A lot of newer traders are drawn to double (and triple) leveraged ETFs including the inverse side, but being on the wrong side of a trade can be financially devastating quicker than most traders imagine possible. Let’s take a quick comparison of the recent moves in XLF (Financial SPDR ETF) and its double-leveraged inverse counterpart…
A reader requested a look at the XLB Homebuilder SPDR ETF and I wanted to view that on the daily chart and also take a look at the Philadelphia Housing Index ($HGX) on the weekly frame. Strength here would be most likely resoundingly positive for the broader stock market. Let’s look. XHB Homebuilders ETF: We’ve…
A couple of readers have asked about the Elliott Wave count on Crude Oil and I wanted to give a lengthy, multi-year view of the $WTIC Index to show the clean Elliott Count and possibility for the near future. Monthly Crude Oil ($WTIC): (Click for Larger Image) A complete 5-wave Elliott pattern completed into mid-2008,…
Let’s take a quick look at Apple (AAPL)’s weekly chart (including an Elliott Wave count) and a closer look at the Daily Chart’s consolidation rectangle pattern. Apple (AAPL) Weekly: I would consider this Elliott Wave count a high-probability count, but it is not the only count available. It’s also possible that this rectangle is actually…
I posted yesterday about “Crude Oil and the S&P 500 Index” but let’s take a look now at Crude Oil and the US Dollar both on the weekly timeframe. Crude Oil (WTIC): Crude Oil seems to be completing a “Rounded Reversal” pattern that I’ve been highlighting for some time now, and we’re finally getting a…
Adam Hewison of Market Club released a video last night (that was precient on today’s move!) where he discusses the ‘rhythm’ of the S&P 500, Fibonacci resistance (as I’ve been describing), and the next likely move in both the S&P 500 and Crude Oil. (Clicking the image opens the free video page) Entitled “Two Markets…
Friday brings us the infamous “Quadruple Witching” event which might be a big deal in the market, and it might not. Let’s define the concept and then look back in the past at some recent Quadruple Witching Days. Options traders know that the third Friday of every month is “Options Expiration Days” which can lead…
A couple of readers have also asked me to post the Fibonacci Confluence Levels (grids) for the NASDAQ and the Dow Jones Index currently. Here is a quick, mid-day update on these levels (which, to me, are not as clear as the confluence on the S&P 500). NASDAQ Daily Fibonacci Confluence: The grid logic is…
I’ve been pointing out Fibonacci confluence at the 800 level on the S&P 500 for a little while now, but I wanted to show a third layer to the 800 level which perhaps is turning out to be rather significant resistance. There’s no guarantee 800 will hold, but it can be helpful to know of…
With all the spastic intraday moves that resulted from today’s Federal Reserve announcement (assessment of the economy – that it is contracting; that rates will be kept low; and that the Fed will buy treasuries) there were some major moves in the Stock Market, Bond Market, Gold (and Silver) Market, and US Dollar Index. Let’s…