Daily Commentary

Freddie Mac (FRE), chartered by Congress to increase the supply of money that mortgage lenders can make available to homebuyers, recently suffered an astounding price decline and horrific downtrend that culminated in a potential exhaustion gap which has now been virtually eradicated. The stock represents a unique company that is at the center of the…

If yesterday was an ideal intraday trading environment, today was a relative nightmare. Such is the nature of the market to alternate between good periods and bad periods, trend and consolidation, favorable environments to unfavorable. We recognize that the market adheres to the “Law of Alternation” in various aspects, and we can expect consolidation and…

Today’s price action in the major US Indexes can only be described as “wild.” The day began with an upside gap, continued with a failed gap-fill attempt, experienced rallies to new (intraday) highs, and then a massive selloff which gave way to a massive rally into the close. Traders were left with their heads spinning unless…

Perhaps it’s more of an esoteric thing when a stock plays to the exact tune of the expected Fibonacci Retracement, but these instances are absolutely worth mention. Today, Google found daily resistance right at the daily 61.2% retracement (of the recent down-swing) and found support (closed) right at the 38.2% retracement. Both levels halted (contained)…

AIG recently made new lows not seen since 2005, but what was significant was that the stock made a classic “Bull Trap” pattern which probably made the decline more severe than it should have been. Bull traps occur when price seems to clear a major barrier or resistance area (such as a key moving average…

As I mentioned was a possibility in a previous post, the Dow Jones Industrial Average tested the closing lows from August at 13,800, and has found temporary support there. Whether buyers will hold this level is yet to be determined, but they have a chance at these levels. The pre-holiday periods usually are bullish days,…

We know that the housing market is under duress and has been for some time, Freddie Mac (government assisted mortgage lender) [FRE] has suffered significant stock price losses over the last few weeks that has wrecked absolute damage on the price charts. I have chosen to display a weekly chart in arithmetic format just to…

I have returned after the Trader’s Expo in Las Vegas with new knowledge, new connections, and new information.  For those of you who were unable to make it this year to Vegas but wanted to attend a Traders’ Expo, the next event will be held in New York City in mid-February.  I truly recommend newer…

I’m excited to announce that I will be in Las Vegas attending the Traders Expo from Thursday, November 15th until Sunday, November 18th. This will be my fifth Traders Expo and I have loved each and every one of them, including seminars attended, contacts with other traders, product demonstrations, and everything. I even love Las…

The strength of today’s upwards action may have shocked some people, but let’s look at some factors that let us know today’s action wasn’t so surprising indeed. First, we were deeply oversold by most oscillator indicator readings (RSI, Stochastic, etc) on the US Index Daily Charts. Second, we experienced a large volatility, high momentum move…