Wow – this week gave us some fascinating action on the US Stock Market indexes. Let’s look quickly at the state of the S&P (daily and monthly chart) and then take a peek at what I saw and commented yesterday on the Russell, which came to pass today. First, the S&P 500 Daily Chart: First,…
Consumer staples (defensive sector) stock Johnson and Johnson has performed rather well in the current uncertain economic environment, as funds and investors have rotated into perceived stable sectors as of late. Let’s see the result of this flow and if there’s a potential trading opportunity now in this stock. Johnson and Johnson (JNJ) daily: Price…
Something interesting is potentially about to happen on the Russell 2000 Small Cap index, and something quite impressive has already just happened. Can you guess what occurred? First, let me start by saying that the Russell came just points shy last week of eeking out a new high for 2008, but was successful in reaching…
If you’ve been frustrated by your trading results for any of the quarters this year, or for the year to date performance, you’re not alone. Many hedge funds, institutions, mutual funds, retail (at home) traders, and almost the whole spectrum experienced underperformance at least at some point since the market turned in October 2007, so…
I just came across a massive resource blog/website with information pertaining to those interested in many aspects of hedge funds that I wanted to share with you. Hedge Fund Blogger describes its site as “Hedge Funds – 500+ educational articles on Hedge Fund and Fund of Hedge Fund managers, jobs, strategies and investments,” and I…
There’s been significant money flow shifts in the current environment, both between asset classes (from commodites into the stock market) and also in individual sectors of the broader stock market (from energy to technology and healthcare and others). Let’s focus briefly on the price action in the Healthcare Sector (XLV) to see how rapidly price…
Mortgage backers Freddie Mac (FRE) and Fannie Mae (FNM) made new lows today, after erasing all gains made from the July ‘Savior Rally” that was widely expected to be the absolute bottom for these stocks. Let’s look at where we are price-wise and how far these stocks have fallen recently. First, their daily charts: Fannie…
We tend to overcomplicate trading at times, myself included, but sometimes it’s refreshing to step back and recall the simplest, most basic (almost oversimplified) concept of broader trends and possibilities. Adam Hewison of Market Club released a new video today entitled “Three for One,” in which he takes trading and investing back to the foundational…
According to a few price calculations and support levels, odds have now shifted to favor a current possible short-term bottom for crude oil prices and a reversal to test higher levels – a technical development that comes at a time that gold has supported at similar levels and the S&P 500 is breaking down out…
With the inflation numbers (double what was expected) and weak housing data, the market took the opportunity to gap downwards through the prevailing rising support trend channel on the daily chart (evident on the Dow and S&P 500). We’ll need a close beneath the trendline to validate it, but as of noon, it looks like…