Daily Commentary

General Electric (GE) is showing strong relative strength over the past month, and could be waking up from a long downward slumber. Let’s check out this surprising new development on the charts: Price underwent a “Power Buy” swing, which took out the most recent two prior swing highs, showing signs of sudden and powerful life….

Wednesday was a very interesting day in the US Stock Market Indexes. A few classical patterns played themselves out, which provided lucrative trades to those who were nimble. Let’s look at some of them: This morning’s impulse gap down, with large range first 5-minute bar was the first clue that the day could be a…

Apple Inc (AAPL) has been on a steady recovery since its mid-February $115 ‘bottom,’ and has formed a rounded saucer bottom which could turn into a classic ‘cup with handle’ upon the next retracement which seems likely. Price rounded up off the Feb. 25th low to enter a powerful and sustained ‘bull move’ up. Resistance…

The Dow this morning formed a near idea bear flag pattern that revealed itself to savvy traders. The only thing keeping this pattern from being ideal was that the market was unable to retrace back to the falling 20 period moving average, which was a further sign of market weakness developing. Ideal entry (short) would…

The most recent intraday price swing on the indexes was amazingly smooth and I had to highlight its recent development: It’s almost as if someone threw a ball into the air, watched it slow down before its ultimate peak, and then is watching it returning back to earth. Typically you see deeper swings in the…

Google (GOOG) stock has been beaten down by the bears since last November, when the stock made an all-time high near $750. Recently, the stock traded to a recent low of $425, but may the stock be forming a base? The Daily chart shows a recent positive momentum divergence, following a bear-flag continuation patter which…

Wow, what a day in the financial markets! The NASDAQ (QQQQ ETF) rose 3% today while the other major markets rose 1.5%. Let’s look at a few key charts and see if we can determine what may happen next. First, the Dow Jones daily: The market action today was very impressive, and rounds out a…

The major Commodities Markets were not spared the rampant volatility of last week’s price action. Let’s take a look at some of these key markets: Let’s look at the broad-based $CRB, a widely followed Commodity Index (weekly chart): I have drawn three blue lines which are indicative of the “Three Push” pattern which can precede…

Traders expressing themselves through the InTrade Prediction Market today raised the chance of a US Recession in 2008 up 8% to 78.5%. The way the market works is that traders invest real money and buy contracts that allow them to express their opinion. Here is a quick explanation: If you’re interested in seeing the lifetime…

Gold plunged almost 6% yesterday, falling $59 as hedge funds unwound positions and speculators took profits in the precious metal. It’s an interesting development that warrants further attention. I’ve drawn in two symmetrical consolidation triangles on the graph that highlight these patterns and the continuation move that occurred as the contract broke free from these…