Rising and Falling Wedges are one of the most interesting patterns in technical analysis. What distinguishes them from triangle consolidation patterns is that price forms an upward or downward sloping coil that leads to the price move. Here are two examples of the Rising Wedge Pattern, with the first being an Idealized Representation while the…
2008 was a record-setting year in many ways. Volatility reached extraordinarily high levels and the broader US Equity Indexes lost 40% in a single year as the Credit Crisis spread to the broader economy. Let’s focus in on Gaps for the moment and form composite stats to see how the Gap-Fade strategy fared in 2008,…
The start of February means it’s time to examine the raw statistics on the monthly “Gap Fade” numbers in the DIA (Dow Jones ETF). Remember, we consider a ‘gap’ to be at least $0.25 in the DIA and define a ‘gap fill’ as an opening greater than $0.25 up or down when the price equals…
January did not get 2009 off to a great start. Let’s break down the S&P 500’s 10% loss by sector and see what clues the Sector Rotation performance in January might be offering us. Sector Rotation (AMEX Sectors) absolute performance in January: We’re seeing a negative picture across the board – not one major Sector…
Here’s the latest update from me as the Editor of the NewsFlashr Business Blog “Editor’s Choice” page. Barry Ritholtz provides us with a graph detailing the main Sectors in the S&P 500 and notes their performance in January. Worst January Ever. Also, he summarizes an article from Reinhart and Rogoff that states to “Expect a…
I wanted to point out a potentially significant structural change in price that developed today before the close. We have a confirmed Rounded Reversal on the 15-minute chart of the DIA which is setting up confluence support. DIA 15-min chart: Rounded Reversals can be significant because they highlight a clean shift in the balance between…
Crude Oil prices, as seen by the $WTIC, have found significant support near $40 per barrel and may be forming a rounded reversal pattern on the daily chart. Let’s see this development. Crude Oil ($WTIC) Daily: Remember that $40 per barrel was significant resistance in 2000 and 2003, which was broken in 2004 that set…
Today marked a very rare and interesting outcome in the major US Equity Market ETFs: QQQQ rose 1%, SPY was unchanged, and the DIA fell 1%. Let’s look at this and try to see what happened. Intraday Percentage Performance SPY, DIA, and QQQQ: The chart is a little off to account for the gap. The…
It’s time to update the Elliott Wave count and see what might be happening in the S&P 500 and how we might manage risk accordingly. Possible Elliott Wave Interpretation on the S&P 500 Index: This count assumes that the larger Third Wave has indeed completed. Refer back to my December post that asked “Which Elliott…
Adam Hewison of the Market Club released a video that walks you through three specific trades taken by the ‘trade triangle technology’ which also explains how to use higher timeframes to filter signals from shorter timeframes to create a potentially more profitable trading campaign. Entitled simply “The Euro and the US Dollar,” Adam does more…