I’ll be honest – the ferocity of today’s last hour decline took me by surprise and took me out of a few positions. From the top of today’s range (13,498) to the bottom (13,199), the Dow ‘lost’ 300 points today in steady decline. The opening hour above yesterday’s close lured in new buyers hoping everything…
While doing my evening scan, I found the following stocks very interesting from the standpoint of major technical damage that has occurred to them over the following days during the market decline. Of course, I am not advocating trading these stocks – I am only noting that these have interesting patterns that have taken down…
Where the major indexes stand currently, we are experiencing an orderly, yet rapid, pullback to established support zones. Recall that as a market rises, it undergoes pullbacks to shake out excesses and allow opportunities for latecomers to establish new positions, or current traders to establish larger positions. Markets pullback as a result of orderly profit…
In this case, pictures speak more than words. Both in the Dow and the S&P 500, price sits mere breaths above key support zones and are threatening to break them. Buyers should take the opportunity to step in and support the indexes, but should they not, odds would favor much lower prices as stops are…
I know last week’s price action was rough for many traders – shocking to some – and many traders may have been extremely frustrated or lost confidence because of trades that took them under in the rapidly declining market. Dr. Steenbarger addresses traders who have lost confidence in a two-part post: Part One:Â Gaining Perspective…
After yesterday’s market decline, so many bloggers provided their thoughts on what will happen next, either from a sentiment standpoint or a historical standpoint. I wanted to highlight a few of these posts for deeper study: Dr. Steenbarger not only provides a commentary of his own, but he provides excellent links that I highly recommend…
Ok, so today’s action in the stock market wasn’t as bad as it could have been, but it was bad. You all know the headlines and the reasons, so I won’t address them. The headlines blame the housing market, rising gas prices, rising interest rates, etc. A few of the major stocks had declined greatly…
My, how the mighty have fallen! I admit that the following charts are not as bad as they could be, but nonetheless, many traders were trapped in these overnight blunders and are underwater with (temporarily) dashed hopes. The reason each of these stock ‘blunders’ is remarkable is that there was great news or ‘hype’ in…
I promised more weekly uptrends to study in the last post and here are a few examples: Warnaco Group – WRNC – is exhibiting a “two-step” move and is currently beginning a potential sell swing lower (aka – not time to buy now… study the chart only): Blue Coat Systems – BCSI -Â Notice the…
I tend to get caught up on the daily charts and play for smaller targets and this is a bane of mine and – I suspect – many short-term traders as well. When you position yourself on daily charts for swing candidates, you may play for $5 or $10 per swing with respective stops of…