Friday brings us the infamous “Quadruple Witching” event which might be a big deal in the market, and it might not. Let’s define the concept and then look back in the past at some recent Quadruple Witching Days. Options traders know that the third Friday of every month is “Options Expiration Days” which can lead…
Silver (and SLV) took a brutal hit today, and fell at one point 6% intraday. It provided an interesting structure and lesson in momentum lows and bear flags. Let’s see it as it’s developing. SLV (Silver ETF) 5-min chart: I’ve never seen so many bear flags in a single day (at least not that I…
A few readers have been asking me to explain the “Cradle Trade” Concept with an example and I wanted to take the time to do that in this post. The “Cradle” has become my favorite trade, and it is one that I discovered through repeated observation. I’m sure others have figured out the same thing,…
A few readers have brought this to my attention so I wanted to share with you all the relative volume comparisons in FAS (3x Financials Bull), BGU (3x Large Cap Bull), and the – now seemingly puny – 1x DIA (you know, actual Dow Jones ETF). Let’s see these three on the daily chart. FAS…
A reader recently asked me to look into the possible Edge or strategy performance results from using the DMI+ and DMI- crossovers (components of the ADX Indicator). Let’s see the results, describe the strategy, and see how it performed. The line of thinking goes that when DMI+ crosses above DMI-, then an uptrend is in…
A reader asked me to revisit the 1929 Stock Market Crash through charts and the following chart of the Dow Jones reflects the period from 1922 to 1932 to show you the initial 1922 low and the final 1932 low and what happened in-between as seen on a weekly timeframe. (Click for Larger Image) The…
The rounded reversal pattern is one of my favorite patterns because of the ease in recognition and edge characteristics inherent in the pattern… but of course not all patterns work to our expectations. Let’s look at a large-scale (weekly) failed rounded reversal pattern in CitiGroup (C). CitiGroup (C) Weekly Chart: As Citigroup began making new…
Wow – what a day. We had another surprise news rally that drove the market higher against the overwhelmingly bearish backdrop. It was a near-repeat of February 12th, when all signs pointed lower though price rallied sharply into the close thanks to a news leak… but that’s not what’s important. Let’s look inside the DIA…
I’ve had a number of readers ask me for my settings or style on StockCharts and I posted one article entitled “How I Set-Up My Charts” but I wanted to go over it again and provide a predefined chart link to make it even easier. Clicking the S&P 500 chart below should take you to…
Research in Motion (RIMM) recently completed a Rounded Reversal pattern on the Daily Chart, though with this week’s earnings gap, the stock has broken through EMA support. Let’s see the pattern and its resolution. RIMM Daily: The Rounded Reversal is a calm, interesting pattern that expects a stable shift from sellers to buyers as price…