Current Market Rally Echoes a Pattern from the Past

Aug 26, 2014: 9:38 AM CST

If you look closely at the current market rally, you may see something eerily familiar.

Let’s chart the current intraday rally (as we’ve been highlighting) and compare that to a familiar friend on the chart and learn a quick lesson about technical analysis in the process.

I’m using the @ES futures contract (S&P 500) to show the overnight data.

Initially, I wanted to see how strong – how pure and persistent – this rally has been but in the process, I saw something rather interesting.

If you take nothing away from this chart, let it be that market rallies can be strong and should not be fought (strength can lead to more strength).

However, if you want to take it a step further, compare the intraday (hourly) chart of the @ES futures with this one: Continue Reading…

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Bearish Engulfing Opportunity in Altera ALTR

Aug 25, 2014: 1:28 PM CST

Altera (ALTR) showed up on two of my stock scans this morning and I wanted to share the chart both as an educational resource and a potential trading opportunity.

Let’s see the chart and discover why this stock appeared on two separate scans:

First, Altera (ALTR) appeared on my morning “Consecutive Closes” scan as the stock that has closed the MOST times to the upside in the S&P 500.

To be specific, ALTR has closed higher 11 days in a row.

I’ve been including daily results of this scan in the Daily Membership report (it provides aggressive yet short-term trading opportunities).

The 11-day consecutive rally has taken price from the lower Keltner Channel ($33.00 level) to the current location above the upper Keltner Channel ($35.00 per share).

There’s another reason we’re interested in this stock – see if you can discover it before I reveal the answer: Continue Reading…

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August 25 Breakout Market Update and Stock Scan

Aug 25, 2014: 12:30 PM CST

Well there we have it!  It’s official – the S&P 500 achieved the 2,000 Magnet target.

We now ask the question “Did buyers use up all their fuel to push the market into this level?”

Let’s take a look at the charts, breadth, and highlight our trending stocks of the day.

I’ve repeatedly stressed the “Repeat Pattern” in the S&P 500 to members (and the open blog) recently and for good reason – the market traded up exactly as would be expected according to the “Repeat Pattern” thesis (it was very successful).

Studying the “Repeat Pattern” that Forecasts New Highs for the S&P 500 (achieved!)

“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

So here we are – either price skyrockets through this level on a “Short-Squeeze,” or perhaps more likely we see a Bull Trap trigger with a reversal down against 2,000.

Note the clear negative TICK divergence which argues for a trap-and-collapse scenario.

Either way, we’ll focus all our attention on the 2,000 index level. Continue Reading…

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Charting Apple AAPL Through the 100 Dollar High

Aug 22, 2014: 11:08 AM CST

Last week I posted about “Open Air” and magnet levels in Apple – let’s update the chart now to focus our attention on the $100 per share level (now achieved) which has served as a floor of support.

Here’s the Daily Chart with the progression to the new highs:

First, start with a little background on the “Apple Through Value Areas/Magnet Levels” post from last week.

It targeted a distant “Magnet Area” into $100 as long as price remained trading above the $95.00 Magnet Level.

Indeed, this outcome occurred a bit faster than expected (price simply moved through an “Open Air Pocket”) and not only have shares achieved the $100 simple target level, but they just exceeded them strongly today.

Despite two doji reversal candles into the upper Bollinger Band this week, buyers triggered a short-squeeze and continued the multi-day rally up from $94.00 through $100.

While there were progressive negative momentum and volume divergences, buyers stepped up with higher activity during the recent August rally (green highlight). Continue Reading…

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August 21 Stock Market Update with Trending Stock Scan

Aug 21, 2014: 12:51 PM CST

As we continue yet another trend day to the upside, let’s highlight the price action, sector strength, and identify the strongest trending stocks so far at mid-day in the bullish session.

We’ll start with the S&P 500:

I’ll let the chart speak for itself but will again reference the series of posts I wrote leading to this point:

Studying the “Repeat Pattern” that Forecasts New Highs for the S&P 500 (achieved!)

“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

We’ll be carefully watching news for the rest of the day as the indexes trade through new highs (the S&P 500 seems to be pulled higher like a magnet to 2,000… or perhaps a moth to a flame). Continue Reading…

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