Following up from my educational update on August 20th, the very same situation unfolded on August 22 with an even more powerful outcome. Let’s take a moment to see what happened and what we can learn from this similar situation: Please reference the prior “Example of Playing Popped Stops from a Failed Retracement” update from…
As traders, sometimes we learn more from failed trades than successful ones, underscoring how important it is to review your trades for as much information as possible. I wanted to highlight a great example of how to switch gears and adapt when price does something unexpected, which can lead to profitable trades in the new…
There’s an interesting chart phenomenon I’ve covered in the past and the S&P 500 is currently repeating the pattern. Let’s take a look at the updated Sigma Band (Bollinger Band) chart for the S&P 500 and take a look at two recent examples of a similar pattern to monitor. Here’s the current S&P 500: What…
We’re hearing much talk about the potential Bear Flag pattern on the S&P 500 Daily Chart. Let’s take a mid-week update on the pattern and note the current key price boundary levels to watch for clues. First, here’s the S&P 500 Daily Chart trendline structure: Moving from right to left, we see the current “Bear…
I’ve been highlighting the trend of distribution volume in the SPY (S&P 500 ETF) since April, and that trend continues presently. Let’s take a quick update on what volume suggests about the health of the stock market: We continue to see phases of Distribution Volume as price rallies and retraces from May to present. To…
For traders, assessing volume is important to defining the health or weakness of a trend in motion. Volume should confirm price, meaning volume should rise during up-swings in a bullish uptrend… or else rise during down-swings in a bearish downtrend. Let’s take a look at recent volume signals in the SPY and QQQ and learn…
As a follow-up to yesterday’s “Bullish Sector Rotation Model” post, let’s take a moment to clarify how investors and traders can use top-level Sector Rotation themes to their advantage. Traders and investors often use the model – or at least compare sector relative performance – to pinpoint trading or investing opportunities from the strongest stocks…
It can be very helpful to start your analysis with a clean price chart and determine current market structure for whatever you’re trading. Let’s review the concept of “Market Structure” – meaning basic trend analysis – and see how “Structure” develops on two timeframes with a recent example in Silver prices. This lesson/concept applies to…
Though it’s been mentioned frequently on the news, the recent crude oil price breakthrough has been impressive on the charts as well. Let’s take a look at the current structure of Crude Oil and pay special attention to the breakout from consolidation/resistance, as well as the current “Open Air” pocket to watch. Here’s the Daily…
I wanted to highlight one of my favorite intraday trading “combo” set-ups that occurred twice on February 13th. It’s the “Retracement plus Dual Divergence” set-up that develops on all timeframes. Let’s take a quick moment to study this set-up as it appeared on the intraday frame and how we can apply it to other situations….