Archive | September, 2009

Earnings, Earnings, Earnings

29 Sep

Keep an eye out for earnings announcements in the stocks you are trading for the next few weeks. Click here for more info on earnings announcements.

Wk38: Market Recap

28 Sep

We remain bullish on the weekly chart of the top line figures. The head and shoulders pattern formed between November of 08 and July of 09 had roughly a 250 point range on the S&P therefore the target is $1200 on the S&P to be completed within approximately 8 months after July 09. We have seen lower volume on this rally a sign that buyers are still hesitant.

Wk39: Market Forecast

28 Sep

In the week ahead look for these news announcements to act as potential market movers
· Tues: S&P Case-Shiller HPI 9:30 AM ET
· Tues: Consumer Confidence 10:00 AM ET
· Weds: ADP Employment Report 8:15 AM ET
· Weds: GDP 8:30 AM ET
· Weds: EIA Petroleum Status Report 10:30 AM ET
· Thurs: Performance Income and Outlays 8:30 AM ET
· Thurs: Jobless Claims 8:30 AM ET
· Thurs: ISM Manufacturing Index 10:00 AM ET
· Thurs: Pending Home Sales Index 10:00 AM ET
· Thurs: EIA Natural Gas Report 10:30 AM ET
· Fri: Employment Situation 8:30 AM ET

Another week packed with economic data including GDP Wednesday, ISM Manufacturing Thursday and Employment Situation Friday.

Even though we’ve pulled back on the daily chart, we cannot be sure if it is the end of the bull run. We remain in a downtrend on the monthly chart; however watch for a moving down into the S&P support level of 1020-1040.

Wk39: Stocks to Watch

28 Sep

This week we are going to look for stocks that are in up trends, close or at their 52-week and all time highs, as well as trading above their 20 period exponential moving average. We use an exponential versus simple moving average because it places more weight on the most current trading day. We also want to make sure the 20-EMA is in an uptrend and above the 50 period moving average. Wait for a close above the high of the low day for entry on longs.

A Healthy Pullback?

25 Sep

On a line chart, the pullback we’ve seen appears to be quite healthy. We remain in the trend of higher highs and higher lows, with the Ascending Triangle pattern prevailing. Notice how every time we touch the trend line we move higher off of it.
When a market moves sideways or pulls back slightly look to volume to determine if it is a temporary breather, or a change of trend. If volume decreases after a move higher is it expected that prices will continue in the direction of the trend. If volume remains high during a period of sideways action it is an indication that sellers are becoming stronger and could signal a turn in trend.

Wk38: Market Forecast

21 Sep

A short bit this week, FOMC Meeting Announcement Weds at 2:15PM EST all news announcements can be found here. Since Friday put in an inside day, watch for a break of S&P500 1075 or 1060 to confirm additional bullishness or a pullback.
We may be in an uptrend on a short-term daily chart, but we remain in the context of a downtrend on the weekly chart of the top line figures. We are at an inflection point in the market, watch how it reacts to news and speeches. Trade with caution this week.
Watch for further updates throughout the week.

Traders Expo: Las Vegas!

17 Sep

Visit Las Vegas this November 18-21, 2009 where Tim Racette will be a guest speaker, teaching traders how to create a solid trading strategy. Click here for more info.

Wk36: Market Recap

13 Sep

The market refuses to go lower in week 36. With repeated attempts by the bears to push the market lower off the open, the lower prices were quickly rejected by the market. Friday was quite lackluster, perhaps due to the fact that it was 9-11. Friday’s breadth, highlighted in orange represents a market at parity.
Gauging off the weekly chart, we should see a continued rally in the markets as we are breaking above the hammer formed in week 35. However, the S&P500 is approaching the top of its channel, and with slowing action late in the week a pullback could be in store in the coming weeks back to the prior breakout point of $1030 or the psychological $1000 level. Notice the divergence between price and volume on the weekly chart as well.