Daily Commentary

What do these three stocks or indexes have in common? Each is showing a strong impulse sell move that is just confirming and is underway. First, let’s look at the Dow Jones Index: Observations: Price is in a confirmed daily downtrend. Price failed to muster enough strength to test the falling 50 period MA Price…

Traders were relieved to see the recent upswing in the markets, leading to a weekly gain of 2.29% in the Dow Jones Index. I wanted to make a few quick points from a technical analysis standpoint regarding the current price position of the Dow and similar pattern of the S&P 500. Volume declined significantly during…

The US Stock Market absolutely astonished most if not all traders today with a harrowing price plummet early in the day with normal corrections and continuations, but the stories will be written about today’s amazing price action likely will not focus on the fact that the Dow fell 300 points today, but the fact that…

Larry Connors recently provided his observations on the current market climate in his compelling, yet interestingly titled post Welcome to the Bizarro World. Larry provides not only a brief overview of the ‘strange situation,’ but provides five key strategies for you to consider to help you prosper in your individual trading. He attributes the recent…

There’s a clear theme emerging in the market action regarding intraday price movement. The majority of the price activity of the day takes place within the last hour of the trading day as traders either nervously take off positions or confidently put on large positions. The activity of the larger funds combined with panic (of…

I’ll be honest – I am SO relieved the weekend is here. This week has been the most surprising week of my trading career. I have seen many sharp increases in volatility in the market (not associated with a major economic report), but those events tend to be isolated and relatively rare. This week, we…

The last hour of the trading day is becoming ‘golden’ in the sense that volatility and range become rampant as traders struggle for position before the close.Today’s action was a reverse of yesterday’s down action in the last hour… only this time, the 250 point sudden increase in the Dow took place over the last…

I’ll be honest – the ferocity of today’s last hour decline took me by surprise and took me out of a few positions.  From the top of today’s range (13,498) to the bottom (13,199), the Dow ‘lost’ 300 points today in steady decline. The opening hour above yesterday’s close lured in new buyers hoping everything…

While doing my evening scan, I found the following stocks very interesting from the standpoint of major technical damage that has occurred to them over the following days during the market decline. Of course, I am not advocating trading these stocks – I am only noting that these have interesting patterns that have taken down…

In this case, pictures speak more than words. Both in the Dow and the S&P 500, price sits mere breaths above key support zones and are threatening to break them.  Buyers should take the opportunity to step in and support the indexes, but should they not, odds would favor much lower prices as stops are…