With a new week upon us, let’s take a quick look at where the major US Indexes stand. Dow Jones: The Dow has violated its 200 day moving average, and volume has accelerated as price has fallen through June. Price also has formed a new momentum low on the chart – in real terms, this…
With the upcoming week being a shortened week, and many traders being on vacation, let’s look at a few links and blog posts to get us started as we prepare for the upcoming week. Big Picture: Why Does -20% = Bear Market? “Best as I can figure, the 20% number is a not-quite-a-random number —…
Technology stocks have been in the news lately, so let’s take a quick look at three very popular stocks showing similar patterns: Research in Motion (RIMM), Apple Inc (AAPL) and Google (GOOG): RIMM Daily: RIMM missed earnings slightly, which sent traders punishing the stock mercilessly, plunging it beneath its strong trendlines and key moving averages. …
Friday’s action almost turned out to be another trend day down, but a recovery into the close prevented this development. Let’s look at some of the idealized trades we could have taken during the day, to learn more about these patterns should they develop soon in the future. The DIA – 5-minute: The day began…
General Motors (GM) hit a 52-year low yesterday, and isn’t showing much signs of a technical or fundamental recovery. How did the stable blue-chip company go astray? Let’s peek at the chart: To be fair to GM, let’s compare it to Ford Motor Company (F) to see a very similar chart, though Ford is only…
After forming two seim-dojis in a row (indicating relative indecision), the market unveiled a pure trend day today, allowing quick and steady profits for those who were ready to trade it for all it was worth. How might you have traded today’s trend day? Let’s look. The odds were slightly higher that a trend day…
This looks bad for the bulls. The Dow Jones Index broke its 2008 closing low today, and has broken its 2008 lows made in January. The overall trend is down, and momentum appears to be accelerating. The roughly 14% rally off the March lows has now been confirmed as a “Bear Market Rally,” in which…
As evidenced by today’s intraday price action, you’d think the market either had schizophrenia or was potentially bi-polar. Once the decision to hold interest rates unchanged at 2%, the market swung sharply four times before settling down for the close. Was there any chance of profit in this volatilty? Let’s look. The NASDAQ QQQQ ETF:…
Today’s decision will be more about tone than action – about words than a policy decision. The Fed is expected to keep overnight rates locked at 2%, though some may begin to discuss the threat of inflation on the economy, and may be trying to “jawbone” or threaten action if inflation numbers continue to be…
The Dow Jones Industrial Average tested the March closing low today, with a large, sudden plunge to the test and a solid recovery (so far) off this level. The market is at a very critical juncture now. The ‘zoomed in’ daily chart: Price gapped lower this morning and then careened to test the March 2008…