I describe the market action before the opening bell and after the close and discuss set-ups for the next day.
I think it’s important to document interesting examples of trading concepts played out during the day, as it serves both as an educational reference and deepens our knowledge about these concepts, which helps us to trade better the next time a similar set-up or opportunity unfolds in real time. A great educational example – and…
Wow – you don’t see these sort of “Mirror Image” patterns that often, but they are stellar when they set-up and complete. Let’s learn some quick lessons you can apply to the future from the recent intraday 30-min Head and Shoulders price pattern reversal – with perfect divergences – and the trade that accompanied the…
I had a suspicion a big pop might happen but it’s still sometimes surreal to see it happen first thing in the New Year! Let’s take a look at the “repeating history” (you might be very surprised) and learn lessons from yet another excellent example of one of my favorite concepts – Popped Stops. First,…
As promised, I wanted to follow-up the prior “Market Performance in 2010” post with a few charts of the major cross-markets and the developing relationship with the S&P 500. In looking at the reference charts, pay close attention first to the type of relationship – positive or negative – and the periods of time (highlighted)…
Courtesy FinViz.com, I wanted to share the 2010 multiple market performance – futures contract returns – for 2010. You might be surprised which markets rose the most in the year. Here’s the chart with one day left to close out 2010: Wouldn’t it be neat to have this chart at the beginning of 2010? Wishful…
I’m a big fan of monitoring price – particularly in a trending environment – with respective 20 and 50 day exponential moving averages (EMAs). Recently, gold (and GLD) have shown a good example of how EMAs serve as good reference points for expected/potential support in the context of a rising bullish trend. Let’s take a…
Goldman Sachs has been a wild ride for both investors and traders this year, despite being a leading financial company. As per usual practice, the chart gives us excellent examples of trading tactics we can use as a reference for the future. Let’s take a look specifically at Two Divergences and the resulting Two Breakouts…
Traders frequently study market internals – including breadth – to peek under the hood of a price movement or trend to see if internals are confirming the move (suggesting continuation) or disconfirming the move (suggesting retracement or reversal). Let’s take a look at what S&P 500 specific Internals – breadth – have taught us about…
So far, this December is on path to be one of the best performing Decembers in market history. Let’s take a quick summary look at the market performance in the month of December – one of the most bullish months of the year – and compare now with prior monthly returns over the past decade….
Netflix (NFLX) has been showing up frequently on many trading radars, and for good reason – the stock has doubled from $100 to $200 from August to December, and it did so within a stable uptrending structure that allowed for low-risk entries – either from a retracement standpoint or a breakout move – into the…