I’ve received quite a few responses from posting on the “Strange Similarities Between the 2007 Peak and Current Rally High” yesterday evening.
I wanted to show a chart based on a comment by a reader who highlighted that, although the price patterns were similar, the readings from internals – specifically those of the net new highs – were slightly different.
In another “Hmm, That’s Interesting” post regarding prior market historical pattern, there is an eerie similarity in the rally that ended with the market peak in 2007 and the current rally into 2010. Thanks to a blog reader for pointing out this comparison to me. Let’s take a look at the S&P 500 and Dow…
One thing I’ve been trying to highlight lately in these intraday ‘update’ posts is the repetitive character or nature of some of the price patterns that have occurred… which have been virtual road-maps to the future. And they always say “Those who do not learn from the mistakes of the past are doomed to repeat…
I wanted to share another “Chart Art” post using two advanced technical (charting) methods on the S&P 500, which has been containing the recent rally quite nicely within its bounds.
Let’s take an updated look at the Gann “Square of Nine” trendlines and the default Andrews Pitchfork Tool:
Aaaand we’re off! Buyers pushed prices higher to trigger yet another round of ‘popped stops’ not only this morning, but over the last few trading sessions.
Let’s take a look at the recent ‘popped stops’ rallies and how they reveal the character of the market… and what that matters to you more than indicators or anything else.
I wanted to highlight a few quick recent charts of how the US Dollar Index positively correlates (moves in the same direction) with the 3-month Treasury Bill Discount Rate.
It’s not the most fascinating topic, but it’s definitely important to know of this relationship, so let’s take a look at a couple of recent charts.
Following up from yesterday’s post “Get Ready for Range Expansion Play from SPY Intraday Triangle,” we see that we indeed get the range expansion breakout trade as expected by the symmetrical triangle of yesterday.
Not only does it serve as a great example of real-time identification and follow-through of the pattern, but we see a similar though smaller compression triangle forming today at 1:00 EST on the SPY.
I love highlighting Measured Move Patterns (very similar to flags) in the markets due to the price pattern symmetry and structure – each one serves as a great educational reference of this not-so-common pattern.
Fewer people know what an AB=CD pattern is than do a bull or bear flag – though the two patterns are similar.
Let’s take a look at today’s AB=CD Measured Move and see how we could have traded it so we’ll know this concept next time it forms.
Similar to that of RIMM, Goldman Sachs (GS) stock broke a critical resistance level which set-up a great breakout trading opportunity for those poised to take advantage of it.
Let’s learn the lesson from this breakout, discuss another example of the “Popped Stops” and “Open Air” concepts, and be ready to apply this lesson in the next stock where it happens.
I wanted to highlight an important lesson we can learn from the recent breakout action in Research in Motion (RIMM) as it relates to “Open Air Pockets” and how traders can manage risk and take advantage of these opportunities as they develop.
Let’s take a look and see what RIMM’s recent chart can teach us.