Easy to Borrow (ETB): When short selling, stocks are classified by their availability to be borrowed. Highly liquid stocks are considered “easy to borrow.” These stock are easily found on the market should someone decide to borrow. Due to regulations, a short sale transaction in the U.S. and several other countries must be preceded by locating the stock and quantity.. However, the lending broker can create a list of securities that do not require such a locate. This list is referred to as an “easy-to-borrow” (ETB) list, also known as “blanket assurances.”

Elliott Wave Analysis: An approach to market analysis that is based on repetitive wave patterns and the Fibonacci number sequence. An ideal Elliott wave pattern shows a five wave advance followed by a three wave decline.

Energy Commodities Index ($GJX): Published by Goldman Sachs, the energy products listed on the $GJX include natural gas, heating oil, and crude oil.

Engulfing Pattern: A reversal pattern that can be bearish or bullish depending upon whether it is in an uptrend or downtrend. The first day is characterized by a small body, followed by a day whose body completely engulfs the previous day’s body.

Evening Doji Star: A three day/candle bearish reversal pattern very similar to the Evening Star. The current uptrend should continue with a large green candle. The next candle opens higher, trades in a small range, then closes at its open (Doji). The next day closes below the midpoint of the body of the first day.

Evening Star: A bearish reversal pattern that continues the current uptrend with a long green candle body followed by a gap up to a small candle body, then a big red candle with a close below the midpoint of the first candle.

Exchange Traded Fund (ETF): A security that tracks a set of equities, very similar to an index. An ETF is traded just as a normal share of stock is traded on an exchange, and has it’s price adjusted throughout the day, rather than at market close (like a mutual fund). ETFs are typically made up of stocks that are within a similar industry, like energy or metals, but can cover an index of equities as well.

Exhaustion Gap: A price gap that occurs at the end of a significant trend, and signals that the trend is ending.

Exponential Moving Average (EMA): A moving average that gives greater weight to more recent data in an attempt to reduce the lag of (or “smooth”) the moving average.

Extended (regarding price): A stock that has risen past its pivot point is said to be extended. Stocks that are extended are considered to be a risky trade as it is more likely to reverse than to advance.


Leave a Reply

Your email address will not be published. Required fields are marked *