I describe the market action before the opening bell and after the close and discuss set-ups for the next day.
The Financial Sector (XLF) has been featured majorly in the news recently, so let’s take a quick fly-by of this sector and see where we’ve come. First, the shocking monthly chart: Very rarely do you see declines of this magnitude occur this quickly (in about one year) in a major US Sector. The Financial sector…
Tuesday’s volatile rally was impressive, amassing over 4% for almost all major US Market Indexes. Where does that rally take us on the charts? First, let’s look at the returns: Now, let’s view a few charts, noting the potential overhead resistance that must be cleared to be able to get more bullish: The level just…
Unless the Fed Cut shocks markets to the downside, Goldman Sachs (GS) will post an incredible rally today. Yesterday, the stock traded as low as $140, and today, we’ve reached intraday highs of $171. Let’s look: Earnings today beat estimates. Analysts expected a profit of $2.58 per share, but were surprised with reports that Goldman…
Although many bloggers (myself included) were using Bear Stearn’s Monday’s decline from $30 to $2 as a reason not to stress NOT catching a falling knife, one can’t deny today’s result – which is that the stock has more than doubled intraday from yesterday’s close. From an intraday low near $3.50 yesterday, Bear (BSC) has…
Monday was a day to remember in the US Stock Market. Let’s look quickly at what happened: The Dow Jones (up 21 points today) showed the most relative strength today, thanks in part to JP Morgan Chase (JPM) which appreciated 10% today. Unfortunately, this came at the expense of Bear Stearns (BSC) which closed the…
As if you weren’t looking for another reason to be amazed by the current market, the weekend developments sent shockwaves through the US Stock Market, causing a 2% gap down Monday morning opening… which has already been erased less than 2 hours later. Just imagine the fear and panic as the unaware traders turning on…
While Friday’s action was quite volatile, there were actually some very profitable and simple trades you could have taken within the price structure on the day. Let’s look at the DIA (Dow Jones ETF): The day did not begin with a significant gap, yet within the first 30 minutes, price had fallen from $122 to…
Bear Stearns (BSC), one of the major US Financial companies, lost half its value intraday today on concerns that the Fed’s recent liquidity injection “might not work” for the company. Instantly, the Federal Reserve voted unanimously today to provide cash to help this crisis, and stands ready to inject more as needed. As reported by…
I wanted to post the amazing gap fade that took place earlier today: The morning started with a large volatility (150 Dow point) gap as the economic news was very bearish this morning (oil and gold at new record highs, signaling inflation, and a larger than expected drop in retail sales). The market, however, shook…
Yesterday’s intraday action took prices to the falling 20 day moving average, and the resulting close formed a candlestick pattern known as the “shooting star” which happened to form at this key resistance zone. What was the result? A powerful move to the downside this morning as the psychology represented by this pattern played out….