I thought the rising support pattern provided by the 20 period moving average was interesting and wanted to show the diagram. I’m showing the DIA (Dow Jones ETF) on the 15-minute chart with a 20 and 50 period exponential moving average. While I often trade off the 5-minute chart, I view the structure of the…
I use momentum divergences as a large part of my trading, and I thought I’d take you inside a momentum divergence so you could understand the concept better. First, let’s start with a definition. Price can be defined as the aggregate value of all participants in a market as they express their hopes, desires, fears,…
Barry Ritholtz at the Big Picture recently asked the question: “Are Markets a Leading or Lagging Indicator” which addressed the commonly held notion that markets lead economics (or financial conditions as they develop). Barry states, “There are so many varied inputs into equity markets — sentiment, trend, liquidity, momentum, valuation — anyone of which can…
In the previous post, I specifically mentioned the Technology sectors as being one of the worst performers year-to-date, and the Industrial sector as being one of the best. Let’s take a look at those in a little more detail to see if we can gather a few clues: The Technology Sector, supported by similar patterns…
Let’s take a quick look at what the sector analysis is saying. First, let’s look at year-to-day (76 days) returns for the nine major SPRD sectors according to StockCharts.com: The Materials (up 6.5%) and Energy (up 5.6%) sectors have outperformed all others, while the Health Care (down 10%) and Technology (down 10.5%). While the Sector…
Last week’s price action (particularly that of Friday) sent the major US Indexes to test key resistance, a break of which would change the calculus and give more strength to the bulls. 1,400 on the S&P 500 Index proves to be yet another powerful force that price is testing. Should price cleanly break this zone,…
Today’s price appreciation was nothing shy of stellar for the down-trodden bulls. Let’s take a look at some of the key points: Although price made more of a rounded top formation, the day clearly closed over 100 Dow points higher than yesterday’s close – almost all of which was a result of the day’s overnight…
Andrew Horowitz at the Disciplined Investor blogsite recently posted a Podcast Interview he conducted with Robert Reich, a current professor of public policy (UC Berkeley) who has served in three presidential administrations, including Secretary of Labor under President Bill Clinton. I’m a follower of politics and so I was captured by the headline and had…
Not to be outdone today, Caterpillar Inc (CAT) also clawed its way higher today via overnight gap thanks to better than expected earnings. Caterpillar is a Dow Jones Index component, and is a heavy machinery company that does business across the globe. Overseas sales have boosted this company’s profit margins, despite a slowing American economy…
Google Inc (GOOG) has accomplished the unthinkable via a massive overnight gap (no chance of that being filled today!) due to earnings, which has caused the stock to shatter resistance, confirm a higher low, make a higher high, and confirm the stock as likely emerging into a new uptrend. According to an Associated Press article…