March was certainly the month for overnight gaps in the US Indexes! I list here the results of my monthly study of overnight gaps in the Dow Jones ETF (DIA – the “Diamonds”) to see the percentages that help determine the validity of the “Fade the Gap” strategy. Let’s look at March’s simple statistics: Of…
Citigroup (C) is showing initial strength on the daily chart and may be ready to try for a reversal. Price is struggling to break above the 50 period moving average, which has served in the past as key resistance. Price remains in a strongly confirmed downtrend, but a recent increase in momentum may be a…
In case you don’t follow global markets, I thought I’d show you the amazing, euphoric rise of th Shanghai ($SSEC) Stock Composite Index (China) and its precipitous fall and compare that to the US NASDAQ Composite blow-off of 2000. The monthly chart shows a wild ride for investors, including the stratospheric rise from 2,000 to…
With the exception of Tuesday’s “April Fool’s” 3% stock market move, the rest of the week experienced tame trading. Let’s take a quick look at some of the index charts to see where last week’s action left us: For the S&P 500, price crested and closed 4 days in a row above the key 20…
Potash Corp (POT) is a stock I have been watching for over a year now, and it has been an amazing ride up to new life-time highs hit today. Potash is a large fertilizer company that has been increasing in market share and share price over the last few years, and now traders are becoming…
One of my favorite intraday patterns is the bull and bear flags. But how do you identify and then trade these patterns? Let’s focus just on the bull flag for this post. Why do I like this pattern? It is relatively simple to identify, only uses price (no complex indicators), and the stop-loss along with…
Adam Hewison of Market Club fame recently released the trading profit results from their “Trade Triangle” technology service. In one of his classic Trader’s Whiteboard brief videos, Hewison released their performance for the first quarter and how members were able to benefit from their signals from the markets they follow. Hewison writes: 2008 has already…
Apple Inc (AAPL) has completed a mighty technical feat recently – it has stopped its downtrend and now is showing signs of vibrant life. Notice the “U-Turn” or the “Saucer or Rounded” bottom the stock has formed. After falling from $200 to $115 two months later, AAPL has recovered up to an intraday high near…
INO.com President Adam Hewison launched a new series of educational videos he calls the “Trader’s Whiteboard” videos, in which he briefly discusses a trading topic and annotates a chart in real time for you, describing the concept and showing examples. The new page entitled “Complete Trader’s Whiteboard” series compiles all seven of Hewison’s free educational…
The US Indexes opened this morning slightly lower via an overnight gap, yet as of 11:00 EST, all had virtually filled this gap, creating a profit opportunity for nimble traders. Let’s look at two different chart views to see the difference: StockCharts.com reports yesterday’s close as a hash-mark around $126.20 (in the DIA) but it…