With many Elliott wave practitioners puzzled at the current wave count, here is a possible mainstream interpretation of the latest Elliott Wave Count on the NASDAQ, which has had the most impressive run-up off the March 2009 lows. (click for larger image) As a caveat, keep in mind this is only one interpretation. This count…
Sometimes I like to look at the top 10 stocks that are extended most beyond their 20 day simple moving average as a guage of strength/weakness, and because it is a unique type of price scan. Let’s see the Top 10 and Bottom 10 most extended stocks in the S&P 500 above or below their…
Talk about stopping a market dead in its tracks – Copper prices have reached a target area of confluence resistance that offers a favorable risk/reward ratio if the resistance holds. Let’s these forms of resistance and what they might mean. Copper Prices Daily: There’s more to see on the Daily chart at the moment. We…
I’m finding the “Diagonal, Wedge, Trend Channel, or Rounded Reversal” discussion to be interesting, and so I thought I’d take a moment to define what a Leading Diagonal and Ending Diagonal are as defined from A.J. Frost and Robert Prechter’s Elliott Wave Principle book. Let’s start first with an Ending Diagonal: According to Robert Prechter…
So, what pattern is the S&P 500 forming right now? There’s three main possibilities using classic technical analysis at the moment – let’s take a quick look at these three possible patterns and what they might mean. First, it could be a standard “Rounded Reversal”: (Click on any of these charts for a full-size image)…
Many analysts follow the Baltic Dry Index ($BDI) as a gauge on the possible future pathway of commodity prices. The Index is a survey of what it would cost to ship certain raw materials by sea, which can sometimes be a leading indicator of commodity prices (supply and demand) themselves. Let’s look at the Index…
I’ve updated the NewsFlashr Business Blog “Editor’s Picks” section for the week with the following posts: Dr. Steenbarger of Trader Feed shares with us insights on how to Integrate Time, Price, and Volume to Generate Trading Ideas. Also – bonus link – “Five Things You Never Hear Traders Say when they’re Making Money” The Disciplined…
I renamed today “TICK Divergence Tuesday” in honor of the numerous TICK Divergences that gave valid trading signals on April 14th’s intraday trading (in the SPY). Let’s look at these TICK Divergences, two bear-flags, and a 5-wave Elliott Pattern that guided the structure of the day. (Click for full-size chart) The main purpose of this…
The Financial sector has fared mighy well since the interum bottom on March 6th. Let’s see the unique 5-Swing (Quintuple!) Positive Momentum Divergence and the famous Cradle Trade that formed recently under price. Let’s start with the Positive Divergence. Generally, you identify a divergence by comparing one swing to another – such that price makes…
Is a Bearish Rising Wedge forming in the S&P 500? Let’s turn to a pure price look at the S&P 500 index to see this structure potentially developing. When trying to be bearish in any degree off the March 6th lows, it’s as if the bulls are saying “Rumors of my death have been completely…