I describe the market action before the opening bell and after the close and discuss set-ups for the next day.
After a stellar October, the US Equity Markets have paused briefly between two main bracket (confluence) levels. Let’s take a quick look at these levels on the daily chart and use these for trade planning: Let’s drill down to the simple levels and you can build plans from there. After triggering a terribly violent Bear…
Following up with the Inter-market charts at the beginning of November, let’s take it a step further and quantitify the levels of volatility – using Standard Deviation Bands – of the S&P 500, Gold, Oil, and US Dollar Index. Let’s start with the S&P 500 Standard Deviation Band Chart: First, a little explanation about what…
With the sharp rise in volatility in the cross-market landscape – mainly driven by Greece’s bailout then walked-back with the surprise announcement of a referendum vote – let’s take a quick look at where the current intermarket landscape resides at the moment. Click for larger image. To recap, Thursday (October 27th) gave us a positive…
If you’re looking at the Stock Market only, you’re likely missing the other side of the coin which is the Bond Market. With the recent surge through resistance in stocks, let’s get a check-up on the break under support in popular bond funds TLT and IEF. First, the 20+ Year TLT: Let’s start with the…
AutoZone (AZO) is a stock I’ve been watching – and amazed by – for a while, mainly because it just doesn’t seem capable of a full trend reversal! Let’s take a look at the strongly trending price action from 2010 to present, and note the change in “angular momentum” or “angles of ascension” (trendlines) and…
We’ve been seeing copper in the news lately, mainly with its recent breakdown and consolidation off a key support level. Let’s take a look at the weekly frame then drill-down to daily chart levels to watch in both Copper and the related ETF JJC. First, the Weekly Chart of Copper: A quick glance of the…
Mid-October gave us back-to-back examples of one of my favorite patterns and trade set-ups – that of the intraday trend reversal on clear positive dual divergences. We’ll be using the @ES Futures as our proxy, but this example extends to any index futures contract or related ETF (including the leveraged funds). Let’s take a moment…
With US Equity Indexes threatening a breakthrough above key overhead resistance, what are market internals hinting about the current state of the market and the strength of the recent rally? Let’s take a look, starting with the 10-min chart: We’re seeing the “Big Three” market internals – Breadth ($ADD), NYSE TICK, and Volume Difference of…
Wow – if you missed the post-market action in IBM’s earnings announcement, you missed a huge move that took so many traders by surprise. While this post will focus mainly on key lessons from the charts, it’s worth noting that trading around earnings increases risk, especially if a stock’s earnings differ greatly from what’s expected……
I’m a huge believer that “history repeats,” and one can often see similar situations developing now that formed in the past. True, nothing repeats with exactitude, but you can often learn lessons – mainly about assumptions and outcomes – from studying similar chart formations that have developed in the past. Let’s take a look at…