I don’t frequently review commodity futures charts, but in doing so, I couldn’t resist posting this weekly chart of Sugar. The price doubled and then fell back to the previous price. Talk about a wild ride! We are seeing momentum buy divergences, meaning selling is likely drying up from a momentum standpoint. Also, we are…
Lumber (future) has experienced a rapid and sustained decline, as evidenced by its weekly chart. We are seeing weekly momentum buy divergences that indicate a slowing of the selling pressure, but the trend remains in tact until disconfirmed by a higher high and a higher low. Until then, odds favor successful trades on the short…
In Wall Street, there’s an old saying, “The Market takes the escalator (or stairs) up and the elevator down!” This statement is exemplified by the action in the Silver futures contract. We have a slight and creeping uptrend followed by a quick shake-out downthrust to cause all those who bought in to be underwater instantly. …
Here is a chart of the most recent update concerning the last three months (ranking) Industry strength and weakness, as viewed from Prophet.net: Top Industries Money is flowing into Oil and Gas equipment, as well as Foreign Telecom Services (as evidenced from the right to left ‘red to green’ flow). Opportunities for continued growth may…
I highlighted Chicago Mercantile Exchange (CME) here as a study on trendlines and support. It is a ‘very expensive’ stock, and one I recommend playing options (particularly credit spreads) if you desire to trade this stock that is priced higher than monster Google (GOOG). Of quick note: CME recently broke its triangle consolidation to the…
Dr. Steenbarger recently posted two writings/links on how to overcome performance anxiety. After offering previous comments from readers who sent in their own techniques to overcome anxiety in trading, he listed two techniques from his own research/practice, and an additional post on a Solution Focused Linkfest. He writes that self-hypnosis (with a simple, easy to…
With so many charts showing ‘euphoric’ gap patterns (often based on earnings releases/momentum), I couldn’t pass up posting today’s action in Amazon (AMZN) which increased 27% in one day! By the way, the Nasdaq made a fresh 6 year high and the Dow closed comfortably above 13,000, making yet another all-time closing high. Headlines and…
I must admit I am impressed with the strength of the recent rally, especially in the market leading Dow Jones Index (which is still just comprised of 30 large-cap stocks). The Dow came within 10 points of touching the psychological 13,000 mark today, and it appears likely we will test this high soon. What people…
Here are three charts that show past opportunities and some possibilities for the futures. All charts are for educational purposes and have minimal annotation. US Dollar Index – Weekly Comments: Downtrending and may make new price lows Potential support at the 2005 low – if broken, few levels of support below Head and Shoulders pattern…
Lauriston at the Lauriston Letter recently polled readers to send in their responses regarding what would be the top ten fundamental (or core) trading rules to follow. The responses are compiled here (at this link) and include not only critical insights into the highest probability activities, but insights from traders helping other traders. The Lauriston…