Although many bloggers (myself included) were using Bear Stearn’s Monday’s decline from $30 to $2 as a reason not to stress NOT catching a falling knife, one can’t deny today’s result – which is that the stock has more than doubled intraday from yesterday’s close. From an intraday low near $3.50 yesterday, Bear (BSC) has…
Monday was a day to remember in the US Stock Market. Let’s look quickly at what happened: The Dow Jones (up 21 points today) showed the most relative strength today, thanks in part to JP Morgan Chase (JPM) which appreciated 10% today. Unfortunately, this came at the expense of Bear Stearns (BSC) which closed the…
Adam Hewison, INO.com President, sums up the sentiment I’m sharing in this news release which explains why “trying to catch a falling knife” can cut your account to shreds. If you were a Market Club member, you likely caught the signal on this stock 12 days ago. I liked Adam’s quote, “Markets often glide, then…
As if you weren’t looking for another reason to be amazed by the current market, the weekend developments sent shockwaves through the US Stock Market, causing a 2% gap down Monday morning opening… which has already been erased less than 2 hours later. Just imagine the fear and panic as the unaware traders turning on…
Let’s peek quickly at the Dow Jones Index to see where we’ve come and where we may be headed this week: There is a large barrier which has served both as support and resistance at 12,800. More recently, the falling 20 period moving average has served as key resistance during the last three trading days…
Why? Because the Federal Reserve meets on Tuesday to announce a new interest rate cut of up to .50 or .75 bps, which could be a major market mover up or down, and quadruple witching expiration occurs this Thursday. While options expiration normally takes place the 3rd Friday of a month, this Friday, March 21st…
The US Dollar Index continues to make new lifetime lows, which is affecting other markets and economic environments. The Index compares how the US Dollar fares against other currencies, and a country’s currency often is indicative of the economic strength. Rather than discuss complex economic factors, let’s simply look at the charts, which tells the…
While Friday’s action was quite volatile, there were actually some very profitable and simple trades you could have taken within the price structure on the day. Let’s look at the DIA (Dow Jones ETF): The day did not begin with a significant gap, yet within the first 30 minutes, price had fallen from $122 to…
Without getting too deep in explanation, let’s look at the technical picture of Gold, Oil, and the US Dollar Index on the daily charts: First, the plunging US Dollar Index: On to Light Crude Oil (one barrel): Finally, Gold Contract Prices (one ounce): Finally, let’s compare the relative performance of these markets (from 180 days…
Bear Stearns (BSC), one of the major US Financial companies, lost half its value intraday today on concerns that the Fed’s recent liquidity injection “might not work” for the company. Instantly, the Federal Reserve voted unanimously today to provide cash to help this crisis, and stands ready to inject more as needed. As reported by…