Daytrading Q & A

Overnight Update

Overnight Update Answers

1)  What is the Overnight Update?
The Overnight Update is a compilation of studies and a commentary designed to give our subscribers an overview of the markets selected for trading.

The studies are Cycle Timing and Support/Resistance. Our Commentary recaps the last trading session and gives a valuable look at the likely scenarios for the next session.

Additionally, a 5-minute price chart and all trades made for each security traded is included in the Current Performance section. Following this is the Trading Statistics page, which gives information on how the Bulletin is performing.

2)  When is the Bulletin’s Overnight Update available?
Subscribers receive a copy via e-mail, delivered late the evening prior to trading. The current Overnight Update can be viewed online by subscribers and free trialers on our Current Performance page. All past Overnight Updates are available for viewing on the Historical Results page.

3)  Why do you show all the trades taken in the Overnight Update?
In order to become a better trader, it is imperative that you review all trades that you have taken. If you follow the Bulletin Signals and use the Overnight Update as directed, you will most likely profit handsomely. You must be disciplined and take the trades without hesitation and follow our Management and Exit signals. 

4)  Why are Key Cycles shown on the Cycle Timing Chart?
The Key Cycles are the larger 60 minute and longer cycles that may or may not cause reversals or congestion during any given trading period. When these longer cycles do influence the intraday action, they do so dramatically.

5)  Why were slippage and commissions not included on your Trading Statistics page prior to 1999?
We started tracking and including slippage and commissions in June 1998 on the Overnight Updates. (See FAQ 15 below). Prior to this time we did not include this information.

To maintain consistency, the last page of the Overnight Update, "Trading Statistics," does not include slippage and commissions (prior to January 2, 1999). Page 5 of the Overnight Update, "Current Performance," does include our best estimate of a subscriber's likely slippage and commissions based on a mean cost of $25 per round turn commission, and slippage based on a 45 second delay from the time we issue the signal.

For the Bulletin subscribers slippage isn’t as much of a problem entering trades as exiting trades; our entries are almost always taken during periods of low volatility. We attempt to exit when price is still moving in our favor which reduces slippage and allows us to be on the right side of the bid-ask spread.

Since January 1999 our Current Results page does include commissions and slippage.

6)  The Statistical Results page is incomprehensible to me; what do all the numbers mean?
Please see the full explanation on Interpreting the Trading Statistics.

7)  In the “Guide” you mention that the Cycle Timing is calculated from short-term cycle phasing analysis.  What is cycle phasing analysis?
Cycle Phasing analyzes the periods of what we view as the significant time periods for a security. Sometimes the highs or lows of many or all of these cycles will occur simultaneously. When this happens, the resultant move is very strong and its duration is extended. Happily, we also know from our data when the move will occur and what direction it will take. 

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