Today’s trading so far has been a dream come true for me. My two favorite patterns have played themselves out ultra-cleanly and as close to text-book as you can get. Let’s see what I mean: Earlier, I pointed out the Gap Fade Trade the market gave us like a gift this morning. The market wasn’t…
Today’s price action so far has been nothing shy of stellar and ideal for those who love to ‘fade the gap’. If you would like to know what a clean and ideal gap fade trade looks like, then keep this one for your records. The market opened with a relatively large impulse up that was…
Apple Inc (AAPL) – from a technical analysis standpoint – may be retracing enough for a potential buy signal, as I had highlighted previously. Earlier in my post “Apple Continues its Ascension,” I hinted that APPL could be a potential buy if it were to pull back to the $140 area into moving average support….
Knowing how the market (or a stock) opens in relation to yesterday’s trading can give you a clue about what’s likely to happen for today’s trading. What are the three types of openings and what might they mean? 1. No Change This is the most typical opening, where today’s open is either equal or very…
In a surprising move, Blockbuster Inc (BBI) offered over $1 Billion to buy Circuit City (CC) to create a potential “game-changing retail concept” to merge media content with electronic devices. MarketWatch (and other sources) reported today the announcement which has the approval of Carl Icahn, an activist shareholder with a seat on Blockbuster’s board. According…
Let’s take a quick peek at the US Dow Jones Index and what may be in store for next week: The market has broken beneath key support coming from the flattening of the 20 and 50 period moving average, as well as the bottom trendline of an ascending triangle pattern. The market is in an…
Friday’s action was clearly a ‘trend day down’ in all classic definitions of the concept. How so? And how might you profit if this situation occurs again in the near future? First, let me give some generalizations for a ‘trend day’ Trend days often begin with an overnight gap Breadth is extremely skewed on a…
Take a moment and educate yourself on what a “doji” is and what it might mean. A standard doji is a type of candlestick pattern that is comprised of a single ‘candle’ where the open and close price are equal (or very close) but the high and low of the candle are distant from the…
Commodity prices, as measured by the CRB Index, staged an impressive recovery after it seemed all hopes were lost on the shorter timeframes. Actually, in the grand scheme of the weekly chart, it was just a simple, elegant pullback. Notice how the ‘collapse’ as some called it of March was just a mere pullback against…
For the first time in the contract’s life, Crude Oil prices have closed above $110 per barrel. Price has completed a consolidation pattern, and this is the critical level which will determine if price remains above this consolidation ‘value’ zone, or if it has built a sufficient base to trade higher and seek value at…