Daily Commentary

This week, AAPL, as a likely direct result of the success of its iPhone sales/hype, broke out of a triangle consolidation chart pattern. Remember the market rule “Price alternates between expansion and contraction” as supply and demand gets imbalanced following a period of quiet (rangebound) trading. Price is now extended short-term above the upper bollinger…

Happy 4th of July! The markets are setting up interesting swing patterns and are exhibiting both consolidation (which makes sense) and momentum divergences. Neither bulls nor bears are making significant headway in the last few weeks of trading, and little – except some shock – is likely move investors either way soon. The Russell and…

It’s rare when a particular moving average will capture (halt) the price action exactly, but these averages often serve as areas of support or resistance. Today’s action was no exception; in fact, the Dow tagged the 50 period MA and the Nasdaq ‘tagged’ the average almost to the penny before rallying sharply to close up…

Monday was an absolutely wild day for traders, with a large volatility price swing. As hectic as the trading day was, an interesting pattern emerged. The intraday low coincided with the rising 50 EMA and with the round number 13,300. This was a significant support area. The high of the day coincided with the flattening…

I had to point the Blackstone IPO (BX) chart out to readers, simply for its major irony to me. I watched a television report where it showed a montage of news sources that were literally giddy with excitement discussing the Blackstone Financial Group IPO and how it will make investors so much money and how…

Here are a few bonus charts for your education: Potash (one of my darlings) We were stopped out of a 7+ day swing trade in Potash today when price was identified as ‘parabolic’ and we began trailing a stop beneath yesterday’s low which worked until today, and this method saved about $2.00 of profit that…

Today did some technical damage to the major indexes, with the Dow being spared breaking its 20 period moving average, as the other indexes have done. We are seeing possible unwinding of developing momentum divergences in many of the indexes (especially the Dow). We also see price rejection in the indexes as well as we…

Technically, I should be waiting until this weekend to post weekly index charts, but these look so beautiful (so far) that I couldn’t resist. With the exception of the Nasdaq and Russel (technology & small cap respectively) the weekly charts of the Dow and S&P are making new all time highs as well as new…

Today’s action was nothing less than stellar.  The gap up in the morning led to a bear-flag like correction to the moving average (consolidation) and then it was quite literally off to the races when the Fed Beige Book hit the newswires. First, two index charts showing price trapped (for now) below the rising 20…

Here are a quick charts of the Indexes: Holding the Bottom Bollinger Band Lurking above the 50 period EMA Market making new momentum lows Stochastic registering a buy signal Volume increased today on the sell-day… distribution Clear momentum divergence now unwinding Support should be 13,200 until it fails Has not reached bottom of Bollinger Band…