Let’s take a rapid look at the major US Indexes as we start the new week: First, the NASDAQ Daily: Bullish Divergence preceded the recent 200 point rally (divergence is now complete) Price rests at the falling 20 period MA – bearish Price is in a confirmed downtrend Volume has accelerated majorly and has made…
Pulte Homes (PHM) was one of the major homebuilder stocks to suffer major losses during 2007, but 2008 has shown a dramatically different picture for this homebuilder stock. On the shorter daily time frame, notice the discreet momentum divergence that proceeded the major rally. Recall that at the birth of a new trend after a…
According to the Sector Rotation model, a bit of bullishness may be underlying the recent market moves. Let’s see: As of early January 2008, funds have been taking money out of Energy and Technology stocks (which were major winners of 2007) and are pouring it into the beaten down Financial and Consumer Discretionary Spending Sectors,…
The technology world is abuzz with headlines today! Yahoo Inc (YHOO) may be acquired by Microsoft (MSFT), which sent shares soaring, while Google Inc (GOOG) missed earnings expectations and plummeted. Before looking at the charts, let’s look at the headlines: From Yahoo Finance: Microsoft makes $44.6 Billion Bid for Yahoo Yahoo’s stock, like the up…
As per reader request, I conducted a quick summary of all gaps in the DIA (Dow Jones ETF) for the month of January to see what would have happened if a trader faded all gaps. The question is the following: How many days in January had overnight gaps in the DIA (Dow Jones index), and…