There is a bit of ominous information for the Stock Market in terms of the recent non-stop rally in the $CRB Commodities Index that occurred both before and after the September 18th US Federal Reserve rate cut. The Federal Reserve is vigilant in its campaign against inflation, and rising commodities prices are often used as…
Some traders love the esoteric ‘magic’ of the Fibonacci Retracement Lines, which are becoming more and more popular in trading circles. Fibonacci Retracement Lines are available in most charting platforms, including the free site StockCharts.com. The ‘hard and fast’ rule for constructing a retracement is to choose a meaningful price swing high and then draw…
Sometimes you see a stock chart that grabs you attention and makes you wonder “How!?” National Oil-well Varco (NOV) is such a company. Words only detract from the uptrend beauty that is on this chart: Weekly Arithmetic Chart (NOV): Weekly Logarithmic Chart: Daily Logarithmic Chart: Absolute perfection. Observe the near perfect 45 degree angular rise…
Often, technical analysis alone is not sufficient to analyze properly the movements in the broad market Indexes, like the S&P 500 or the Dow Jones Index. Traders benefit from the larger picture of analyzing broader, interconnected perspectives from studying inter-market relationships and how markets are often intertwined, and send signals ahead of each other. Without…
The week of September 23rd – 28th left us in a more favorable technical position on the index that bears were hoping. Price consolidated – through time – and actually added to the gains from last week’s reaction the Federal Reserve’s ‘surprise’ decision. At least temporarily, the bulls have dominated the technical landscape, gaining significant…
The recent moves and recoveries in some key NASDAQ stocks have been nothing less than stellar over the last month. Typically, when technology stocks outperform (or lead) the market, this has been a good sign for both the Dow and the S&P in the near future, as investors raise technology stocks when they perceive improving/better…
Andy Swan recently provided a brief but very informative post regarding Entrepreneurship, Trading, and Poker. It’s mostly summary sentences that underly major points that deserve greater thought and consideration. For example, there is so much to the brief sentence: “Hesitation is worthless. Decide quickly, make your move….make it big and be prepared to change course…
The site “Stock Trading to Go” recently shared ten suggestions for newer traders to learn investing. Recall that trading and investing is different, and I lean far more into the trading camp, but I thought it might be worthwhile to link to a post regarding beginning investment ideas. To be honest, it’s not a complete…
Part of being a trader is evolving not only as the market changes, but as you change and learn new information and assimilate that information into what you already know. I’ve shied away from trading futures heavily, because of a lack of experience or comfort with that market, compared to my years of knowledge about…
Here are the charts of the Falling US Dollar Index ($USD) and a comparison to the Dow Jones Average. First, the Daily Damage (thanks, Federal Reserve): From mid-June to present, the US Dollar Index has fallen 5.70%. US Dollar Index Weekly View A weekly view tells a more dire and dismal picture for the Dollar…