I describe the week’s actions and discuss where we are in the market for the upcoming week.
A reader emailed me to ask about the relationship between Dow and Gold, specifically the Dow priced in Gold, which is essentially a relative strength chart of the Dow Jones Index to Gold.
Before you view the chart, a quick warning: It’s not pretty.
With Volatility increasing in the stock market, investors/traders are paying more attention to the Volatility Index, or the VIX.
Let’s take a look at the key reference levels, starting with the 2007 market peak to the 2009 market bottom, and the recent April 2010 market peak and draw some interesting comparisons.
The recent weakness in the Euro and global economic uncertainty – along with the Dollar’s status as a Reserve Currency – has sent the US Dollar Index surging.
While you may be aware of that, you might not be aware that the recent rally has taken us to upper price levels not seen since the November 2008 and March 2009 lows.
We’re now at a key resistance level that, if broken, will officially turn the long-term trend of the US Dollar Index back to up… which would be a major reversal. Let’s see it.
After a major incident involving the stock price of a particular company, it’s always interesting to take a look at competitor companies to see how the incident has affected the share prices of related companies. Did it have a similar affect across the whole sector… or was it contained to the price of one particular…
If you’ve been focusing your attention last week on the volatility in the stock market, you may have missed the sharp sell-off in crude oil.
With half the month behind us, Crude Oil prices are down $12.50 (14.50%) for the month of May.
It’s that time of year again! The Los Angeles Trader’s Expo is now two months away so it’s time to make plans now to attend! The mid-year Expo will take place from Wednesday – Saturday, June 9 – 12. The Traders Expos are great places to meet fellow traders, network with other traders and enthusiasts,…
We’ve already heard comparisons in terms of the fear, panic, confusion, and volatility of May 6, 2010 to October 19, 1987, so let’s look at the pure price charts to see if the comparison extends beyond that.
First, a look at the daily S&P 500 chart of the run-up then crash of 1987:
Today will be one of those days we reference for a long time to come.
On such days, it’s helpful to take a breath and assess the cross-market movements as seen on the five key inter-market ETFs as shown below.
Let’s look at the daily chart and take a quick overview of the S&P 500, Gold, Oil, The Dollar Index, and Bond/Note Prices.
For those of you who follow key market internals on an intraday basis, you almost certainly noticed that today’s break to new recovery highs in the S&P 500 was not confirmed (really in any way) by any of the three key market internals. That’s a warning signal but not yet a ‘reversal’ signal unless we see follow-through with lower prices.
Let’s take a quick look at the internals and intraday chart as we wind down into the close on April 15th.
The folks at EWI (Elliott Wave International) released a provoking new article today entitled: “Blaming Market Manipulation for Losses is a Huge Obstacle to Success.” The article encourages traders to take responsibility for losses instead of finding scape-goats to blame. Losses may have just been the result of a bad outcome from a high-probability trade……