The VIX (Volatility Index) has now formed clear and distinct channels from which to assess current conditions. I found drawing trendlines on this chart to be difficult, and you may have your own method for drawing a trend channel, so be aware of this when looking at this chart. Right now, the VIX seems to…
I’d like to ask you a quick favor – What would you like to hear in a podcast? I’m toying around with the idea of producing a weekly (free) informational podcast and I would like to know your thoughts on what you would like discussed. Please take a brief moment and let me know through…
Although commodities recently were recently featured in the news due to their stratospheric rise, you may not be aware now that since that media blitz, these commodities have fallen in price. The “Sell the news” strategy strikes again! Let’s look at the current conditions of Gold prices and Crude Oil Prices: Gold prices peaked above…
The Dow Jones Index is trapped between two key support and resistance areas, and it will be interesting to see which force breaks first – a break of the upper level will have profound implications for the future. Notice I have drawn the proverbial “Line in the Sand,” which is an area just beneath 12,800…
With Microsoft (MSFT) and Yahoo! (YHOO) in the news lately regarding take-over bids and deadlines, let’s allow cooler heads to prevail by looking at the charts of these two stocks. It’s clear that Yahoo has been the beneficiary of the latest news, which is the cast most often for potential take-over stocks. From a low…
While some people may hate overnight gaps, others love them for their simplicity and potential profitability. Today, almost like clock-work, the US Stock Market opened with a down-gap and filled it by Noon EST. Keep in mind that yesterday’s trading opened with a gap-up that was filled also. Here is today’s Gap-Fade trade, with two…
Let’s take a quick annotation of today’s DIA action on the 5-minute chart, scanning for ideal trades of the day. First, the market gapped near over 60 Dow Points, setting up the classic “Fade the Gap” trade. Today’s gap fell about 10 cents (points) short of a full gap fade, but the initial action is…
Apple Inc (AAPL) continued its remarkable, almost vertical steady rise today, gaining almost 4% intraday before noon! Since the middle of March, Apple has been traveling upwards at neck-breaking speeds, ascending in a near 70 degree angle. The angular momentum of the stock is changing, meaning the rapid ascension may be unsustainable in the short…
Google searches for the term “recession” are on the rise, but have decreased after peaking in early 2008. How might this be of benefit to the average investor? Bill Tancer of Time Magazine recently wrote an article entitled “Googling the Recession” which compared a few terms related to “recession” that were interesting. Tancer noted that…
March was certainly the month for overnight gaps in the US Indexes! I list here the results of my monthly study of overnight gaps in the Dow Jones ETF (DIA – the “Diamonds”) to see the percentages that help determine the validity of the “Fade the Gap” strategy. Let’s look at March’s simple statistics: Of…