Weekly Commentary

With the US Dollar Index having made new lows, the price of gold has been making new highs. This makes sense from an intermarket relationship, but let’s take a recent look at the chart for more insights. First, gold’s weekly chart: Notice the triangle (not drawn) throughout 2006 which broke strongly to the upside in…

In the weekly review of the S&P 500, there are some interesting chart points to note. Let’s look at the up to the minute charts: The daily chart is working off a new momentum low, which indicates a probability that the new price low has yet to come. The S&P and Dow Jones are both…

Let’s take a rapid look at the major US Indexes as we start the new week: First, the NASDAQ Daily: Bullish Divergence preceded the recent 200 point rally (divergence is now complete) Price rests at the falling 20 period MA – bearish Price is in a confirmed downtrend Volume has accelerated majorly and has made…

According to the Sector Rotation model, a bit of bullishness may be underlying the recent market moves. Let’s see: As of early January 2008, funds have been taking money out of Energy and Technology stocks (which were major winners of 2007) and are pouring it into the beaten down Financial and Consumer Discretionary Spending Sectors,…

Here’s a quick Monday afternoon snapshot of the current US Indexes and what may be in store for this potentially volatile upcoming week: First, where the Dow Jones Index stands: 2008 has gotten off to a very bad start January is on course to set new lows on the index, which is bearish due to…

Here we analyze the absolute returns of the nine major US Sectors of the US Stock Market and their performance (in percentage terms) so far for 2008: All sectors lost money so far in 2008, with Technology (green bar) and Energy (black bar) losing the greatest amount to date. Financials (-6%) and Consumer Discretionary (-5.6%)…

With the market turmoil not contained to the US Market, I thought it would be productive to highlight the weekly charts of some of the major countries of the world. I will be using the MSCI iShares from StockCharts.com for the quick fly-by around the world. Let’s fly around the world, starting with Brazil: Brazil…

The Dow has fallen from a peak of above14,000 to a recent retest of 12,000. I remember those days! It seemed like only yesterday that the market was full of fear, worries, anxieties, and talk of a possible recession, credit crunch, inflation, [insert worry here]. Yet, the market kept shrugging off this talk of nonsense…

Lehman Brothers Holdings (LEH), a major financial company, recently ejected through a couple of technical analysis patterns worth noting that serves as an educational lesson on moving averages, patterns, support, and resistance. It would appear more downside is likely based on the recent break. I must first state that technical analysis is more of an…

Folks, this may be it – the day when people realized that the ‘easy-go-lucky’ days of the market are behind us and harder trading and investing days are likely ahead. While there are no guarantees, the odds have now shifted so that the ‘path of least resistance’ is now down on all respective time frames…