In the past, I provided various examples of “Swing Charts” which focus mainly on price, momentum, and connected swings in the market. Here, I provide a few examples of the current swing perspective of the Indexes and overlay basic market structure patterns to the indexes: The Dow Jones Weekly Structure: We see three changes in…
What we thought was a significant support level was decimated by the weakness of the Jobs Report released Friday morning. The Indexes turned from a ‘hair of bullishness’ back to certain bearishness. Recall that all indexes are in confirmed downtrends on the Daily Chart (lower highs and lower lows). The ‘wind of the market’ from…
Folks, trading is NOT an easy game, especially if you are trying to predict the market and follow what seems natural to you. For those of you who are following the news regarding the “housing crunch” and “credit crisis” that has plagued the market recently, how many times have you heard about the dismal state…
Let’s take a quick look at the current position of the Major US Indexes: The Dow Jones: Dow just a hair above the 20 and 50 period EMA Dow just a hair above two converging trendlines Dow above a frequently tested ‘line’ that has served mostly as support Position of the 20 and 50 period…
Dr. Bruce Hong at Trader Psychology recently detailed to us four levels of belief in his post “Belief“. Beliefs follow the following four-step progression: 1. Opinions 2. Belief 3. Conviction 4. Core Conviction Not only do these principles apply in the market, but in various interpersonal communication, including miscommunication as a result of a failure…
I wanted to highlight a key potential resistance level in the S&P 500, which has been tested both to the downside and recently to the upside. This level appears to be holding again. The level is 1490. Notice that there should be support from key moving averages below price currently… but there is significant resistance…
Do you want to know what the “Big Boys” are up to in the Stock Market? It has often been said that if you follow the “Big Money” or “Smart Money,” then you will often have a greater chance at success in the stock market. Some traders profit entirely off of reading “insider trading” reports…
I hope everyone has a great Labor Day holiday weekend and took some time to cool down after the rampant volatility we have been experiencing in the market. To guide your thinking and get you back into the game, look for yourself at the broad picture, and I will help you focus on potential ideas…
This week brought new emphasis on the Stock Market from the broader community, as both the President and Federal Reserve Chairman made sweeping speeches underscoring their concern for falling stock prices on Wall Street. While Bernake’s speech was not as reaffirming as Wall Street would have anticipated, traders were encouraged that the Federal Reserve is…
Barry Ritholtz at The Big Picture linked to a report from Jim Stack, where Mr. Stack graphically translated five bear markets in this century to correspond with today’s Dow Jones Index. Mr. Stack provides charts that show the price decline of these Bear Markets as if they had occurred now, meaning we see the current…