The first of the month means it’s time to look at the performance of overnight gaps on the DIA! November was a particularly volatile month, with the average overnight gap being around $1.00 (100 Dow Points). Let’s look at the percentages and numbers of filled and unfilled gaps for the month. Gap Fill Chart: Trading…
What has Apple (AAPL) been up to lately? Not much for long-term investors recently, but let’s take a moment to view the monthly, weekly, and daily charts and apply Elliott Wave combined with Fibonacci analysis to see where we’ve come, how we got there, and what might be in store for the future. Apple (AAPL)…
A reader requested an Elliott Wave count on the Baltic Dry Index to compare that count to the $CRB or Commodity Index to note any differences. Let’s compare the two indexes and price structures. First, the Baltic Dry Index is mainly a survey of the price of transporting raw materials. From the Wikipedia article, the…
There’s so much to write tonight, but let’s focus first on the wild and unexpected events that occurred during the trading day which will be classified as a failed gap fade, failed “rounded reversal,” and – depending on your stop-loss placement – successful trend day down. DIA 5-minute chart: Let’s start by discussing the overnight…
I’ve had a couple of questions recently on the meaning of price ‘structure’ so I thought I’d take this opportunity to explain it and show an example of how analyzing price structure can give you a guideline in your trading. Let’s think of ‘structure’ as components that hold up price, or the arrangement of price…
A reader brought to my attention to look at the Elliott Wave Count for the Euro Index, and there’s an interesting development you might find interesting, or want to share you interpretation of what the count might be, or what might be in store next for the Euro. First, let’s set the stage with a…
An interesting potential reversal is underway in the US Dollar Index, which could give a boost to commodity prices in the short term. Let’s look at this development, and also a potentially complete Elliott Wave Impulse graph of the Dollar Index. Dollar Index Daily: : The US Dollar Index has surged steadily from its April…
During the Financial Crisis of 2008, the Ultra-short (two times leveraged) Financial ETF – symbol SKF – has generated a grand profit for some traders. However, such grand profits are not without extreme risk, as we saw in the recent three-day 50% slide in the ETF. Let’s look at this development and add a little…
The commodity collapse or demand destruction in prices has hurt commodities across the board, including companies that rely on them. I wanted to take a special look at former high-flyer US Steel (X) to show the boom and bust and underscore the volatility in commodity-based stocks. US Steel (X) Monthly: I added an Elliott Wave…
I was doing some work with Fibonacci retracements this afternoon and found a particularly interesting confluence I thought I’d share with you. It’s on the Dow Jones and it involves the current low and how it almost mysteriously fits within the current structure. Dow Jones Weekly Chart: First, let me start by saying this is…