Daily Commentary

How would you like it if an IPO you bought earlier this year increased almost 800% in the first year that you bought it? Would you be happy or would you be wishing you bought more shares? Such IPO results are extremely rare, especially in this troubling overall economic environment, and so it’s a great…

The following technical price pattern is extremely rare, but is worth ‘filing away for further research’ when it appears. It has a variety of names, including ‘saucer bottom,’ “U-Turn,” etc but the pattern is defined by a slow and steady decline in price until an equilibrium (base) level is reached, and then demand picks up…

I was a bit surprised that there wasn’t a more negative reaction in the US Dollar Index as a result of the Federal Reserve’s decision to cut interest rates by .25 bps. Typically, with lower interest rates, countries can expect their monetary indexes to be lower as a result of lower demand from foreign nations…

Being as that it’s Wednesday, let’s take a mid-week look at the current (fractured) state of the US Equity Market: Dow Jones Daily: Price did indeed find support at the confluence of the key moving averages, as I indicated earlier that it might. The move by the Fed apparently was not enough for the ‘cutters’…

Goldman Sachs today breached a triangle consolidation pattern to the downside, which has potential ominous implications for the broader market. Not only did price break beneath a triangle or coil formation, but price violated the significant “200 day moving average” which often is viewed by those with little technical analysis knowledge as the “line in…

I must say I was quite surprised by the ferociousness of the sell-off following the announcement from the Federal Reserve to cut rates .25 basis points. Typically, the market rallies in three pulses on those days but it appears the market discounted the expectation for a .50 point cut and was slammed instantly when expectations…

Before the Federal Reserve announces their decision, let’s take a very quick look at the current technical picture of the Dow Jones Industrial Average: Price is just under 400 points away from all-time highs. Price made a new momentum high (annotated NMH in the bottom oscillator) There is a convergence of support from all three…

Gold prices appear to be in the middle of forming a consolidation pattern that resembles a standard triangle pattern. This seems reasonable, given the immense run-up in gold prices following September (there was a minor triangle pattern – not shown – that preceded the recent large volatility move). Triangles are “pause” patterns that represent consolidation…

Deere and Company (DE) has been perhaps an overlooked giant the last few years. While people have been focusing on high-flyers like Amazon (AMZN), Research in Motion (RIMM), Google (GOOG), and Apple (AAPL), Deere has been creating similar patterns and similar price appreciations. Their 2 for 1 stock split earlier this week made the stock…

It’s time to take a brief technical look at the stock market and see what’s happened and what may lie ahead. From the top (using the Dow Jones Industrial Average), we are in a daily downtrend and are threatening to be in one on the weekly charts. Prices have risen in the previous upswing to…