Ok, not literally, but investors in Walt Disney Inc (DIS) have enjoyed the recent rally in 2007. While the stock remains in a confirmed daily downtrend, the famous stock may be showing early signs of new life. First, let’s look at this chart from an educational standpoint: Notice the almost rhythmic wave-like structure in the…
As we slide into the mid-day doldrums, I thought it would be interesting to look at the action in the DIA (Dow Jones ETF) so far to see some educational and trading opportunities in the price action so far. Two lessons are forefront today from a technical picture: First, the “Fade the Gap” strategy is…
Thanks to reader Dave Butcher, who recently worked with me to enhance the blogsite, you will now be able to print directly from the blog in a more professional format. When you enjoy an article and want to print the article for your archives, simply print as normal and your page will be populated only…
Hong Kong’s Hang Seng ($HSI) Index plummeted 5% today, after ejecting out of a moving average squeeze pattern following a descending triangle technical pattern. The Index fell 1339 points to close at 23,469. The frequency of gaps in the chart from StockCharts.com is due to how the software records prices and times, keeping in mind…
Recall from my previous post entitled A Little Edge is All You Need that the Vegas style casino games enjoy a very small edge to keep those millions flowing in each year. Let’s look a little more about how this relates to your own trading. Without delving too deeply, there are two simple ways to…
StockCharts.com has a wonderful tool for evaluating the relation between the interest rates (yields) and the stock market (S&P) in the Dynamic Yield Curve page. Using this tool, you can compare 3 month yields with 2 year, 5 year, 7 year, 10, 20, and 30 year treasury yields and see not only what effect the…
On the US “Super Tuesday” when almost half of the states held a primary election, the US Stock Market slid 3%, casting its vote against the major candidates. No seriously, the weak consumer services sector, which comprises a large percentage of the consumer spending category, took a major hit today, causing the markets to resume…
It’s a new month, and the market may be off to a new character change once again. There have been three trading days in February, and so far all three days have experienced an index gap, of which only one has filled so far. Let’s look: There are a few things to note in this…
Google (GOOG) dipped beneath $500 per share today for the first time since August, 2007. Google has been on an almost solid decline since early 2008, and price has depreciated 32% from its all-time high of just over $740 per share: Notice the “triangulation” action which took place from early November until the price breakout…
Traders frequently combine volume studies with price studies and indicators to gather a larger picture of where prices may be headed in the future. But 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,…