I describe the market action before the opening bell and after the close and discuss set-ups for the next day.
I feel like every day this week has provided a wonderland of strange opportunities to discuss on the intraday charts – today was no exception. We experienced a 900 point swing in the Dow Jones from intraday low to high. Let’s view this action and see what sense we might have made from it. First,…
That’s a headline I never anticipated writing: “Google closed beneath $300 yesterday for the first time since August 2005.” The 2008 bear market has seized another casualty in high-flying Google stock, pulling it off 60% from its $750 price high in late 2007. Let’s take a look: Google (GOOG) Daily Chart: Price is on a…
While Tuesday’s action ultimately resulted in frustrating losses for ‘trend day traders,’ Wednesday’s action offered a picture-perfect example of a trend day for review. Let’s view it. DIA 5-min chart: I’m reminded of the Willy Wonka song, “Pure Imagination” that states, “If you want to view paradise, simply look around and view it.” If you…
The past few days have presented two complicated situations known as “Bull Traps” which have potentially resulted in large losses for those who took these trading signals. Let’s review these two situations and see if there were any clues to avoid them… or if they were just ‘part of the game.’ DIA 15-min Chart: Keep…
Whether or not you did well trading intraday today (Tuesday), you have to admit that it was a rather intensely difficult day. Let’s see if we can discern order from the day’s seeming chaos and view the DIA (Dow Jones) 5-minute chart for insight. DIA (Dow Jones ETF) 5-min chart: Just like Monday, Tuesday’s action…
I know that today’s trading was frustrating for many reasons, but by the end of the day, we’d developed a successful gap-fade trade, a couple of bear flags, and a couple of positive momentum divergences – all of which are worth reviewing for educational purproses to build pattern recognition skills for the future. DIA 5-min…
To the surprise of many, the US Dollar Index – once feared to be in a hopeless downtrend – has resurfaced to new life and is forming a potentially bullish continuation pattern on strong technical strength. Let’s look at the daily chart to see these developments. US Dollar Index: Daily Chart Price bottomed in July…
Financial Giant turned bank Goldman Sachs (GS) formed a fresh five-year closing low on an interesting triple-swing positive divergence on the daily time frame. Let’s view this development as well as a monthly chart spanning back to 2001. Goldman Sachs (GS) Daily: Goldman had strong support about the $155 level, but once that broke cleanly…
Just a day after I asked the same question, Adam Hewison of the Market Club released a nine-minute video and analysis of crude oil and explained their trading signals as well as tactics for trading with the recent trend that are of great interest. The video is entitled: “Where is the Bottom in Crude Oil”…
As depressing for the bulls as today’s equity index price action was, it allowed us to witness a near-perfect “trend day down” example. Let’s at least learn a lesson from today. Dow Jones 5-minute chart: Where do I start? First, the day began rather quietly, with price being beneath all key moving averages on the…