In week 7 we saw more sideways action with candles lining up same sized bodies on the weekly chart of the S/P. Once again the mixed internals confirm this. Gold is moving once again so keep that on your radar in weeks to come.The VIX is still in its triangle formation on the dailies, holding in the 40s. Oil continues to decline, ranging in the mid to upper 30s. It’s the speeches given by political and corporate officials have had…
Week 6 was quite bullish. We put in a higher low on the major indices and the NASDAQ broke to a higher high. The S/P, Dow and Russell are close behind sitting right at the previous swing high. We saw a divergence on the NASDAQ internals on Wednesday, again not something you see too often. This is a sign that a tug of war still remains between the bulls and bears, even as we move higher. The Basic Material sector…
As many of us have learned the hard way, the markets will act on their own accord and many times it seems without reason. As we continue to see sideways action across the major indices, the short term 2-5 day swing trades have been the most profitable over the first month of 2009. We made an attempted rally last week which only made it to the 50% Fibonacci retracement level (using the highs from January 09). Looking at the markets…
2009 has had a rough start to say the least. With the S&P and DOW down 8% and the NASDAQ down 6%, the actions over the next few weeks by President Obama should be a major market mover. The Energy Sector (XLE) was the only S&P sector ETF to be up on the week, the other 7 being (XLB, XLF, XLI, XLK, XLP, XLU, XLV, and XLY). The volatility index (VIX) jumped 10 points on Tuesday, but formed another inverted…
Week three was full of emotion. The major indices broke down below their moving averages with the financial sector performing the worst. The market will often times move in the path of least resistance so these trend lines should now act as resistance points if a rally should occur. Monday’s bearish A/D Line and Breadth Ratio along with a 3 point rise in the Volatility Index (VIX) was the first sign that fear was resuming into the markets. Thursday’s bottom…