Market Update

Anticipation Doesn’t Pay

Does it pay to Jump the gun? In most cases, No. Though there are times it is profitable, it is not highly probable. Catching the few cents or points ahead of the breakout or breakdown is not worth the risk that it entails. When entering a trade around a specific candlestick or pattern formation, it is in your best interest to wait for the breakout above or below the pattern such as a hammer before entering the trade. In the…

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Another leg higher?

Today’s decline and rally happened on relatively big volume, signaling a continued move to the upside. The candlestick formation that was formed, called a hammer indicates that first the bears were able to push prices lower, but later in the day the bulls overpowered and brought prices back up near the open, this is a bullish sign. We’ve also had plenty of stocks making new 52-wk highs over the past week and only a few making 52-wk lows. We know…

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A Healthy Pullback?

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…

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Watch for a Bounce!

Watch for a bounce at the S&P 980 Level. Not only is this a strong support level, it is right at the uptrend line of the March and July lows. The rest of the week should continue to drift lower on lighter volume going into the 3-day holiday weekend.How the market reacts to the Jobless Claims number Thursday and Employment Situation Friday will be quite important. For those continuing to be bearish, don’t worry, we are halfway through the formation…

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The Top is Here!

Well, for the short term anyways… The two bearish candlestick patterns on the daily chart of the S&P and across the top line board look to be a telling sign that a pullback is in store, all we need is a catalyst. Look for a quick and vicious move back down to $1000. Of course, if the market likes Thursday’s GDP # and we do happen to move above $1038, we will be buying with both hands as bears’ stops…

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Is the Recession Over?

With all the negative headlines like “Job options narrow as recession bites” and “Biggest Recession Blunders” one would believe we are headed for another downturn in the markets. While the summer month’s lower volume trading can distort the longer term outlook, it is often said that by the time the media get’s long, it’s time to go short and vice-versa.

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The Fibo Bounce

Looking at an hourly chart of the S&P, we seem to be breaking a Fibonacci Levels, pulling back, then bouncing off to the next Fibo Level. Looking to the market internals intra-day can help confirm whether or not the pullback is buyable.

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