What did Richard Wyckoff have to say about general trading rules? As you develop as a trader, your rules should become automatic and routine, especially during the trading day. Let’s take a look at another colorful quote from Richard Wyckoff as he discusses Trading Rules in Studies in Tape Reading: “A friend to whom I…
With bad earnings putting Bank of America (BAC) in focus today, what is the message from the triple-timeframe structure of the charts in the stock? Let’s take a look starting with the monthly frame and drilling down to the daily chart, noting key levels and lessons along the way. With the exception of a “Last…
To follow-up with my prior morning post on the “Monday Morning Stock Index Update at Midpoint Value Areas,” I thought it would be helpful to show the current structure of the 1-min chart during lunchtime. In other words, we’re all watching the “Make or Break” 1,300 region, but what is the market saying? Let’s take…
Monday’s not off to a great start for the triple US Equity Indexes so far. Let’s take a look at the Dow Jones, S&P 500, and NASDAQ Indexes as they all sit atop the Midpoint or “Value Area” of their 2011 trading range reference areas. Let’s start with the Dow Jones, which shows a “Rising”…
What signals or clues are coming from the broader Sector Rotation Model as we see it in July 2011? Let’s take a look, starting with the data Year to Date: Consistent from our prior update in May 2011, the Sector Rotation Model continues to show Defensive/Protective money flows, which casts a cautious tone over the…
This week’s lesson from Richard Wyckoff serves as a reminder of the importance of doing analysis (charting) on the broader stock market indexes instead of relying exclusively on the price chart of an individual stock you are considering trading. Why? And how does that affect us today? Let’s hear what Wyckoff has to say on…
So far, there’s been no stopping the bullish power trend in gold, but that doesn’t mean you should rush out and put on an aggressive gold position just because price continues to rise steadily. Let’s do a quick review of a simple retracement strategy you can use to minimize risk and maximize opportunities in the…
We’ve all been hearing conflicting analysis as to whether the market will “certainly” be going up or down in the near future, but the reality is that the market is caught in a “year to date” tug-of-war between buyers and sellers which has given us clear reference areas to monitor. Let’s cut through all the…
If you’ve been following the US Dollar Index over the last few weeks, you’ve probably noticed a clean triangle-style consolidation phase setting up. Let’s take a look at the recent pause, note the dominant boundaries, and assess the higher timeframe structure in the context of the consolidation. First, the US Dollar Index – Daily: The…
I’m assuming most traders were surprised at the recent power-rally in the US Equity Markets recently. However, taken into the larger context or perspective, this rally formed off major “Make or Break” Confluence Support as best seen on the Weekly Chart. What started as a simple “retracement” buy-in has ignited a powerful “Positive Feedback Loop”…