Chris Perruna posted a brief article with a few major points and well-annotated charts in his article “A Natural Correction or a Top?“. Perruna notes, “Corrections are due when markets move up by 30% over their levels from the prior year.” He also annotates charts on Crude Oil, the Nasdaq, and the Dow Jones. I…
Attached are swing charts with the 3/10 MACD momentum oscillator. The most recent daily bar on each index turned red following the decline, meaning we have extended 2.5 Average True Range readings from the market peak (near Dow 13,700 and S&P 1,540). I know I write a lot that “Momentum Proceeds Price” in the form…
Normally, I like to post charts of the general indexes and do minimal annotations and speak from the perspective of my own swing charts and momentum readings, but I wanted to showcase a few excellent brief commentaries on today’s action. TraderMike writes a very concise yet informative post with an excerpt from the Worden Report…
If this scenario has not happened to you, you haven’t been trading enough: You’re excited. You see your set-up or read a great news report on a company and can’t wait to execute the trade. You do, buying a bit larger position than you’re used to, but this is the ‘sure fire’ trade they say…
Although there are various websites and programs used to find strong and weak industries and sectors in the market, I use Prophet.net and compare results with Investortools. I do deep analytical scans the first weekend of the month and then cursory updates as needed (or desired) on the weekends if I’m not satisfied with potential…
For those who study sector rotation as a method for understanding the broader market, there are ominous signs on the horizon for the broad market if the model is correct. In a summary, sector rotation theorists believe the market functions in an orderly progression where certain sectors outperform at certain phases in the business cycle,…
Here are a few charts and stock watchlist ideas from Prophet.net’s Industry Group screener: Strongest Industries of last 3 months: Weakest Industries of last 3 months: Industries showing strong buying money flow of last 3 months (best trade ideas come from here): Remember to read the charts from right to left in terms of monthly…
Here are basic weekly charts of the major indexes at a glance: With the exception of the Nasdaq, the Dow and S&P 500 are making new momentum highs confirmed by new price highs – a good picture. The technology focused Nasdaq is forming a weekly momentum divergence with price, in terms of swing highs –…
Craig at Swing Trade Stocks provided an excellent summary of how to set-up blog feeds (via Bloglines or his favorite, NetVibes) and view headlines and updated content of your favorite blogs (which should have an ‘easy to subscribe’ feed button). Doing so will keep you more up-to-date faster, and as we all know, speed and…
I wanted to point out the recent action in the Dow Jones Utilities Index – it is a lesson on how momentum divergences play out. First, the chart: I have not annotated this chart (with trendlines) to show the divergences – note both oscillators making lower swing highs while price makes increasingly higher highs. Divergences…