As a follow-up to yesterday’s post “Respecting the Range While Awaiting a Breakout,” let’s take a look at how the range boundary came into play yesterday and more importantly, on the “expected” breakthrough of the range boundaries. Here’s a quick chart of the @ES S&P 500 e-mini futures for reference: From yesterday’s post, I referenced…
Short-term traders have been forced to “Respect the Range” behavior of the US stock market indexes as they challenge – or break – to new highs. Let’s update the current range boundaries (price levels) of the S&P 500, NASDAQ, and Dow Jones which will be helpful for additional trade planning. We’ll use the futures contracts…
One of the greatest challenges as a trader is to determine whether a trend in motion is likely to continue or reverse. Reversing a trend is a process, similar to reversing a freight train, and a stock tends to signal reversals we can see on a price chart. Let’s take a closer look at four…
Hershey’s (HSY) has a well-known seasonal pattern for share prices, notably rising for the month of February. Let’s take a look at this famous historical ‘seasonal tendency’ as part of a broader discussion of seasonal stock patterns. First, we’ll use StockCharts.com data to show the monthly performance of HSY shares in a graph: The chart…
Amazon.com (AMZN) has been a relative strength leader in the market and investors have been rewarded with a stellar, accelerating upside price trajectory. Swing traders have an opportunity to play either an “alternate pro-trend breakout” or a “logical counter-trend retracement” opportunity developing into the current $400 per share “round number” reference level similar to what…
As a trader, we make progress along our trading journey either by making a mistake and learning from it (where the lesson ‘sticks’) or else we learn from other traders’ mistakes and try not to repeat their errors. A recent article in the New York Times blog section reminds us of one of these valuable…
One of my favorite short-term trading set-ups is the concept of a lower timeframe multi-swing divergence into a known higher timeframe support level. Crude Oil finally bounced strongly off support – after extending its positive divergence pattern – and we now monitor how high the bounce will take price. Let’s take a look at this…
Club EWI just released a retrospective view of key Elliott Wave patterns, concepts, and set-ups across the broader markets (gold, currencies, crude oil, silver, and currencies) with educational insights sprinkled into the analysis. I wanted to highlight the analytical/educational post – including videos – as an affiliate of Club EWI to those who are interested…
Copper has entered a key trading decision point – namely confluence resistance – and I wanted to highlight this area along with the objective trade planning levels at this inflection level. Let’s start with a broader perspective of the current level and trend structure (JJC as an ETF proxy): For the JJC commodity ETF, we…
For intraday traders of stocks, ETFs, or index futures, it can be very advantageous to compare mini-trends in the NYSE TICK with the S&P 500 (or Dow, NASDAQ, or Russell 2000). One main way of studying TICK Trends is to spot a clear deterioration or visual trend divergence with price (the index) and the NYSE…