Daily Commentary

I am relatively surprised with the relative bearish ferociousness that is occurring in many high-flying technology stocks and the broader indexes at the moment. Let’s take a closer look. We expect prices to move in relatively stable and tradable “swings” in terms of action/counter-reaction, buying impulse/selling counter-impulse in a seemingly perceivable rhythm. It’s when this…

Inter-market relationships are seemingly following their script. Interest rates are declining (bond prices are rising), commodities are rising, and the dollar index is declining. There has been absolutely no relief for the US Dollar Index, and it has continued to make new lows. Today, we registered a new momentum low, which indicates slightly higher probabilities…

Traders can often find ‘sleeper stocks’ that offer great potential for profit by running sector and industry scans and determining which industries have been showing greater relative strength or weakness over a specific period. The following results are from a three-month industry group scan from Prophet.net (the graph dates are read right to left in…

I’m sure a great many stock market traders and especially investors were dismayed and potentially shocked by the severity of today’s action in the major US Indexes. First, we had a large volatility up-day regarding the decision by the Federal Reserve to trim the Federal Funds rate by .25 basis points. Typically, traders expect such…

Per recent reader request, here is a brief swing chart or divergence look at the Platinum and Oil charts: (Chart: TradeStation) Jonathan correctly identified a developing momentum divergence forming on the daily futures chart for Platinum. The last ‘swing high’ took place at $1,400 and then now we made new price highs at $1,475 and…

I have to admit – rampant volatility and major updays followed by major down days are – to me – rare in the market.  So, when such an example happens, it is always interesting to delve deeper and learn what ‘went wrong’ so that we can have a greater chance to profit or avoid mistakes…

The Dow Jones Industrial Average, as well as the S&P 500 are showing a similar technical picture – that of strength in the face of ‘danger.’ Both major US Indexes inflected nicely off a solid level of support, drawn on both charts, which has both served as support and resistance over the last few months. …

The headline may sound like something out of The Twilight Zone but that is exactly what happened with the anniversary of the 1987 Stock Market Crash on October 19th, or Black Monday. The Dow Jones Industrial Average surrendered 367 points (-2.64%), which drove price definitively through the rising 20 and flattening 50 period exponential moving…

The upcoming week is expected to be wrought with many earnings announcements from various companies, and so the week ahead could be volatile if there are some surprises in store. Nevertheless, let’s take a graphic look at the current daily chart of the Major US Indexes: The Dow: Volume and momentum are declining as the…

Was today’s action surprising to anyone? To everyone? I was surprised just like everyone else. Luckily, I enter and exit the majority of my intraday trades in the first three hours of market action, but I was stunned to see the velocity and ferociousness with which the sellers drove prices down in the indexes and…