I describe the market action before the opening bell and after the close and discuss set-ups for the next day.
Did anyone else find it concerning that President Bush, in a news conference yesterday, was astonished by a reporter’s question asking what would be the effects of gasoline prices at the pump reaching $4.00 per gallon by the summer? It would seem like his team of economic advisors would have alerted him to this possibility,…
Today was in interesting day in terms of intraday analysis and trading. Let’s take a look at what happened today! First, the idealized trades in the SPY on the 5-minute chart: While the chart may seem garbled, let’s take it step by step. First, notice the gap fade trade that resulted in a bear flag….
As I mentioned in last night’s blog post, index prices had hit probable resistance, formed a doji, and were poised to head lower. Today, prices headed lower, forming dual-bear flags as further confirmations. Notice the first bear flag which set-up into yesterday’s price close. You have the first push down which is followed by a…
Could the US Dollar Index get any lower? Absolutely, as today’s price action showed us rather resoundingly: Not only did the index make new price lows, but it made new momentum lows, which could forecast even lower prices are yet to come. The index closed at $74.17, violating the late November price low of $74.50….
The Dow Jones Index has hit an area of supply today which may serve as an area of resistance. Let’s look: The 12,800 index level has served both as support and resistance during the last few months, and this area of supply is being tested currently. Notice the doji candlestick that has formed at this…
Today, Google (GOOG) shocked traders and investors alike, blowing past potential support at $500 per share and gapping down on significant volume to form a semi-hammer pattern. Let’s look before describing the picture: First, notice the massive triangle break-down toward the end of 2007. This led to a large volatility price move to the downside…
The market continued to defy the odds today and make new (relative) price highs in a price continuation move out of the recent triangle pattern break. This is a case where the technicals (price patterns) trump the fundamentals/news, as today otherwise would have been an immensely bearish day for the US Stock Market indexes. Let’s…
Virtually every trader who uses charts has seen the recent symmetrical triangle forming in the major US Stock Market Indexes. Did we get a break-out buy signal today? From the chart (and zoomed in image), it would seem that indeed we did have a triangle breakout buy signal today, but notice that it was not…
According to a recent article by Rich Miller of Bloomberg entitled “Bernanke, Bush Fail to Build Better Economy with Cuts, Stimulus,” the recent economic stimulus may be nothing more than a short-lived, minor patch to a stumbling economy. I wanted to highlight a few key quotes from the article for your consideration and education: “The…
There is so much talk regarding the US Stock Market triangle pattern, but did you know there were two recent triangles in the price of Gold? Let’s see what happened: The symmetrical triangle which formed through November until January broke to the upside as a continuation pattern and met its price projection target before reversing….