Recall from my previous post entitled A Little Edge is All You Need that the Vegas style casino games enjoy a very small edge to keep those millions flowing in each year. Let’s look a little more about how this relates to your own trading. Without delving too deeply, there are two simple ways to…
StockCharts.com has a wonderful tool for evaluating the relation between the interest rates (yields) and the stock market (S&P) in the Dynamic Yield Curve page. Using this tool, you can compare 3 month yields with 2 year, 5 year, 7 year, 10, 20, and 30 year treasury yields and see not only what effect the…
On the US “Super Tuesday” when almost half of the states held a primary election, the US Stock Market slid 3%, casting its vote against the major candidates. No seriously, the weak consumer services sector, which comprises a large percentage of the consumer spending category, took a major hit today, causing the markets to resume…
It’s a new month, and the market may be off to a new character change once again. There have been three trading days in February, and so far all three days have experienced an index gap, of which only one has filled so far. Let’s look: There are a few things to note in this…
Google (GOOG) dipped beneath $500 per share today for the first time since August, 2007. Google has been on an almost solid decline since early 2008, and price has depreciated 32% from its all-time high of just over $740 per share: Notice the “triangulation” action which took place from early November until the price breakout…
Traders frequently combine volume studies with price studies and indicators to gather a larger picture of where prices may be headed in the future. But in the futures market, traders can utilize signals from Open Interest in combination with price and volume for and enhanced picture. Open interest for any futures contract, be it index,…
Let’s take a rapid look at the major US Indexes as we start the new week: First, the NASDAQ Daily: Bullish Divergence preceded the recent 200 point rally (divergence is now complete) Price rests at the falling 20 period MA – bearish Price is in a confirmed downtrend Volume has accelerated majorly and has made…
Pulte Homes (PHM) was one of the major homebuilder stocks to suffer major losses during 2007, but 2008 has shown a dramatically different picture for this homebuilder stock. On the shorter daily time frame, notice the discreet momentum divergence that proceeded the major rally. Recall that at the birth of a new trend after a…
According to the Sector Rotation model, a bit of bullishness may be underlying the recent market moves. Let’s see: As of early January 2008, funds have been taking money out of Energy and Technology stocks (which were major winners of 2007) and are pouring it into the beaten down Financial and Consumer Discretionary Spending Sectors,…
The technology world is abuzz with headlines today! Yahoo Inc (YHOO) may be acquired by Microsoft (MSFT), which sent shares soaring, while Google Inc (GOOG) missed earnings expectations and plummeted. Before looking at the charts, let’s look at the headlines: From Yahoo Finance: Microsoft makes $44.6 Billion Bid for Yahoo Yahoo’s stock, like the up…