I describe the market action before the opening bell and after the close and discuss set-ups for the next day.
The start of February means it’s time to examine the raw statistics on the monthly “Gap Fade” numbers in the DIA (Dow Jones ETF). Remember, we consider a ‘gap’ to be at least $0.25 in the DIA and define a ‘gap fill’ as an opening greater than $0.25 up or down when the price equals…
January did not get 2009 off to a great start. Let’s break down the S&P 500’s 10% loss by sector and see what clues the Sector Rotation performance in January might be offering us. Sector Rotation (AMEX Sectors) absolute performance in January: We’re seeing a negative picture across the board – not one major Sector…
I wanted to point out a potentially significant structural change in price that developed today before the close. We have a confirmed Rounded Reversal on the 15-minute chart of the DIA which is setting up confluence support. DIA 15-min chart: Rounded Reversals can be significant because they highlight a clean shift in the balance between…
Crude Oil prices, as seen by the $WTIC, have found significant support near $40 per barrel and may be forming a rounded reversal pattern on the daily chart. Let’s see this development. Crude Oil ($WTIC) Daily: Remember that $40 per barrel was significant resistance in 2000 and 2003, which was broken in 2004 that set…
Today marked a very rare and interesting outcome in the major US Equity Market ETFs: QQQQ rose 1%, SPY was unchanged, and the DIA fell 1%. Let’s look at this and try to see what happened. Intraday Percentage Performance SPY, DIA, and QQQQ: The chart is a little off to account for the gap. The…
It’s time to update the Elliott Wave count and see what might be happening in the S&P 500 and how we might manage risk accordingly. Possible Elliott Wave Interpretation on the S&P 500 Index: This count assumes that the larger Third Wave has indeed completed. Refer back to my December post that asked “Which Elliott…
I thought that had a catchy name – ABC on TLT. What it means is that we’ve had a clean Elliott Retracement phase on the 20-year bond fund TLT after the sharp rise going into 2009. Let’s see these developments and what it might mean. TLT Daily Chart: The TLT Fund broke out of consolidation…
Friday gave us yet another “Trend Day Down” in the market – making two in a row – but there’s something quite interesting you need to review about Friday’s Trend Day action. DIA 5-min: Do you know what it is without looking? At 1:00pm, all short stops were triggered, knocking trend-day traders out of their…
I remember hearing all about how wonderful the Sirius/XM Satellite Radio merger was and how you should be buying stock and especially that you should buy because price was around $2.00 or $3.00 and if price moved just a little bit to $4.00 or $6.00 that you would double your money, not to mention if…
Thursday’s price action gave us yet another excellent example of a trend day, which offers us the opportunity to trade any retracement aggressively. Let’s look at the structure and key high probability trade set-ups that formed. DIA 5-min: The day started just as Wednesday did with a large (greater than $1.00) overnight gap. For the…