Indeed today will be remembered for quite some time, but as history tells us, a 4.7% down move in the S&P 500 is not the end of the world by any means. In this post, I list the previous 4.00% down moves in the S&P index and then run a study on what historically has…
With today’s activity being so volatile, let’s take a quick look at the percentage change rank of the Dow Jones Industrial Average 30 stocks. The Dow 30 ranked by percentage (as of 1:15 EST): Bank of America (BAC) and Citigroup (C) are posting double-digit percentage losses, while Coca-Cola (KO), McDonalds (MCD), Home Depot (HD) and…
We could see a week ahead that will be discussed years later – as such, if you are a newer trader, it might be best to switch to simulation mode this week or use this week as a training experience, rather than risking real capital in an environment that could swing violently up and down…
A number of readers have asked me to define what chart settings and indicators I use and I thought I should post regarding this information. I trade with TradeStation and do all trading through them, but for the blog, I enjoy posting charts from StockCharts.com because of the professional look and feel of their charts,…
I mentioned in yesterday’s post that the market is trapped in a defined range, and that a break out of the range will produce a likely sustained move. A reader asked me to highlight potential targets if a break-out move occurred, so I want to take a quick look at S&P potential price targets should…
It sure would be nice to have a continuation move one way or the other, instead of this constant big up, big down choppy environment we’re experiencing – these conditions can’t last forever so hold tight while we’re in them. Let’s look at the daily Dow Jones and today’s intraday chart (complete with gap fade)…
Financial company Lehman Brothers (LEH) has been under intense media scrutiny due to the recent price plunge and charges of potential financial instability. Let’s look at the chart structure from 2006 to today and see what clues may have been evident, or how you could have managed risk in this stock. LEH Weekly: The larger…
I noticed a really interesting version of the “rounded reversal” pattern on the intraday charts of Goldman Sachs (GS) today. Although I missed this trading opportunity, I wanted to share this as an example of a variation of the pattern and how it might have been traded successfully for a low-risk, high probability profit. Let’s…
Not too long ago, a reader asked me to take a look and discuss the Steel Index for any insights. Presented below is the current daily and weekly structure of the Dow Jones Steel Index. One could look at X (US Steel) for a stock that is very similar to this broader index. DJUSST Weekly:…
Those following gold may take note today of a fresh new low formed for 2008 in Gold and the GLD ETF. Such a development may have been unimaginable earlier in March or July but such a move has occurred. Let’s take a quick look: GLD (Gold Trust tracking ETF): I’ve drawn this chart starting in…