Gary at The Smart Money Tracker posted an excellent observation that is one of the basic tenets of technical analysis: The Larger the Consolidation Period, the Larger the Move out of Consolidation. This concept is based in the Fourth Principle of Price Behavior which states that “Price Alternates Between Range Contraction and Range Expansion.” Price…
It’s that time of year again! The Money Show is hosting its annual winter Trader’s Exposition (one of three) in Las Vegas from November 15-18 at the Mandalay Bay Casino. Rather than explain all about it, I wanted to direct you to a post by the Trading Goddess summarizing the conference. The official link is…
The $CRB (commodities) index made new highs, after having advanced four trading days in a row, three of which opened at the low of the day and trended up to close on the high of the day, indicating decisive strength. Price is now at the top of the Bollinger Band after an extended move up,…
Quick – what would imagine as the worst looking chart ever? I’m sure a lot of images come to mind, and while this example might not be the worst ever, it is definitely worth noting, at least from a ‘trivia’ standpoint. The stock is WellCare Group (WCG) and the price closed Wednesday at $115 and…
As the headline states, I will be traveling to Chicago from Friday, October 19th until Sunday, October 21st. I’ll still try to keep brief posts and perhaps share a few weekend reading links. I will be visiting a client in Chicago and touring around the city, but also wanted to extend an invitation to any…
Some traders love the esoteric ‘magic’ of the Fibonacci Retracement Lines, which are becoming more and more popular in trading circles. Fibonacci Retracement Lines are available in most charting platforms, including the free site StockCharts.com. The ‘hard and fast’ rule for constructing a retracement is to choose a meaningful price swing high and then draw…
Often, technical analysis alone is not sufficient to analyze properly the movements in the broad market Indexes, like the S&P 500 or the Dow Jones Index. Traders benefit from the larger picture of analyzing broader, interconnected perspectives from studying inter-market relationships and how markets are often intertwined, and send signals ahead of each other. Without…
The recent moves and recoveries in some key NASDAQ stocks have been nothing less than stellar over the last month. Typically, when technology stocks outperform (or lead) the market, this has been a good sign for both the Dow and the S&P in the near future, as investors raise technology stocks when they perceive improving/better…
Part of being a trader is evolving not only as the market changes, but as you change and learn new information and assimilate that information into what you already know. I’ve shied away from trading futures heavily, because of a lack of experience or comfort with that market, compared to my years of knowledge about…
Here are the charts of the Falling US Dollar Index ($USD) and a comparison to the Dow Jones Average. First, the Daily Damage (thanks, Federal Reserve): From mid-June to present, the US Dollar Index has fallen 5.70%. US Dollar Index Weekly View A weekly view tells a more dire and dismal picture for the Dollar…