The intraday index action today provided some ideal opportunities within the price structure that could have led to profits. Let’s check out the Dow Jones: First, the day started out with a relatively small overnight gap, and the first play of the day was to fade the gap back to yesterday’s close. Once that downside…
The Dow Jones Index this morning (along with the S&P 500) formed an ideal ‘gap fade’ play which then set up a positive momentum divergence. Let’s see the chart and figure out how we could have taken advantage of this situation. The overall structure is in a strong downtrend, but the most recent price swings…
While radio listeners and investors are anxiously awaiting word from the FCC on the approval for the recent proposed merger of Sirius Satellite Radio (SIRI) and XM Satellite Radio (XMSR), I thought it would be prudent to look at the charts briefly to see where these stocks have travelled and what may be in store….
Before we start the upcoming trading week, let’s look at the S&P 500 Index from a brief technical perspective. A few quick observations: There is a positive momentum divergence forming The 1,260 – 1,270 price zone has provided solid support The 1,400 zone has provided solid resistance Volume increased on the recent downswing and decreased…
Let’s take a quick look at the nine major AMEX Sector SPDRs to determine what’s happened so far in 2008: With the S&P 500 down 10.5% for 2008, only two sectors have performed worse than ‘the market:’ Technology has fallen almost 16% for the year (thanks to Google, Apple, and others – who may be…
Friday’s action in the US Indexes represented a typical “Trend Day Down,” which provides opportunities for excellent profits with minimal risk. How do we trade trend days? Let’s look at the DIA (Dow Jones ETF) as a proxy to see some opportunities: First, I must say that this was not a ‘classic’ trend day because…
According to the New York Times article today, the Treasury Department is proposing that the Federal Reserve receive bold new powers to stabilize potentially shaky financial markets. Edmond Andrews reports that “The Treasury Department will propose on Monday that Congress give the Federal Reserve broad new authority to oversee financial market stability, in effect allowing…
I was inspired by a recent article in my local paper entitled “What Then Must We Do?” which tackles the sense of ‘loss of control’ or uncertainty that is so common to stock market participants. Author Bonnie Roberts of The Valley Planet pondered a list of 45 humorous points that were completely out of her…
The US Dollar Index continued its downtrend recently, by failing to overcome resistance via the 20 day moving average. The 20 period moving average (especially along with the 50 period moving average) has provided a barrier that is too significant for the ‘dollar bulls’ to overcome with any lasting success. The recent rise (counter-trend swing)…
Today’s intraday price swings were smooth, pronounced, and stable. It was an ideal day to be an intraday ‘swing’ trader. By ‘swing’ trader, I mean simply trying to capture the market’s most probable sustained price action in one direction until that direction is reversed by the opposing force. The trend was down overall, but there…