As we wind down August 2010 and get ready to start a new month soon, let’s take a quick overview look at the daily charts of leading financial fund XLF and its popular double-short (double inverse leveraged) fund SKF. There’s some interesting things to note. First, the XLF Daily Chart: Starting with what jumps off…
I was getting ready to write a book review for Mike Bellafiore’s new book One Good Trade (Wiley Finance) and then came across this article from Mike that I thought was fun to share: “My Book is Sold Out! A Social Media Tale” First, let me say congratulations to Mike Bellafiore for that accomplishment, and…
If you incorporate any type of political forecasting into your investment or trading decisions, now might be the time to start thinking about the make-up of Congress when the United States votes in November – recent commentary and analysis reports show there could be big changes that you need to be factoring into your decision-making…
From a pure price standpoint, as I highlighted recently in the post “Pure Price Levels to Watch in the NASDAQ, Dow, and S&P 500,” the levels I highlighted came into play in a major way on Friday, with the market sell-off stopping in its tracks at the key test of the 1,040 level in the…
Sometimes it can be very helpful to pull off all the indicators on the chart and look at a pure price chart in order to gain a perspective of what price levels hold the most significance at the moment. That’s what this post is – a price purism look at the three major US Equity…
India’s Nifty 50 stock market index – symbol $CNXN in StockCharts.com – has been outperforming the S&P 500 not just in 2010, but off the March 2009 stock market lows. There’s a helpful indicator or tool that doesn’t seem to be discussed all that much anymore that reveals comparative strength between markets. It’s the Relative…
Ouch – Starbucks (SBUX) shares shattered confluence support this morning, both on the weekly and daily frames. Will the sell-off materialize that this support break suggests? Let’s take a look first at the Weekly frame: First things first – there was a persistent negative momentum and volume divergence (lower indicators) that undercut (failed to confirm)…
Perhaps there should be a disclaimer for traders in Potash (POT) stock: “This stock is for Risk-seekers only.” Why’s that? Over the course of the last three years, Potash shares skyrocketed from $40 per share to peak at $240 per share – a 600% increase – only to plunge 80% in less than half the…
I’m pleased to announce that John Forman of the Essentials of Trading recently made available the work he’s been compiling for the Trader FAQ Project. What is the Trader FAQ? Over the last few months, John gathered a list of top questions he has received from new and developing traders over the years and compiled…
It wasn’t long ago -August 6th to be exact – when I highlighted the exact same concept I’m about to show in this post – in regards to the ‘warning signals’ given prior to an afternoon intraday reversal. Be sure to read my prior lesson post: “The Four Early Warning Signals Given Before the Intraday…