Recent price action confirms a downward break of consolidating trendlines on the 30 Year Bond futures (USM07), combined with a New Momentum Low, forecasting lower bond prices to come (and also higher bond yields).
Both outcomes (lower bond prices and subsequent higher yields) often isn’t the best scenario for the stock market, yet we’ll see if current action continues.
(TradeStation)
“Stocks which are weak tend to get weaker.” Twitter (TWTR) continues to demonstrate the power of this simple statement for traders. It’s extremely tempting to find a weak stock and try to trade a reversal, but it’s more profitable to find a trend and ride it for all it is worth. Let’s chart the Weekly…
The prior “Arc Update” posts have generated a lot of attention, and I wanted to continue that series with updated charts that answers a question that a few readers have asked:
“What would the arcs look like on Logarithmic Charts?” instead of the default arithmetic charts I’m showing.
Reference back to the prior updates for comparison, especially:
While “The End is Near for the S&P 500 Triangle,” we’re also seeing the end of a similar pattern for Crude Oil. If you like trading breakouts or Triangle Patterns, you may have an opportunity soon to do so in both markets. Here’s a similar pattern setting up in the Crude Oil futures (@CL) contract…
As we chart the US S&P 500 (and related ETFs) flirting with more all-time highs, let’s compare the US strength with three countries whose related ETFs are also at similar new highs. We’ll start our adventure around the world with India (INDY): This post is designed simply to highlight these country ETFs and their bullish…
Let’s take a quick look at our ongoing intraday Fibonacci Grid along with key Market Internals to plan potential price pathways going forward. Here’s our intraday grid at the moment (note the key level): We’ll focus like a hawk on the 1,950 index level. Note the very slight Market Internal divergence into the 50% Fibonacci…
You’re probably aware of the large price breakout in defensive bond ETFs TLT (20+ year) and IEF (7 – 10 year), but it’s always worth reviewing along with current price levels to watch for support or a reversal signal. Let’s start with the daily chart of the popular TLT fund: Investors can turn to TLT…