I describe trading candidates and possible action for selected, low-risk trade ideas to review.
Today’s morning session gave us another excellent example of how TICK (internals) and Momentum divergences can precede intraday reversals… or at a minimum, fail to confirm new price highs on the session which is a warning sign that traders can sometimes miss. Let’s take a quick look at this example and the lesson it brings.
Here is the transcript from Part 2 of my recent interview with Larry Connors of TradingMarkets.com. Be sure to read the First Part of the Interview if you have not done so already prior to reading part 2 here.
With today’s break to new highs both in the Dow and the S&P 500, I thought it would be interesting to take a look at the 12 most recently “failed” or “busted” sell signals in the S&P 500 to see if we can note a pattern.
Reference back to my prior post on “Recent Failed Short-Sale Signals and Short Squeezes in the SPY” and “If History Repeats, Will it Mean New High for SP500?” (answer “yes!”) for more perspective.
The morning session – continuing over from a pattern into yesterday’s close – gave us an excellent example of a bear flag that I’d like to show you as an educational reference on trading tactics and “Enhanced Flags.” Let’s take a look:
I wanted to do a quick update post to show the “Rounded Reversal” pattern that formed recently on the intraday charts in GLD (Gold Tracking ETF). Let’s see it on the 15-min frame.
With the current Dow Jones Index up 52% from the March 2009 lows, let’s compare the current “Post-Crash” recovery rally to those of 1929 and 1937 to see of those periods can place our current rally into historical context.
In following up on a prior post entitled “What Happens when Key Resistance is Broken?” – I thought today’s intraday price activity gave us another excellent example of the “Stop-Pop” Technique and lessons on how to profit from pockets of known stop-losses being ripped from the market. Let’s look:
Let’s try to glean some insights from the “Sector Rotation” model as we look at both absolute and relative (to the S&P 500) AMEX Sector SPDR returns of the 9 major sector ETFs – paying special attention to the “Offensive” and “Defensive” Groups.
As we head into the lunch hour on September 9th with a strong market rally underway, let’s take a look at the major market internals as viewed from custom screens in TradeStation:
General Electric (GE) gives us a great example of how the patterns in technical analysis (charting) are fractal, and are applicable to all timeframes. Let’s take a look at perhaps the most massive bear flag I have seen, which serves as an ideal educational example of the “Enhanced Flag” concept.