Reader Glyn recently asked me to give my thoughts on the technical picture of a few stocks he is watching, including whether or not a possible triple top is forming in some of these candidates. The stocks are Amazon (AMZN), IBM (IBM), Best Buy (BBY), and the China ETF (FXI): Amazon.com Inc: Observations: Double Top…
I recently came across the following deep and interesting link on StockBee‘s site, in reference to an article by Matthew Rees entitled “The Hunt for Black October.” Author Rees discusses various perspectives from the events leading to the major 20% decline in the Dow Jones Average on “Black Monday,” October 19, 1987 and includes many…
With the recent declines of February and August 2007, many traders – who were rapidly making money – experienced deep fear and losses and may now approach the financial markets differently as a result of these ‘shock’ declines and potential major account losses. It only takes one or two instances where you are shaken to…
Richard from Move the Markets provided a detailed post earlier this year entitled How to be Consistently Profitable in the Markets which absolutely deserves reading and further study. Without stealing too much of his thunder, Richard begins his discussion with the popular topic of Expectancy and provides a new calculation for the concet which eliminates…
In the past, I provided various examples of “Swing Charts” which focus mainly on price, momentum, and connected swings in the market. Here, I provide a few examples of the current swing perspective of the Indexes and overlay basic market structure patterns to the indexes: The Dow Jones Weekly Structure: We see three changes in…
What we thought was a significant support level was decimated by the weakness of the Jobs Report released Friday morning. The Indexes turned from a ‘hair of bullishness’ back to certain bearishness. Recall that all indexes are in confirmed downtrends on the Daily Chart (lower highs and lower lows). The ‘wind of the market’ from…
Folks, trading is NOT an easy game, especially if you are trying to predict the market and follow what seems natural to you. For those of you who are following the news regarding the “housing crunch” and “credit crisis” that has plagued the market recently, how many times have you heard about the dismal state…
Let’s take a quick look at the current position of the Major US Indexes: The Dow Jones: Dow just a hair above the 20 and 50 period EMA Dow just a hair above two converging trendlines Dow above a frequently tested ‘line’ that has served mostly as support Position of the 20 and 50 period…
Dr. Bruce Hong at Trader Psychology recently detailed to us four levels of belief in his post “Belief“. Beliefs follow the following four-step progression: 1. Opinions 2. Belief 3. Conviction 4. Core Conviction Not only do these principles apply in the market, but in various interpersonal communication, including miscommunication as a result of a failure…
I wanted to highlight a key potential resistance level in the S&P 500, which has been tested both to the downside and recently to the upside. This level appears to be holding again. The level is 1490. Notice that there should be support from key moving averages below price currently… but there is significant resistance…