Looking at the Sector Rotation model over the past 10 and 30 days, we see bearish longer term and mild-to bullish short-term sentiment as a ‘money flow’ indicator. Let’s first look at the 30 day segment of sector performance: We see fund flows into relatively defensive or bearish sectors during the period from late October…
Let’s take a look at the current “Swing Charts” of the major US Stock Market Indexes: First, the Dow Jones Daily: Price is nearing the Upper Keltner Channel The recent upswing is greater than prior upswings, but failed to create a new momentum high Price is above all key moving averages Price is in a…
Congratulations to Dr. Steenbarger at the TraderFeed blogspot for its two year anniversary! Dr. Steenbarger’s site was one of the first blogs I discovered and have read almost every day, and I have gained so much insight from reading his posts, and I wanted to extend an extra word of thanks for his support of…
Gold prices appear to be in the middle of forming a consolidation pattern that resembles a standard triangle pattern. This seems reasonable, given the immense run-up in gold prices following September (there was a minor triangle pattern – not shown – that preceded the recent large volatility move). Triangles are “pause” patterns that represent consolidation…
Just after noon Eastern, the major US indexes complete the 1, 2, 3, Gap Fade tactic, which has been working extremely well over the last few months. As a refresher, any time a gap occurs on (especially) the Dow Jones (or DIA) that is less than 100 points, the strategy that I find that works…
Deere and Company (DE) has been perhaps an overlooked giant the last few years. While people have been focusing on high-flyers like Amazon (AMZN), Research in Motion (RIMM), Google (GOOG), and Apple (AAPL), Deere has been creating similar patterns and similar price appreciations. Their 2 for 1 stock split earlier this week made the stock…
It’s time to take a brief technical look at the stock market and see what’s happened and what may lie ahead. From the top (using the Dow Jones Industrial Average), we are in a daily downtrend and are threatening to be in one on the weekly charts. Prices have risen in the previous upswing to…
The TyroTrader presented interesting thoughts in “Society and Trading” which questions how much social support you receive from your friends and family while pursuing a career as a retail trader. He references Nassim Talib’s book Black Swan and addresses differences between a society in which everyone works diligently day by day to make a decent…
Ford Motor Company (F) recently completed a compressed Head and Shoulders pattern that exceeded the price projection inherent in the pattern. The Head and Shoulders pattern in Technical Analysis consists of an initial swing (left shoulder) that results in a second higher swing (head) and terminates with a failure swing (right shoulder) that takes price…
There is temporary reason to be optimistic on the US Dollar Index with its recent momentum divergence, which has already achieved its index price target. Momentum divergences are – by their very nature – countertrend trades and often are applicable only for a small target, such as a return (snap-back or reversion) to the 20…