I describe the market action before the opening bell and after the close and discuss set-ups for the next day.
With so many charts showing ‘euphoric’ gap patterns (often based on earnings releases/momentum), I couldn’t pass up posting today’s action in Amazon (AMZN) which increased 27% in one day! By the way, the Nasdaq made a fresh 6 year high and the Dow closed comfortably above 13,000, making yet another all-time closing high. Headlines and…
I must admit I am impressed with the strength of the recent rally, especially in the market leading Dow Jones Index (which is still just comprised of 30 large-cap stocks). The Dow came within 10 points of touching the psychological 13,000 mark today, and it appears likely we will test this high soon. What people…
How is it that a company reports higher profits, yet its stock price declines intraday? This phenomenon is quite common, where what a new investor expects (or even common sense expects) to happen does not materialize, and in fact, the opposite occurs. Consider two examples from Friday, April 20th, where the Dow set new highs…
Every day last week, we saw price advances in the Dow Jones Index, and we witnessed new intraday and closing highs in the Dow. I mentioned last week that if we broke resistance at 12,800 (likely), then we would see a hard rally off this point to the upside. After “scraping” it last week, we…
The Dow and S&P 500 just made new and impressive highs above the February swing high and seemingly continue unabated, despite temporary overbought oscillator conditions. In trending markets, oscillators are useless (RSI, Stochastic, etc) and people can get very whipsawed using them in positive feedback environments (where higher prices lead to short covering and new…
My hat is off to the Bulls and Buyers – the Dow reached not only a new intraday high, but a new closing high. The psychological barrier of 12,800 is now breached (officially closed at 12,803). The psychology of investors and traders ranges on disbelief and relief. I’ve read a few accounts of traders using…
The last two times the Dow Index has approached 12,800, it has failed. We had a failure today, as the number served as resistance, but the mere fact that we are testing resistance for a second time might indicate that it will be broken this time. Should the resistance zone (by price) be broken, there…
The market is showing renowned strength over the last few sessions – my guess to the surprise of so many people. I have been commenting that the technicals and price action ‘trump’ news and sentiment, and this is indeed the case. With so many people openly bearish on the market, it is little surprise that…
From time to time, I will post results of my scans regarding industry and sector analysis. How to read these charts: Colors are read from right to left as money flows into an industry (red on right to green on left) The numbers – 100 for example – mean percentile of industry groups (in terms…
Today’s action was surprising in the degree and reliability of the (intraday) trend, especially given the down trend (intraday) yesterday and its smoothness. Today’s trend swung with reliable entries and position addition points, which could have resulted in a rather large profit. First, the Dow reversed course when it reached support at the daily convergence…