Wednesday was a very interesting day in the US Stock Market Indexes. A few classical patterns played themselves out, which provided lucrative trades to those who were nimble. Let’s look at some of them: This morning’s impulse gap down, with large range first 5-minute bar was the first clue that the day could be a…
Apple Inc (AAPL) has been on a steady recovery since its mid-February $115 ‘bottom,’ and has formed a rounded saucer bottom which could turn into a classic ‘cup with handle’ upon the next retracement which seems likely. Price rounded up off the Feb. 25th low to enter a powerful and sustained ‘bull move’ up. Resistance…
The Dow this morning formed a near idea bear flag pattern that revealed itself to savvy traders. The only thing keeping this pattern from being ideal was that the market was unable to retrace back to the falling 20 period moving average, which was a further sign of market weakness developing. Ideal entry (short) would…
You’ve had it happen to you. You want to buy a stock you’ve been studying for a while, and finally they announce a surprise bit of good news and the price rallies sharply higher and so you jump in, not to be left out. You have a sudden profit on your hands but suddenly, the…
The most recent intraday price swing on the indexes was amazingly smooth and I had to highlight its recent development: It’s almost as if someone threw a ball into the air, watched it slow down before its ultimate peak, and then is watching it returning back to earth. Typically you see deeper swings in the…
Google (GOOG) stock has been beaten down by the bears since last November, when the stock made an all-time high near $750. Recently, the stock traded to a recent low of $425, but may the stock be forming a base? The Daily chart shows a recent positive momentum divergence, following a bear-flag continuation patter which…
I had to show you this humerus but thought-provoking post by Adam at Daily Options Report entitled “Stop Trading! Umbrellas Cause Rain!“. I’ve always loved how Adam refers to Jim Cramer as “Lord Voldemort,” and this post is no exception. In this brief analysis which contains plenty of “Cramer Quotes,” Adam discusses how Cramer responded…
Wow, what a day in the financial markets! The NASDAQ (QQQQ ETF) rose 3% today while the other major markets rose 1.5%. Let’s look at a few key charts and see if we can determine what may happen next. First, the Dow Jones daily: The market action today was very impressive, and rounds out a…
Adam Hewison’s latest Trader’s Whiteboard Video is entitled “Chart Patterns that Produce Profits” which specifically discusses a few continuation patterns for your education. Hewison discusses the recent action in gold prices and discusses how to determine types of retracements and continuation (including the symmetrical triangle) patterns. He even discusses one of my favorite patterns, the…
Let’s quickly look at the charts of some of the indexes to see what may happen next week! First, the Dow Jones Daily: There are significant levels of resistance for the bulls to overcome, the first of which is the falling 50 period moving average; the second is the horizontal line beneath 12,800 which has…