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 impulse […]

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.

Business […]

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 on the counter-rally up

Volume […]

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 staging a […]

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 it did not […]

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 it […]