I describe the market action before the opening bell and after the close and discuss set-ups for the next day.
On Monday, the US House of Representatives rejected the “Bail-out/Recovery” Bill narrowly, sending the Dow Jones plunging, closing down 777 points. Today, hours ago, the House passed the Bill by a comfortable margin. Did the Dow rally like virtually everyone expected? No – it fell almost 500 points from its intraday high. It almost makes…
The only way I can describe the recent stock market activity is that of a wild “Roller Coaster” ride. Up, down sharply, up again, down again – nauseating, but fun if you like the wild swings (or have short-term strategies to take advantage of them). Let’s take a closer look at the S&P 500 to…
Research in Motion (RIMM), a popular stock for day-traders due to its volatility – recently plunged from an August swing high of $135 to a September low of $60 per share. Let’s look at the current chart to see a good “Measured Move” pattern example as well as potential support for RIMM on the weekly…
Today’s action was historic and will likely be remembered for some time to come. The NASDAQ fell almost 10% – Crude Oil also fell 10%. The Dollar Index rallied slightly through all the turmoil and the 10-Year Yield fell 5.0% today. Let’s see all these developments on their respective daily charts. The NASDAQ Fell 10%…
What a day – as of 2:05 EST, the US House of Representatives has rejected the Economic “Bail-out” Bill and the Dow Jones plunged as far as almost 700 points down on the day (currently down 525 but rapidly changing) while the Volatility Index (VIX – the “Fear Index”) surged to 10-year highs – outpacing…
One underlining headline you might miss today in the media’s focus on the Bail-Out Bill is the fact that Apple Inc (AAPL) was downgraded by RBC and Morgan Stanley – Apple’s share price declined over 15% in early trading on Monday. The Street.com reports that RBC Capital downgraded Apple Inc from “Outperform” to “Sector Perform”…
Although volatility and volume were less than the previous week, we still had some wild swings that left some traders confused and frustrated at the seeming ‘randomness’ of last week’s equity index action. Let’s take a quick look at the S&P 500 and see if we can glean any clues from that action. S&P 500…
First, we never know when a company will declare bankruptcy or cease trading – charts can’t tell us that. What they can do is warn us to a deteriorating situation and allow risk-management procedures to take place, as well as warning us that we should probably avoid or reduce exposure to a given stock. Let’s…
In a testament that classic technical analysis is still ‘working’ in this environment, the US Dollar Index supported at the $76.00 level, which I highlighted in prior posts “US Dollar Index and Support” and “Dollar Index Targets Achieved Today“. What’s likely in store now and has the structure changed? Earlier, I indicated that the $76.00…
Contrary to popular belief, the US Equity Market did not rise when Monday morning’s trading opened… or Tuesday’s… or Wednesday’s… but a lenghty and significant positive momentum divergence formed which has given us in part today’s rising index action. Let’s see this informational formation and what could be ahead. We’ll use the SPY (S&P 500)…