Today’s price action was in some ways similar to a trend day, but the price action wasn’t as clean as expected. Let’s look at some of the key trades we could have taken in today’s market price structure. 5-minute chart: DIA First, the market began with an overnight gap of less than 100 points in…
Today brings more selling into the marketplace, which represents a continuation of the interesting, clean arc price has recently formed. Let’s look at it. The Dow Jones has fared the poorest of the four major US Indexes: You can see the clear arc from early March until present that price has formed, as momentum has…
Agriculture darling stocks Potash (POT) and Monsanto (MON) surged to record highs today, on the shoulders of yet another surge in agriculture prices. Let’s look at these high-flyers. While not making a new momentum high, Potash (POT) indeed made a new price high shy of $240 a share, blasting past its prior swing high of…
Goldman Sachs (GS) reported earnings that beat expectations, yet the stock completed a classic “Gap Fade” as I suspected it might. Let’s take a snapshot of today’s action so far. The one-minute chart shows the gap-fade trade clearly, such that instead of BUYING when the earnings news was reported early this morning, your best trade…
Financial giant Goldman Sachs (GS) reports earnings tomorrow, and while they’re expected to report lower profits, investors see a silver lining in the earning reports, and have been bidding the stock higher. What could happen tomorrow? Let’s take a three-timeframe view of the stock before earnings, starting with the 15-minute chart, which reflects the ‘bid-up’…
Can you be profitable using the simple “Fade the Gap” strategy in Apple Inc (AAPL)? Let’s find out. To recap, a gap is defined as an overnight price move greater than $0.25, in which case the trade is to ‘fade’ the gap and trade against it and exit when price reaches yesterday’s close. The stats…
Gold has been featured prominently in public news stories, but the price has actually fallen almost 20% from its peak. Has the shining precious metal formed a top… or is it building a base from which to rally higher soon? Let’s take a couple of perspectives: On the daily chart, a down trend has been…
Is the US Dollar Index in the process of bottoming? Has it formed one already? What does this mean for the overall market and for commodities? Let’s look briefly at the charts. First, the ‘structure’ of the Daily US Dollar Index: Notice the price making lows at $71 but always failing to exceed those lows. …
Short-Term treasury yields have been rising lately, driving bond prices down and potentially confusing investors who escaped the stock market in the recent past to escape the downward volatility. It is time to switch? Many investors and financial adviser instructed their clients to buy bonds to ride out the upcoming market volatility, some doing so…
With one hour left until the close, Apple Inc (AAPL) is down 4.5% for the day and just over 7% for the week. Let’s look at the chart to see if we can get any clues to where the selling might stop. First, the intraday 5-minute chart to see what is going on with the…