Three Surprisingly Bearish Breakdown Stocks on the Big Bullish Day

Sep 27, 2017: 4:09 PM CST

If you looked at the stock market’s strength and new intraday high today, you’d likely think all was well with the stock market.

In fact, three major stocks in the S&P 500 surprised us with big intraday bearish action today and it warrants your attention.

Let’s pinpoint the surprising bearish liquidation action hidden with the bullish price action of the broader market:

Ge General Electric

Perhaps the least surprising of today’s bearish stocks was General Electric (GE) which closed down 2%.

Shares on the daily chart remain in a downtrend and price triggered a retracement sell signal on the underside touch of the falling 50 day EMA.

Volume increased on today’s sell session.

Coca Cola KO

Next up is Coca-Cola (KO) which also fell 2% today on a price breakout action.

Shares initially held support at the $45.50 level until today when traders liquidated positions, collapsing the price toward the prior swing low.

It took just over one week to eliminate the upward price action that developed since July.

Shares are now in a sideways trading range with bearish undertones.

Proctor and Gamble PG

Finally, Proctor and Gamble (PG) surprised us with a second big 2% sell-session.

Shares fell sharply from the $94.00 high on a lengthy negative volume divergence.

Sellers continued their campaign with a big sell session similar to that of September 21.

Continue studying these names as you do your evening analysis, noting that many traders may miss these bearish shadows on an otherwise bright bullish day. Continue Reading…

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Big Price Movement in our Quad Intermarket Grid Today

Sep 27, 2017: 3:56 PM CST

With stocks pushing up to a new all-time high, what’s happening in our Quad-Market Grid?

Simple – let’s take a look at the recent action and note the ongoing trends in motion:

With the @ES (S&P 500) breaking to new highs today, note the sudden sell-off in Gold.

Gold tumbled from its early September high to a new swing low beneath $1,300 per ounce.

At the same time, boosted in part due to the hurricanes, Oil rallied higher with the stock market to close at a new swing high above the $51.50 key level.

The US Dollar – long-since downtrending – snapped the short-term downtrend in September roughly when Gold prices peaked.

Note the Mirror Image (inverse correlation) with the Dollar and Gold.

While we don’t see it above, US Treasuries sold off sharply along with Gold.

Even if you don’t trade these markets, it’s helpful to check what’s happening behind the scenes as to where money is flowing in the broader markets. Continue Reading…

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Critical Support Shelf Play in Amazon AMZN Right Here

Sep 26, 2017: 1:17 PM CST

Amazon (AMZN) shares tumbled from the (almost) $1,100 peak in July and have remained weak.

Let’s pinpoint a critical price point that will be key to trading the next swing for this popular stock:

AMZN Amazon

We’re dangerously close to forming a Head and Shoulders price pattern with a neckline at the $940 level.

Buyers continue to hold support – and create rallies – off this critical price target.

With reversal candles developing here today, we’ll hold our dominant thesis to expect another bounce.

However, if bears gain control and crack price beneath $940, expect a quick liquidation event toward the rising 200 day SMA (red) near $910 per share.

If you’re playing options, swing trading, or day trading this big name, frame your next decision in terms of the departure away from $940.

Come join us to learn these tactics (beyond this simple/quick update) and have an evening game plan you can use effectively for the next trading day. Continue Reading…

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Get Your Copy of the Big Book of Pro Trading Strategies Today

Sep 21, 2017: 4:15 PM CST

I’m excited to announce that I contributed an in-depth chapter to the new “Big Book of Professional Trading Strategies” which was just released.

You can grab your own personal copy free!

Big Book of Pro Strategies Free

I discuss the “TCZ Trend Confirmation Trading” Strategy for you as my contribution.

You’ll also learn tactics, trade set-ups, information, and ideas from 17 other professional traders as we share our favorite trades with you.

Don’t miss out!  This strategy guide is free for now.  Download your copy here.

I’m honored to contribute to this strategy guide and hope you pick up a few new actionable trading ideas from it!


Continue Reading…

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Market Slams First Support Target on Volume Profile Chart

Sep 20, 2017: 1:36 PM CST

If you made note of yesterday’s “Professional Volume Profile ‘Look Out Below!’ Levels” post, you’ll be happy to note that the Emini trades RIGHT at our first target now.

Here’s today’s updated Volume Profile (at price) Chart with these key target levels:

Volume Profile

Thanks to Think or Swim’s Volume Profile Study, we can pinpoint which exact levels where volume has traded with price – and more importantly for us, where it has not.

This is similar to Market Profile logic with the vertical distribution but it takes into account volume traded at specific prices.

Namely when the bars on the right side of the chart are longer, MORE volume transacted at that price.

Conversely where the bars are smaller, less volume transacted at that price.

We can consider the larger-volume areas as “acceptance” or support/resistance levels and the lesser-volume areas as “open air” where price traveled quickly without transacting many contracts (volume).

As you saw in yesterday’s post, IT MATTERED because the market just plunged through “Open Air Pockets” (no volume/no support).

Right now we’re trading off the 2,493 Red High Volume Node from yesterday’s chart. Continue Reading…

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