Daily Commentary

The last two days in the major market ETFs have shown gap opportunities, though the gaps have (yet) to close on both occasions. Also, interesting momentum impulses have developed which warrant an educational lesson. Let’s see: DIA (Dow Jones ETF) 5-minute chart: First, notice the purple ovals, which represent overnight gaps. While January was a…

As I mentioned in last night’s post, I saw some bullishness underlying the market from the fact that the sellers were unable to take prices lower than 12,500 three times in the last week. Also, the classic bear flag which formed wasn’t resolving with any satisfaction, meaning that the pressure was building behind the scenes…

Old Dominion Freight Line (ODFL) recently experienced a major momentum impulse price move up, which resolved a growing positive divergence and has set up a Sweet Spot trade. Let’s see what this amazing stock has done in 2008: Notice that as price was experiencing resistance around $25.50, the momentum oscillator was showing positive conditions through…

Could the US Dollar Index be forming a bottom? That is the $64,000 question, no doubt, but the index which has been marked down to new lows is now showing early signs of potential strength. Make no mistake, the US Dollar Index is in a confirmed daily (and weekly) downtrend, but price has managed to…

Ok, not literally, but investors in Walt Disney Inc (DIS) have enjoyed the recent rally in 2007. While the stock remains in a confirmed daily downtrend, the famous stock may be showing early signs of new life. First, let’s look at this chart from an educational standpoint: Notice the almost rhythmic wave-like structure in the…

As we slide into the mid-day doldrums, I thought it would be interesting to look at the action in the DIA (Dow Jones ETF) so far to see some educational and trading opportunities in the price action so far. Two lessons are forefront today from a technical picture: First, the “Fade the Gap” strategy is…

Hong Kong’s Hang Seng ($HSI) Index plummeted 5% today, after ejecting out of a moving average squeeze pattern following a descending triangle technical pattern. The Index fell 1339 points to close at 23,469. The frequency of gaps in the chart from StockCharts.com is due to how the software records prices and times, keeping in mind…

On the US “Super Tuesday” when almost half of the states held a primary election, the US Stock Market slid 3%, casting its vote against the major candidates. No seriously, the weak consumer services sector, which comprises a large percentage of the consumer spending category, took a major hit today, causing the markets to resume…

It’s a new month, and the market may be off to a new character change once again. There have been three trading days in February, and so far all three days have experienced an index gap, of which only one has filled so far. Let’s look: There are a few things to note in this…

Google (GOOG) dipped beneath $500 per share today for the first time since August, 2007. Google has been on an almost solid decline since early 2008, and price has depreciated 32% from its all-time high of just over $740 per share: Notice the “triangulation” action which took place from early November until the price breakout…