Without getting too deep in explanation, let’s look at the technical picture of Gold, Oil, and the US Dollar Index on the daily charts: First, the plunging US Dollar Index: On to Light Crude Oil (one barrel): Finally, Gold Contract Prices (one ounce): Finally, let’s compare the relative performance of these markets (from 180 days…
Bear Stearns (BSC), one of the major US Financial companies, lost half its value intraday today on concerns that the Fed’s recent liquidity injection “might not work” for the company. Instantly, the Federal Reserve voted unanimously today to provide cash to help this crisis, and stands ready to inject more as needed. As reported by…
Sears Holding (SHLD) has taken a severe punishment from investors since 2007, falling from an all-time high above $190 to a recent three-year low beneath $90. While the chart itself is educational from a trend and retracement perspective, I wanted to highlight a few points during the decline. First, there were two significant events that…
I wanted to post the amazing gap fade that took place earlier today: The morning started with a large volatility (150 Dow point) gap as the economic news was very bearish this morning (oil and gold at new record highs, signaling inflation, and a larger than expected drop in retail sales). The market, however, shook…
Yesterday’s intraday action took prices to the falling 20 day moving average, and the resulting close formed a candlestick pattern known as the “shooting star” which happened to form at this key resistance zone. What was the result? A powerful move to the downside this morning as the psychology represented by this pattern played out….
Last week, I was introduced to a new site called NewsFlashr, which was developed by the creators of the amazing Instant Bull stock market news/information website. NewsFlashr allows you to view headlines on selected topics quickly and easily, on such areas as World News, Politics (including the 2008 elections and primaries, which I follow daily),…
Let’s look at the 5-minute chart of the price action in the stock market during yesterday’s trend day: The initial gap was about a 200 Dow point ($2.00 DIA) gap, meaning odds were strongly against a full gap fade, and actually favored that a trend day was setting up. Even still, the first trade is…
Before you get ultra bullish, realize that the sharpest volatility price moves to the upside often occur during a bearish downtrend. That’s likely what happened today. The day began with a strong upside gap in all US Indexes, and proceeded to a near 50% gap fade, followed by a strong surge of buying power (combined…
I think the Market shocked a lot of people today by making such a large volatility upwards price move, both in reaction to the Fed announcing a $200 Billion stimulus package to help the credit crisis, and by shorts covering to avoid being steamrolled (combined with new longs buying in anticipation of a bottom –…
Apple (AAPL) has fallen from $200 per share to $115 in two months – a mammoth drop for such a strong, newsworthy stock. Let’s look at the charts to see what might be ahead next. Notice in early November 2007 how the large volatility price move sent shockwaves through the stock, and led to a…