As a trader, I’m drawn to key price or trendline inflection points that generate simple “IF/THEN” strategy planning events depending on how price interacts at a critical reference level. At the moment, Amazon (AMZN) shares are trading down from a critical inflection point that will set the stage for short-term trading strategies for the stock….
Was the big breakout this morning in stocks a surprise or was it part of ongoing visual trends in broader money flow across the intermarket landscape? Let’s look at the charts stretching back to late 2012 to see patterns and short-term insights into cross-market money flow: As a proxy for “Money Flow,” we’re viewing the…
I wanted to highlight a curious situation with Market Internals in respect to the recent breakthrough above 1,600 in the SP500 (and 15,000 on the Dow Jones) and note the message from Internals. While internals are always secondary to price, it’s still important to listen to the message sent by the number of stocks advancing…
What looks like a “can’t miss” trading opportunity on one timeframe may be an equally compelling “can’t miss” opportunity on a higher timeframe, but in the exact opposite direction. In other words, what looks like a grand breakdown opportunity on a Daily Chart may be a high probability bull-flag retracement set-up into support on the…
A member asked me about the relatively low intraday TICK readings on Friday’s big breakout above 1,600 in the SP500 and 15,000 in the Dow Jones and wondered why the TICK did not spike well above 1,000 on the opening gap and intraday breakout higher. For example, the NYSE Intraday TICK high on an ohtherwise…
The main chart-based theme is that the SP500 is trading into the “Will it or Won’t it Break” key level of 1,600, so let’s take a quick peek at Breadth Market Internals to get clues beyond what price is telling us. First, the broader 30-min intraday picture: I’ve highlighted three prior days where Market Internals…
I wanted to highlight an interesting pattern that emerged from a quick comparison of the 2003 – 2007 Bull Market to the present Bull Market beginning in 2009 (and extending indefinitely at the moment). Let’s see what possible price pathway may be in store if history is a guide, while being impressed at the similarities…
After a large impulse, it can be helpful to draw a Fibonacci Retracement grid to get a sense of potential target levels or short-term inflection points paricularly for intraday traders. Let’s take a quick look at a simple confluence Fibonacci Retracement grid for the current rally or ‘bounce’ up in gold (@GC Futures): I drew…
While we may have heard headlines discussing the out-performance of “Defensive” Sectors, let’s take a brief moment to view the updated Sector Rotation charts and pinpoint where the money is flowing in terms of broad sector performance. Let’s start with a Line Chart and then move to finer details: We’re seeing StockCharts data (PerfChart) with…
Traders may have been surprised by the strength of the recent upside gaps in Microsoft (MSFT) and especially Netflix (NFLX) which shattered daily resistance levels into “Open Air” territory. Let’s put these strong upside gaps into the context of the Weekly Chart and broader trends and gather insights from the higher timeframe structure and levels….