It seems all traders seek to answer the same question: “When is this market likely to reverse?” Newer traders tend to love “reversal” style strategies, wanting to enter as close as possible to a trend reversal in order to have the tightest stop and biggest target possible. While no strategy can call a top or…
I strongly advocate “thinking in themes” rather than indicators and keeping your focus as much as possible on price structure. Namely, you want to know “what is price doing and how effectively is it doing in?” Here – let’s look at the current SPY intraday world to pick up on a theme that you may…
When we think of inter-market positive relationships, most of us think of Stocks, Crude Oil, and Gold (among other commodities) as highly positively corrlated and that’s true. What doesn’t come to mind immediately is the very strong positive correlation in the 10-year Treasury Note Yield and the S&P 500. It’s an important relationship that traders…
I’ve heard a lot of chatter about Copper prices and a potential reversal lately, so let’s take a quick look at simple trend structure and levels to watch on both the important weekly and daily chart frames. First, the Weekly Chart gives the bigger perspective: First of all, when quantifying trend on the weekly chart,…
What is the current “hidden” picture of market strength or weakness from the perspective of Market Breadth? Not good, for one. Let’s take a look at NYSE Market Breadth in terms of the current snap-rally and what levels are important to watch. First, the bigger “breadth” picture from the 30-min chart: What we’re seeing is…
There are two main facts to know about the current chart structure for the four main US Stock Market indexes: First, ALL indexes have broken above a critical trendline and the 20/50 day EMAs Second, Volume has declined steadily as price rallied above these key levels. Let’s see how these two facts played out in…
Wow – what a turn-around intraday in gold prices! Buyers who purchased gold or the GLD ETF on the breakout to new highs in the morning session were cursed with a mid-day reversal that triggered a Bull Trap that created an ominous looking Bearish Engulfing Candle on the daily chart. Let’s take a moment to…
As of this moment, the NYSE intraday TICK is deeply compressing relative to the prior sessions, and to historical norms. Why is this important? Compression highlights “no activity” and “little opportunity” in the intraday market on the one hand, and on the other, it suggests that an expansionary move – a sharp rise in volatility…
I’ve been keeping a close eye on the Sector Rotation model and its bullish signals from the September 2010 market low (the onset of QE2 Rumors) and the model has held-up well. Let’s take a look at two perspectives of recent Sector Performance – one from the February 2011 top and the other – surprise…
I’ve written in the past about a simple screener tool that highlights the five most overextended stocks from their 200 day Simple Moving Average and how you can use the data in different ways. Let’s start with the 5 top overextended stocks as of March 21st and then see what strategies may be used: Courtesy…