There’s a clear theme emerging in the market action regarding intraday price movement. The majority of the price activity of the day takes place within the last hour of the trading day as traders either nervously take off positions or confidently put on large positions. The activity of the larger funds combined with panic (of…
The action of the last week casts a bearish pall not only on the charts of the major indexes, but from the readings of the sector rotation model. Let’s look at two graphs on sector rotation: The first graph measures price movement/money flow of the last 65 days (a “longer” term perspective): The brief interpretation…
Would you like to pick tops and bottoms more accurately? Honestly, this shouldn’t be your goal as a trader, but with the “Sweet Spot” concept, you will be able to put trends and markets in a better context to identify when conditions favor a final phase of a trend in motion and a potential birth…
I’ll be honest – I am SO relieved the weekend is here. This week has been the most surprising week of my trading career. I have seen many sharp increases in volatility in the market (not associated with a major economic report), but those events tend to be isolated and relatively rare. This week, we…
We all trade for one reason, right? To make money. So why does it seem that achieving that simple goal is so difficult at times? Also, if we trade to make money, why do many successful trading professionals advise us “not to focus on the money” – doesn’t that seem entirely ironic? In fact, in…
The last hour of the trading day is becoming ‘golden’ in the sense that volatility and range become rampant as traders struggle for position before the close.Today’s action was a reverse of yesterday’s down action in the last hour… only this time, the 250 point sudden increase in the Dow took place over the last…
I’ll be honest – the ferocity of today’s last hour decline took me by surprise and took me out of a few positions. From the top of today’s range (13,498) to the bottom (13,199), the Dow ‘lost’ 300 points today in steady decline. The opening hour above yesterday’s close lured in new buyers hoping everything…
While doing my evening scan, I found the following stocks very interesting from the standpoint of major technical damage that has occurred to them over the following days during the market decline. Of course, I am not advocating trading these stocks – I am only noting that these have interesting patterns that have taken down…
Where the major indexes stand currently, we are experiencing an orderly, yet rapid, pullback to established support zones. Recall that as a market rises, it undergoes pullbacks to shake out excesses and allow opportunities for latecomers to establish new positions, or current traders to establish larger positions. Markets pullback as a result of orderly profit…
In this case, pictures speak more than words. Both in the Dow and the S&P 500, price sits mere breaths above key support zones and are threatening to break them. Buyers should take the opportunity to step in and support the indexes, but should they not, odds would favor much lower prices as stops are…