I wanted to highlight a few key technology stocks that are bumping up against overhead resistance, whether via the 200 day moving average or prior price levels. Let’s start with everyone’s favorite: Apple, Inc ( AAPL ): AAPL is actually trapped between two levels of prior support/resistance, and should have massive support about the $145…
Let’s pull the camera back on the market to see where the S&P is on a monthly chart for broader insights: Currently, price is trapped between its 20 and 50 period exponential moving averages. The last time this happened was in 2001, right in the middle of a major bear market move. Are there similarities…
Continuing our brief study of intermarket relationships, let’s look at two markets with a powerful negative correlation: The US Dollar Index and the Gold Market. Gold traditionally is a hedge against inflation, and inflation often is correlated with a weak dollar and higher commodity prices across the board (which is the environment we see now)….
Intermarket analysis is a fascinating branch of market research, and I wanted to show you the performance of gold and the US Stock Market. There’s been an inverse relationship, such that when gold rises, the market is generally falling and vice versa. Gold is traditionally seen as a hedge against inflation, and inflation typically is…
I’m not sure how much you follow intermarket correlations, but there’s one relationship I’d like to highlight to you. The S&P 500 Index has been extremely correlated with the 10 Year Treasury Note Yield ($TNX), and continues to be so today. Generally (as demonstrated over the last 100 years, but not over the last 10…
I use momentum divergences as a large part of my trading, and I thought I’d take you inside a momentum divergence so you could understand the concept better. First, let’s start with a definition. Price can be defined as the aggregate value of all participants in a market as they express their hopes, desires, fears,…
Barry Ritholtz at the Big Picture recently asked the question: “Are Markets a Leading or Lagging Indicator” which addressed the commonly held notion that markets lead economics (or financial conditions as they develop). Barry states, “There are so many varied inputs into equity markets — sentiment, trend, liquidity, momentum, valuation — anyone of which can…
The US Dollar Index is still under pressure, and can’t manage to rise above its falling 20 day moving average. Each time, price has found resistance about this average, and the index has yet to close above it since early February. Of note, a triangle consolidation pattern has formed, which – depending on how the…
Thanks to the educational department of Market Club, who have compiled all 11 “Trader’s Educational Whiteboard” series into one location for ease of access. You can view all 11 Educational Videos in a theater-style format, where you can easily progress to the next video. All videos are presented by Adam Hewison, and last approximately 6…
Wednesday’s price action resulted in a type of “Trend Day” which gave nimble and aware traders an excellent opportunity to profit. Let’s take it point by point. 1. The morning opened with a gap just at 100 Dow points ($1.00 on the DIA). This was your first clue that we might have a trend day…