If you’ve been caught in the day-to-day activities of your trading, take a moment now and look at the larger picture of the primary (or broader) trend of the major US Stock Market Indexes – the S&P 500 chart looks eerily similar to the beginning of the 2000-2001 decline. Let’s look quickly at the Fibonacci…
Monday’s trading was surprising both to bulls and bears – opening with a large overnight gap which was quickly faded, and price closed near the lows of the day. Let’s look at the structure and possible trading opportunities that presented themselves. DIA 5-min chart: With price opening with an overnight (over-weekend) gap, odds are favorable…
We have all heard the headline reports about energy prices skyrocketing in 2008, but what have the other commodities been doing in terms of percentage returns? Let’s take a quick look at Agriculture, Metals, Energy, Livestock, and the CRB Index for their standing now that half of the year has passed. Commodity Percentage returns so…
Adam Hewison of Market Club recently released a brief educational video that details the fall in these stocks and what it might mean for the larger picture in his video released today entitled, “Freddie Mac and Fannie Mae: Twin Disasters.” Hewison states in a post accompanying the video: “Even after Treasury Secretary Henry Paulson made…
As mentioned previously, Gold prices broke out of a triangle consolidation pattern and now appear headed to their price projection target of $1,000 per ounce. Let’s see how this is possible. First, gold prices have clearly entered a consolidation pattern, no matter how you draw the trendlines. Price swings are overlapping and truncating at closer…
Friday’s action was important, in that breadth declined to new lows for the year, which certainly isn’t good news for the bullish camp. Let’s look at a few charts and different perspectives on what this might mean. First, the weekly chart of the NYSE New Highs minus New Lows overlaid against the backdrop of the…
Friday’s intraday action in the major US Indexes was nothing shy of stellar, given all the potential economic turbulence that set-up during the day. Let’s look at the DIA – Dow Jones ETF 5-minute chart: The day opened with news that Freddie Mac (FRE) may be in severe trouble, and then rumors of a financial…
Dr. Steenbarger detailed the notion of the “Small Edge” in his recent post “Small Edges, Consistent Returns.” In the post, Dr. Brett runs a variety of scenarios through Henry Carstens’ P&L Forecaster to compare results across having an edge (or lack thereof) of a couple of percent, or having a win/loss ratio of .9, 1.0,…
The “talk of the town” this morning is the massive overnight plunge and devastating losses in 2008 for government chartered mortagage companies Freddie Mac (FRE) and Fannie Mae (FNA). Also, Federal National Mortgage (FNM) has shown a very similar pattern. Let’s look at Freddie Mac (FRE) Monthly: What’s curious about this chart is the absolute…
We expect mutual funds to perform roughly in line with the respective average – actually, we expect mutual funds to beat their average because we pay management fees to the fund managers. What happens when a given fund grossly underperforms its benchmark? The famous Legg Mason Value Trust (ticker: LMVTX) is such a fund that…