from Labor Department. Jobless rate: Percentage of unemployed adults in workforce, monthly, from Labor Department. Trade gap:
Balance of international trade in goods and services in billions of dollars, monthly, from Commerce Department. Productivity:
Change in nonfarm business
productivity at annual percentage rate, quarterly, from Labor Department. Housing starts: Starts of housing units at annual rate in thousands, monthly, from Commerce Department. CPI:
Percentage change in Consumer Price Index, monthly, from Labor Department. CPI core: Percentage change in CPI excluding food and energy, monthly, from Labor Department. PPI:
Percentage change in Producer Price Index for finished goods, monthly, from Labor Department. PPI core: Percentage change in PPI for finished goods excluding food and energy, monthly, from Labor Department.
Purchases deflator: Change in gross domestic purchases price deflator at annual percentage rate, quarterly, from Commerce Department. Capacity utilization:
Percentage of industrial capacity in use, monthly, from Federal Reserve. NAPM prices paid:
Diffusion index of companies paying higher prices, monthly, from National Association of Purchasing Management. CRB Index:
Index of commodity prices, end of
month reading, from Commodity Research Bureau. Personal income:
Percentage change in household income, monthly, from Commerce Department. Hourly earnings:
Percentage change in hourly earnings in private sector, monthly, from Labor Department. Employment costs: Change in Employment Cost Index at annual percentage rate, quarterly, from Labor Department.
Retail sales:
Percentage change of sales at retail establishments, monthly, from Commerce Department. Personal spending: Percentage change in personal consumption expenditures, monthly, from Commerce Department. Existing home sales:
Sales of previously owned houses at annual rate in millions, from National Association of Realtors. NAPM Index:
Diffusion index of current business conditions in manufacturing, monthly, from National Association of Purchasing Management.
Industrial production:
Percentage change in industrial output, monthly, from Federal Reserve. Factory orders: Percentage change in orders for factory goods, monthly, from Commerce Department. Inventory change:
Change in business inventories in billions of dollars, quarterly, from Commerce Department. Producers' durables:
Percentage change in investment of producers' durable equipment, quarterly, from Commerce Department. S&P 500: S&P 500 stock index, end of month reading, from Standard & Poor's. 3-month T-bill:
Yield on three-month Treasury bills, monthly average of daily close, from Federal Reserve. 10-year T-note: Yield on 10-year Treasury notes, monthly average of daily close, from Federal Reserve. 30-year T-bond:
Yield on 30-year Treasury bonds, monthly average of daily close, from Federal Reserve. US$-Euro: Dollars per euro, monthly average of daily noon price, from the Federal Reserve. |
