I describe the market action before the opening bell and after the close and discuss set-ups for the next day.
Have you been a bit befuddled by the recent stock market action? I admit that I have, but I expect such events and have experienced various strange scenarios in my trading career. If you are new at trading, the current market environment must be difficult to comprehend and I wanted to state a few of…
Attached are swing charts with the 3/10 MACD momentum oscillator. The most recent daily bar on each index turned red following the decline, meaning we have extended 2.5 Average True Range readings from the market peak (near Dow 13,700 and S&P 1,540). I know I write a lot that “Momentum Proceeds Price” in the form…
Normally, I like to post charts of the general indexes and do minimal annotations and speak from the perspective of my own swing charts and momentum readings, but I wanted to showcase a few excellent brief commentaries on today’s action. TraderMike writes a very concise yet informative post with an excerpt from the Worden Report…
For those who study sector rotation as a method for understanding the broader market, there are ominous signs on the horizon for the broad market if the model is correct. In a summary, sector rotation theorists believe the market functions in an orderly progression where certain sectors outperform at certain phases in the business cycle,…
I wanted to point out the recent action in the Dow Jones Utilities Index – it is a lesson on how momentum divergences play out. First, the chart: I have not annotated this chart (with trendlines) to show the divergences – note both oscillators making lower swing highs while price makes increasingly higher highs. Divergences…
We have survived this ‘heavily ladened’ week of economic reports, and the S&P along with the Dow Jones have made new lifetime highs. Such action is impressive when reports indicate that first quarter GDP grew at 0.6%, or the worst reading since 2002. We still have one trading day ahead of us before the weekend….
For you pure day-traders and even swing traders, I know you check the upcoming economic calendar and key earnings releases daily, but be aware that this upcoming (shortened) week, we have a lot of potentially major market moving data hitting us all at once which calls for extra caution. Check out the article “Wall Street…
Here are some daily charts of recent market action from a momentum-divergence standpoint: Momentum is diverging, as buying pressure appears to be subsiding. Market is pulling back to possible support at the rising 20 period MA (has it already found support?) Chart is extremely bullish Resistance (three ‘scraping’ candles) at round number 13,600. If surpassed,…
Analyzing financial stocks can be helpful in determining trends in the broad market, but I also like to highlight interesting chart patterns or situations. Regions Financial (RF) has been swinging in a tight yet relatively predictable swing trading range over the last year and neither has upside or downside momentum. Most financial stocks provide comfortable…
Investors certainly are skittish lately. One of the biggest drags on the economy – many economists say – is the declining housing market and its effects on the American consumer. With stock prices still advancing, bad economic news has had little effect on the general market, at least not to the extent expected. We recently…