Gary Kaltbaum wrote an article for TradingMarkets.com that I wanted to share with you and highlight some of the key quotes and main ideas. Entitled “The Market Remains Smarter than All,” Kaltbaum explains how calling a bottom – as most traders know but investors do not – in this market has been a fool’s game. …
Let’s take a weekly look at the 10-Year Treasury Note Price and highlight an interesting Fibonacci Confluence Cluster price and note the recent action taking place. US 10-Year Treasury Notes (Price): (You’ll need to click on the image for large chart) Price broke out of a lengthy downward sloping trendline (actually trend channel) in late…
A reader requested that I pass this information on to readers and encourage you to take action (call your Congressperson, sign the petition, make others aware) because your future as a trader just might be at stake. On February 13th, Congressman Peter DeFazio introduced House Resolution 1068 which seeks to impose a 0.25% tax on…
The rounded reversal pattern is one of my favorite patterns because of the ease in recognition and edge characteristics inherent in the pattern… but of course not all patterns work to our expectations. Let’s look at a large-scale (weekly) failed rounded reversal pattern in CitiGroup (C). CitiGroup (C) Weekly Chart: As Citigroup began making new…
Wow – what a day. We had another surprise news rally that drove the market higher against the overwhelmingly bearish backdrop. It was a near-repeat of February 12th, when all signs pointed lower though price rallied sharply into the close thanks to a news leak… but that’s not what’s important. Let’s look inside the DIA…
In another ominous sign to investors, the market gave an old-fashioned renewed “Dow Theory Sell Signal” Today. What does that mean going forward? Let’s take a look at the Dow Jones Industrial and Dow Jones Transportation Index for additional insights. A modern Dow Theory Sell Signal is given when BOTH the Dow Industrials and Transports…
We’ve heard dozens of times how “The Trend is Your Friend” but let’s take a moment to look at the chart in as simple terms as possible and reflect on why that one statment is so important to trading success. Adam Hewison released an educational video entitled “The Trend is Your Friend – Dow Jones”…
How can we tie a post about Banks and Beer Sales together? Nate Silver of FiveThirtyEight.com posted two thought-provoking articles I wanted to share. First, in “Beer is No Longer Recession Proof,” Silver shows us a chart (copied below from FiveThirtyEight.com) that compares Quarterly Percent Changes in Alcohol Sales (adjusted for inflation) plotted against Real…
A reader asked me to comment on the chart of Silver, and it’s quite an impressive chart to behold. Silver is close to doubling in price from the October 2008 lows to present. Let’s take a look at the daily chart and also view the monthly structure as well. Silver Daily: Silver is showing us…
From today until February 20th, Andrew Horowitz, author of the Disciplined Investor and host of a largely popular financial podcast series and blog, is making his book available for free through MSN Money Central. The MSN Money Page also summarizes some of Andrew’s strategies for surviving in a down market and how you might protect…