With the market tilting toward the “Breakout” or “Melt-Up” outcome I highlighted in this morning’s post, let’s dig a little deeper to find which stocks are participating with the bullish money flow (or short-squeeze bearish stop-losses) and focus on the leading stocks (and avoid the laggards). Let’s view the chart below and take it step-by-step…
Right now we’re playing the “Will it really break out or is this just another Bull Trap?” game with our trades and analysis. Let’s step inside the market quickly to view what’s going on underneath the new price highs. Here’s this morning’s S&P 500 futures (@ES) intraday chart at the highs: We’re seeing the @ES…
Quite simply, what we THOUGHT was a Sideways Range was NOT actually a Sideways Trading Range. What’s changed our thinking and what does it mean about the current state of the coiled stock market? Let’s take a look: First, let’s build off an assumption that we’re challenging. I’d multiple times recently assumed that the S&P…
What’s going on behind the scenes of the stock market today as a possible Bull Trap stuns (or perhaps doesn’t surprise) some traders with a failed breakout and range day? After yesterday’s big trend day session, price couldn’t continue the momentum today and a clear range evolved. Let’s take a look at the current picture…
There’s a quick and easy way to chart Volatility and assess whether we’re in a low or high volatility period and what’s likely to happen next in the cycle. Price alternates between periods of High Volatility to Low Volatility and it’s important to adjust your expectations and trading strategies as necessary. Let’s see one of…
Wednesday saw a huge impulse movement for Gold into a key target. What happens if Gold breaks through the current key target resistance level? Let’s highlight our key levels and plan for the immediate future: A quick look at the Daily Chart shows a recent sideways consolidation between $1,180 and $1,220. Note the Fibonacci Retracement…
2015 so far has given us two tight range consolidations in the S&P 500 and we’re potentially nearing the end of the second coil. We’re on “Breakout Watch” where “Any Day Now” we can see a possible breakout event. Let’s highlight our key levels and plan for the inevitable future breakout: Price alternates between two…
What happens when price rallies into resistance with declining (diverging) volume? Let’s step inside this situation for clues on how volume can you anticipate a reversal… or at least suspected that ‘things aren’t quite right’ with price. Let’s step inside the Dow Jones Index on the 30 min chart: Price began a large momentum burst…
One of my favorite intraday patterns is the bull and bear flags. How do you identify and then trade these patterns? Let’s focus just on the bull flag for this post. Why do I like this pattern? It is relatively simple to identify, only uses price (no complex indicators), and the stop-loss along with profit…
Traders frequently combine volume studies with price studies and indicators to gather a larger picture of where prices may be headed in the future. In the futures market, traders can utilize signals from Open Interest in combination with price and volume for and enhanced picture. Open interest for any futures contract, be it index, agricultural,…