I describe the market action before the opening bell and after the close and discuss set-ups for the next day.
Mortgage backers Freddie Mac (FRE) and Fannie Mae (FNM) made new lows today, after erasing all gains made from the July ‘Savior Rally” that was widely expected to be the absolute bottom for these stocks. Let’s look at where we are price-wise and how far these stocks have fallen recently. First, their daily charts: Fannie…
We tend to overcomplicate trading at times, myself included, but sometimes it’s refreshing to step back and recall the simplest, most basic (almost oversimplified) concept of broader trends and possibilities. Adam Hewison of Market Club released a new video today entitled “Three for One,” in which he takes trading and investing back to the foundational…
According to a few price calculations and support levels, odds have now shifted to favor a current possible short-term bottom for crude oil prices and a reversal to test higher levels – a technical development that comes at a time that gold has supported at similar levels and the S&P 500 is breaking down out…
With the inflation numbers (double what was expected) and weak housing data, the market took the opportunity to gap downwards through the prevailing rising support trend channel on the daily chart (evident on the Dow and S&P 500). We’ll need a close beneath the trendline to validate it, but as of noon, it looks like…
With a semi-trend day behind us and plenty of trading opportunities at hand, let’s look at some of the price structures and idealized trade entries we could have taken now that Monday’s action is complete. Dow Jones ETF – DIA 5-minute: First, the day started with a mini-index gap, which was instantly filled for little…
As of noon today, the S&P and Dow Jones returned to test their rising daily trend channel (or possible rising wedge formation) and is finding temporary support at these levels currently. Let’s look quickly and see what might be in store. DIA Daily Chart: Could a similar pattern be forming as what formed during March…
July had one of the best months in terms of the gap-fill strategy (fading an opening gap), so let’s look a bit closer to see just how this amazing feat was accomplished. DIA 60 min chart (click to expand): What I’m showing is through TradeStation’s 60 minute chart, with blue dotted lines representing yesterday’s close…
Is the Utility SPDR (XLU) on the precipice of a breakdown of a large head and shoulders pattern? At a minimum, we need to keep a close eye on this index for a potential resolution one way or the other. Let’s look. XLU Weekly Chart: Massive potential head and shoulders patterns such as this magnitude…
I’ve you’ve been following gold prices lately, you’ve noticed the precipitous plunge from the 1,025 per ounce high made just earlier this year. Rather than getting ultra bearish at these levels, let’s consider the possibility that a bounce may occur, or at least that gold prices are at critical ‘make or break’ short term price…
In one of the most massive short-squeezes/bottom fishing price surges I’ve seen, Hansen Naturals (HANS) – famous for their energy drinks – surged 50% from new 2008 lows, which was preceded by a distinct positive momentum divergence. Let’s look closer. HANS Daily: According to the Motley Fool article, Hansen released news that their Monster Energy…