Aug 20, 2014: 5:45 PM CST
Sometimes the simplest scans can provide stock candidates to trade that we otherwise may never have spotted.
Here’s the results of today’s “Most Closes in the Same Direction (up)” scan from TradeStation:
Lesser-known stock Illinous Tool Works (ITW) has closed 11 days higher – that’s worth a closer look:
We can see shares trading back up into the resistance target of the prior high from June ($90 level).
Notice the secret straight-up rally from the $81.00 level into the current target.
Very aggressive traders may view this as a “short an over-extended stock into resistance” opportunity and that would be the logical thing to do.
However, a breakout beyond the $90.00 level triggers a bullish breakout potential opportunity which could extend this 11 day streak. Continue Reading…
Aug 20, 2014: 2:24 PM CST
With stocks breaking out, it may be a surprise that the US Dollar Index is also breaking through resistance.
Let’s take a look at the Dollar Breakout and highlight target levels and points to watch:
The Dollar formed a “Rounded Reversal” pattern with divergences into the $79.500 level (as seen on the @DX Continuous Contract).
Price broke to a new swing high in June to form a higher low – the first two steps in a Trend Reversal – ahead of July’s breakout.
Now, we see a resistance breakthrough above the $81.750 level which continues a three-day movement of bullish strength.
In sum, the Dollar may be poised for even higher prices into the “Open Air” territory. Continue Reading…
Aug 20, 2014: 12:52 PM CST
I’ve been posting frequently about the potential “Repeat Pattern” in the S&P 500 that charts a price pathway straight up toward new highs.
With price mere points shy of that target, let’s step inside the price action (per reader request) and peek behind the scenes as to what happened during the prior two “Repeat Patterns.”
We’ll start with a broader picture comparison and then drop down individually next:
To get a sense of what we’re seeing in the three charts above, take a moment to start with the prior updates:
“Onwards and Upwards to New Highs for the S&P 500″
Planning a Breakout (from a Repeat Pattern) in the S&P 500
S&P 500 “Breaks on Through to the Other Side
Decision Point for the Dow Jones
With those as your backdrop, now we can look inside the prior retracements and rallies that took price back to the prior high and then beyond it.
All we’re doing is comparing the current (August) pattern with the two most recent patterns in April and January.
In fact, when we pull them apart, we can see the individual movement that created the patterns: Continue Reading…
Aug 19, 2014: 10:36 AM CST
John Carter is launching a new, specific venture for you entitled “Simpler Stocks” as a sister site to his option-specific “Simpler Stocks” site and he’s conducting a new webinar entitled “Trading ETFs for Protection, Profit, and Peace of Mind” – or simply titled “The Three P’s” Presentation!
The “Protection, Profit, and Peace of Mind” webinar will be live August 19th at 8:00pm EST:
The image above will link you directly to the registration page where you’ll just need to provide your first name and email to register for the new training.
You’ll need to register for this webinar even if you’ve attended similar webinars with John Carter in the past or through Simpler Options educational content.
When I first started trading, I traded individual stocks and then transitioned into sector then broader market ETFs.
I’m excited to see what John will be offering the trading community as he simplifies his strategies for using ETFs for income and profit goals.
I’m a long-time student and now colleague (and affiliate) of John Carter’s work and am thrilled to support him in this new endeavor.
Aug 19, 2014: 10:30 AM CST
On better than expected earnings, retail stock Home Depot (HD) gapped higher, breaking to all-time highs through a ceiling of resistance.
Let’s take a look at the breakout and note how far Home Depot has traveled in a short amount of time.
Here’s the Daily Chart with the Breakout:
Shares actually broke free of a resistance level – a Symmetrical Triangle Price Pattern – above $82.00 per share and continued the bullish impulse into the $84.00 level.
Today’s pre-market earnings boosted shares above the breakout into a trending impulse well above the $84.00 prior high level.
Let’s pull the perspective back to get a sense of what’s happened previously chart the strength of the current trend: Continue Reading…