Let’s jump right into the intraday action and ideal trades (looking from the benefit of hindsight) that formed throughout the day. Let’s examine a new format, using the Dow Mini futures contract (@YMM08) viewed using what I see each day on TradeStation: (Click for full size image) Price was already on a move down when…
Volume analysis is an important part of any trader’s routine, and it’s important to know some key principles about volume to help you arrive at potentially better conclusions or possibilities about future price action. The most often stated principle is that “Volume Goes with the Trend,” meaning we would expect to see higher volume (relative)…
Let’s take a look at the recent sector money flow performance to see if we can glean any clues for the broader market, especially regarding risk-seeking or risk-avoiding behavior by larger funds. The 10 day rotation has taken money into the areas traditionally known as ‘defensive’ sectors, including Health Care, Consumer Staples, and Utilities. Energy…
I’m a big fan of John Murphy’s StockCharts.com charting website, but the company has outdone itself with a new feature I just discovered entitled “TickerRain.” What is TickerRain? It is an interactive page where StockCharts.com algorithms ‘rain’ (drop down in animation) the most recent ticker (stocks or index) symbols that are being viewed by site…
Apple, Inc (AAPL), which has been on yet another amazing price run for 2008, recently retraced to its sharply rising 20 day moving average, which sets up a potential low-risk entry for traders. Let’s see this zone: The last time Apple retraced to support was near April 14th, which set up a ‘confluence of support’…
With the day’s action complete, let’s look at the key points you could have added to a core position, or traded for quick scalp profits during the highly expected downswing in the market today: First, there was a prevailing bearish bias going into the day from the structure of the daily chart on the Indexes…
I figured we might get some continued downside in the broader market today, but I’m always surprised at how swift and rapid these sell-offs actually are. Let’s take a quick look at the action so far as we near 2:30 EST in the trading day. I’ll be using one chart created ‘on the fly’ from…
This morning while scanning the Newsflashr Business Feeds section, I noticed that virtually every major news organization was reporting on Crude Oil prices breaching $130 per barrel for the first time. Most of the headlines were of this variety: “Crude Surges Above $130 on Supply Concern” – Fox Business “Oil Tops $130 for First Time”…
The US Stock Market Indexes fell 1% today, after selling off into the close on Monday’s trading, causing price to trade at lower levels far quicker than it rose to these levels. Let’s look at the Dow for clues regarding potential structural trades you could have taken. The price began the morning with a sharp…
After failing twice at its 200 day moving average, the US Stock Market indexes tested lower levels, and do so with a sharp sell-off. Let’s view the larger picture of where price is on the Dow Jones Index: The most recent action is not the end of the world by far. Price appears to be…