The $VIX (Volatility Index) is bouncing off new lows for 2008 in a sign that traders and funds have become less fearful in the current market environment. Perhaps they are unwinding their hedges or engaging in some sort of risk-seeking or ‘cooling off’ period, but it is interesting to note that it took the VIX…
I was quite impressed by the strength of the bears in swiping the US Indexes lower on Wednesday, giving the bulls only a marginal chance for any sort of retracement. I recommend saving today’s charts for the files under “strange price action” for future review. Let’s look first at the DIA: Price made its intraday…
Are the Indexes at Support or Resistance? Today’s action would lend to the “Resistance” camp, but let’s take a closer look. Let’s start with the daily chart of the Dow Jones Index: With this chart, I have Resistance plotted via two areas: 1. The declining 200 day moving average 2. The horizontal trendline via prior…
Although it’s not discussed extensive, the Yield Curve has now normalized to levels that have historically preceded large bullish moves for the overall market. The last time this pattern occurred was in 2003. Bill Luby at VIX and More recently identified this pattern as well with a good, brief analysis in his post “The Yield…
Wow! What an interesting day it was for active traders. Yet another gap was filled and a sort of unexpected trend day emerged. Let’s look! Dow Jones ETF (DIA) 5-minutes Today opened with a sharp intraday gap down, which spent the first 10 minutes continuing downward. I prefer to wait for 3 bars (15 minutes)…
Today marked yet another opening gap that filled in the major US Stock Market Indexes. Gaps are one of my favorite opening patterns to play because they can provide a dual edge for traders. By ‘dual edge’ I mean they can provide a higher % win rate and also generate more profits when correct than…
Microsoft officially withdrew its offer to acquire Yahoo, after Yahoo continued to hold out for a higher offer. The fall-out from this decision has already begun. AP Business writer Michael Liedtke reported Yahoo (YHOO) stock plunged 15% this morning, yet it is recovering some of its gains. “The sell-off wiped out nearly half the gain…
Apple Inc (AAPL) continued its winning streak into May after rising from $120 in March to $180 in May. It’s rare when we see a stock carve out the pattern Apple has, and so we need to look at this pattern to learn from it now. After plunging almost 50% in early 2008, price built…
With Candlestick analysis becoming more popular and accepted, I thought it would be interesting to take you inside a Dark Cloud Cover candle pattern. Let’s peek inside the candle. I mentioned that Google recently formed a Dark Cloud Cover pattern. Let’s discuss it before we see it. A “DCC” is a reversal pattern that must…
Google Inc (GOOG) has been on a powerful move up, surging from $440 to $600 in less than a month. Following the upside $80 gap recently, the stock has impressed investors by adding another $80 points since the gap. But let’s look at the current action to see if this is sustainable. The price action…