I describe the market action before the opening bell and after the close and discuss set-ups for the next day.
Yesterday was a wonderful day for trading, as the market signaled a daily short-sell set-up and the intraday action unfolded beautifully with pure price swings and clear resistance/support levels. Rather than muddy up a chart, I thought I would indicate the pure action using the 15-minute chart with nothing but price and moving averages. Moving…
The second earnings season of the year is set to begin at the close today (April 10th) when Alcoa releases its earnings for the first quarter 2007. Other Dow and S&P components will release earnings this week and next as well, meaning that volatility and possible market gaps are likely if actual earnings differ from…
We survived the Jobs data to the upside, with positive surprises higher than expected. Perhaps the economy is doing better than expected? The Jobs Report is a lesson in how good news can be bad news for the market, and that a deeper level of analysis is required for proper market study. While there are…
Following the surge Tuesday, the market is consolidating yet again, but this time the likely culprit is the upcoming holiday weekend (the Market will be closed Friday) and the release of the Jobs/Economic Report Friday morning. The report often swings the market quite forcefully in either direction, and for short-term traders, it is often best…
We finally got the range expansion as expected in the major market indices, and the market has broken (again) to the upside as was also forecast, especially in light of the rampant negativity on the general state of the market. Is it surprising that, with all the negative sentiment around, the market rose yet again…
I am sounding like a broken record, yet so is the market. We have reached a clear equlibrium point and soon price will break one way or the other out of the consolidation we are experiencing. Remember, the longer the consolidation, the larger the move, yet it is difficult to predict which direction price will…
The Dow rose 5 points today, but that headline eliminates all the price action that occurred today. As mention yesterday, we are still trapped between the 20 and 50 period moving averages as defined support and resistance on the daily charts. The Nasdaq is also trapped: The S&P 500 sits comfortably on its moving averages…
Believe in the power of Moving Averages! While no technical indicator is perfect, or gives totally accurate signals, moving averages can provide reliable zones of support and resistance in trending markets. Today is a unique day in the Dow Index, in that the market tested both the lower 2o period MA (for support) and the…
Today was an active day in the equity markets! The news of the day was Chairman Bernake’s testimony which rattled investors early this morning. Remember, news is difficult to predict, but the momentum action creates a predictable trade idea with high probabilities of success. Today was no different. We had a test of the most…
Today provided a great example of how one day, your system will work and the next day, the system does not. Nevertheless, the insight is that it is crucial to follow your system, rather than take random trades and achieve random results. Compare the 15 minute charts of yesterday and today. While I trade with…