I describe the market action before the opening bell and after the close and discuss set-ups for the next day.
We know that the broader US Stock Market continues to extend its persistent uptrend, but which stocks are also extending their up or downtrends accordingly? Let’s take a quick look at the stocks with the most consecutive UP closes along with those trend-fighting warriors with the greatest DOWN closes in this straight-up equity market. We’ll…
If you use any sort of inter-market or cross-market analysis in your trading, you’re probably aware that the traditionally positive relationship between stocks and commodities have broken down through most of 2013. Let’s take a look at this relationship, how it’s been strong, and how it’s broken sharply over the last few months (reminding us…
We’ve seen more “parabolic arc” or emotion-fueled impulsve ‘blow-off’ price movements lately, and DDD gives us another example of how these patterns form and resolve. We can also take a look at basic trading tactics of how to manage risk, avoid emotion (which fuels the pattern) and seek to profit for those with strong risk-tolerance….
While it’s true that price tends to alternate between states of range expansion (trend/impulse) and range contraction, it’s rare to see a clearer picture of a price compression pattern than what is developing at the moment on the Caterpillar (CAT) Charts. Let’s take a look at the key compression pattern and Value Area price levels…
If you use the NYSE TICK in any way for intraday or swing trading decisions, it’s essential to update how you measure TICK readings in the context of periods of high or low volatility. One can’t assume a TICK reading of +1,000 or -1,000 is equivalent or even a valid trading entry/exit signal in all…
We continue to watch Amazon.com (AMZN) trade within what seems to be the latter stages of a parabolic arc or explosive vertical impulse pattern. I’m a big fan of these “parabolic arc trendline” patterns – let’s update the current chart of Amazon’s (AMZN) textbook parabolic arc trend structure. Amazon.com shares have traded steadily between rising…
I’m a big fan of the concept of scanning for “Strong Stocks Getting Stronger” along with the concept of Relative Strength. Stocks that are trading in an established trend, especially within a structured rising parallel trendline pattern, can provide quick and easy retracement opportunities for swing and even intraday traders. Let’s take a quick look…
If you’re a close follower of the main US Equity Indexes, you probably noticed a visual shift in leadership or the ongoing “relative strength” relationship. Let’s take a quick look at what’s shifted and what it may mean for the broader market at this critical juncture: When comparing Relative Strength, we often start with a…
What message are Market Internals sending while we’re experiencing a sharp sell-off in the broader equity indexes? Let’s take a look at the S&P 500 with the “Big Three” Market Internals: We tend to look to Market Internals both as a Confirming Variable (note the yellow highlight) where price AND internals both rise together (it…
With today’s sell-off in motion, let’s step our perspective up to the higher frame and note the dominant trendline in play. What happens here could easily determine our game-plan for swing trading and over multiple intraday “day” trading sessions in the market. We’ll start with a “pure price and trendline” view of the @ES Futures:…