An incredibly bearish omen is setting up currently in the monthly charts of the US Stock Market Indexes. Each index has now carved an intra-month breach of its rising 20 period (month) moving average, which has served as key support and key resistance many times prior. Until a close is registered beneath this average, meaning…
The US Stock Market has been whipsawing traders up and down over the last week, with the market moving 1% to 2% up and down per day. That translates into swings of 200 Dow Points up and down on back-to-back days. It seems like when traders get a signal to go long, the market reverses…
Goldman Sachs (GS) recently formed a consolidation coil or triangle, and recently set up a classic “throw-back” or second chance high probability entry. Notice the absolutely clear triangle consolidation from November until early January, and the subsequent break in mid-December. I posted previously about the triangle break as a potential opportunity to trade GS short…
The Sector Rotation Theory is again showing majorly bearish money flow patterns into the most defensive sectors possible. The Utilities, which offer attractive dividends and who also perform well in conditions of falling interest rates, have increased 15% in the last 65 days as the market has turned bearish. Utilities greatly outperforms all other of…
I love it when trades work out as close to perfect as possible. Apple Inc (AAPL) exhibited a classic 1,2,3 Gap Fade play this morning that allowed for major profits for aggressive traders: The 1,2,3 Gap Play is as follows: 1. First trade with a gap is to FADE the gap and play for yesterday’s…
A fellow blogger referred me to the Video Education and Classroom section at INO.com, which contains video and audio lessons complete with workbooks and PDF file lesson hand-outs for over 500 videos available to you On-Demand. I also recently joined the site, so I will possibly be reviewing some of the videos I watch and…
I wonder when this market will ever gets its head on straight again or regain its footing, whether up or down. Typically, trend day ups do not follow a trend day down. Often, following any sort of trend day, price consolidates or can even trend a second day in the same direction. Rarely do you…
I always love divergence patterns and their resolution in the market. A full-day divergence on the 5-minute chart from Friday is being resolved today, with the birth of a new intraday uptrend on the 5-minute chart. The market simply cannot make up its mind. Extended Divergences are patterns where you can almost feel the surrender…
The NASDAQ index sits exactly at a key price support zone, the break of which will increase the odds for significant downside, but should the index support at this level, can an “all clear” signal be given? I’m sure you’ve seen prettier charts, but the fact remains that the NASDAQ sits at a key level…
Friday was yet another major trend day down for the major US Indexes. Let’s look at some of the simplest trades you could have made within that intraday structure: The first clue that Friday would be a trend day (down) was the opening gap. Opening gaps do not always precede trend days, but the initial…