As depressing for the bulls as today’s equity index price action was, it allowed us to witness a near-perfect “trend day down” example. Let’s at least learn a lesson from today. Dow Jones 5-minute chart: Where do I start? First, the day began rather quietly, with price being beneath all key moving averages on the…
I must admit I’ve been shocked by the massive, unrelenting sell-off in crude oil. Let’s look at the current daily chart structure to see what clues we can glean from price information. Daily Crude Oil: Price peaked above $145 in July prior to the global recession realization (or anticipation thereof) and has slid to fresh…
Now that the United States has a new President Elect – Barack Obama – let’s take a current look at the Dow Jones average and take note of the current counter-trend retracement rally up into potential resistance areas ahead… and view an interesting triangle pattern that occurred early last night in the futures market. First,…
It’s certain that the US Election will have an effect on the equity markets and markets beyond, as the market anticipates the next president’s administration and shifts to reflect perceived policies he might create. Let’s turn to the current state-by-state polls to give us an overall electoral vote projection to see who that next president…
Today hit a milestone with the Afraid to Trade blog, as this is the 1,000th post since I began blogging in February, 2007! I wanted to take a moment to thank all readers deeply for their support and for reading, emailing, and commenting. Traffic has been increasing virtually every month, especially so in the current…
This month’s SFO (Stocks, Futures, Options) Magazine has an excellent introductory article on Elliott Wave Theory entitled, “Roadmap or GPS – Lessons in Elliott Wave Analysis” by Jim Martens of Elliott Wave International. Martens compares Elliott Wave analysis to navigating a car during a drive – do you use the flashy GPS device or do…
The volatility of October in the stock market provided a remarkable number of gap openings which provided risk and opportunity for nimble gap fade traders. With the new month upon us, let’s see how the traditional DIA opening fade gap statistics fared during October. For the first study, let’s look at DIA prices (downloaded from…
Gold prices completed their counter-trend rally on Thursday and found confluence resistance at the 38.2% Fibonacci retracement along with the 20 day EMA. Let’s see this event and see if we can make out a weekly Elliott Wave count structure as well. Gold Daily Prices: If there ever was an ‘anatomy of a sell signal,’…