I describe the market action before the opening bell and after the close and discuss set-ups for the next day.
The DJ Transportation Index ($TRANS) is outperforming the Dow Jones index, which is an interesting development that has implications for Dow Theory. Dow Theory stresses the ‘confirmation’ between the DJ Transports and the DJ Index itself (meaning both must make a higher high to signal a ‘Buy Signal’ and vice versa). According to the theory,…
There’s an interesting confluence of support coming in on the Dow Jones and S&P 500 Averages. Let’s look: S&P 500: On both charts, three proposed trendlines have all come together to a point, which sits just under the current index prices. It’s interesting to have such a confluence. Also, the key 20 and 50 period…
Potash (POT) is a stock I have been following for over a year now, and it has continued to be an impressive stock that has treated its investors phenomenally. What happened last week and why was it important? Potash beat earnings expectations by $0.22 last week, and increased its outlook for the future. “The world’s…
This week, the US Dollar Index has recovered slightly, and price finds itself above key resistance and attempting a new swing high. What might this mean for commodities? First, the US Dollar Index is breaking above a consolidation pattern, which was preceded by a positive momentum divergence. Should price break the $73 level, the next…
As I always recommend, take a look at your chosen market and chosen time frame and annotate the action and ideal trades for the day, so you can better analyze these patterns in real time. Let’s look at the DIA (Dow Jones ETF) on the 5-minute chart (any of the 3 major US Stock Indexes…
Apple Inc (AAPL) completed its buy signal and is running into potential overhead resistance which could temporarily halt the growing up-move in the stock. The buy signal I highlighted previously worked even better than I anticipated, with price gapping up multiple days to reach the first profit target – the resistance line at $170. Traders,…
I thought the rising support pattern provided by the 20 period moving average was interesting and wanted to show the diagram. I’m showing the DIA (Dow Jones ETF) on the 15-minute chart with a 20 and 50 period exponential moving average. While I often trade off the 5-minute chart, I view the structure of the…
Last week’s price action (particularly that of Friday) sent the major US Indexes to test key resistance, a break of which would change the calculus and give more strength to the bulls. 1,400 on the S&P 500 Index proves to be yet another powerful force that price is testing. Should price cleanly break this zone,…
Today’s price appreciation was nothing shy of stellar for the down-trodden bulls. Let’s take a look at some of the key points: Although price made more of a rounded top formation, the day clearly closed over 100 Dow points higher than yesterday’s close – almost all of which was a result of the day’s overnight…
Not to be outdone today, Caterpillar Inc (CAT) also clawed its way higher today via overnight gap thanks to better than expected earnings. Caterpillar is a Dow Jones Index component, and is a heavy machinery company that does business across the globe. Overseas sales have boosted this company’s profit margins, despite a slowing American economy…