The Transportation Index plunged beneath key support, after making a large run-up in price that was quite impressive. Let’s look at $TRAN, railroad stock CSX, and the XAL Airline Index. Transportation Index: We see the powerful and strong uptrend that has developed throughout the year coming into doubt recently, thanks to a ‘three-swing’ or ‘three-push…
As I indicated earlier this morning, due to the double-doji pattern, odds favored price expansion today, with the bias being to the downside. How could you have turned that bias into profits and traded the trend day? Let’s take the S&P 500 as a proxy (you would use the SPY or the DIA … or…
Interestingly enough, the S&P 500 Index formed two doji candlesticks over the last two sessions, revealing a market experiencing indecision, which should give way to a larger trend move today or soon, so be expecting some sort of range expansion day. Beyond the two doji ‘indecision’ candles, we have a negative momentum divergence, and a…
What are the odds that the average cost of a gallon of gas at the pump will cost $5.00? While that’s hard to discern now, a solid 86% of Americans in a CNN poll released today said that possibility was at least somewhat likely. Here are some key quotes from the Washington Post article “Fuel…
I thought it would be benficial to share two perspectives on the recent news and stock market price action in Apple Inc (AAPL) and what it might mean for the future. First, Jim Goldman at CNBC Tech Check in his article “Apple: The Day After” writes the following: “Investors can be a quirky bunch, especially…
Apple Inc (AAPL) announced today that it will begin selling improved iPhones at reduced prices, which would seem like wonderful news for the stock, but the prices were wildly volatile, erratic, and closed 2% lower for the day. Why? Let’s take a look. According to the AP Article “Apple Unveils faster iPhone – Chops Price”…
I have been discussing trading strategy research I have conducted, which examines the relationship between your stop-loss chosen to the profit target chosen. In the past, I have discussed Win Rate and Net Profit – but let’s pause to view the 3 systems’ total trades taken based on the relationship. Please visit my earlier posts…
What have some of the other bloggers and writers said about the market activity and ramifications of Friday’s actions? Let’s find out! The Big Picture: More on May 2008 Employment “If you want to spin a story out of this, it could be that people are re-entering the labor force because they’re having a hard…
The headline from last week will be the sudden surge in crude oil prices, but let’s take a moment and view this development along with the implications for the US Dollar Index. Crude Oil Prices: This is an excellent example of why it’s best not to try to anticipate market tops or bottoms. It also…
Today’s 3% market plunge wrecked havoc on the otherwise bullish conditions of the broader US Indexes. Oil rose drastically, and other commodities benefited as the Dollar Index fell as well. The Russell 2000 and the NASDAQ are still above or testing their rising daily key moving averages, but the Dow is well beneath these key…