Category: Technical Analysis
The analysis published under this category are as follows.Tuesday, June 28, 2022
Technical Analysis: Why You Should Expect a Popularity Surge / InvestorEducation / Technical Analysis
Here's when a "rebirth of interest" in cycles and waves occurs
You probably know that the term "technical analysis" refers to analyzing the behavior of financial markets themselves -- such as the stock market -- as opposed to "fundamental" analysis, which is based on news and events outside of financial markets.
Well, in recent years, technical analysis has been out of favor.
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Sunday, June 19, 2022
Useful Things You Need To Know About Tweezer Top Candlestick Pattern / InvestorEducation / Technical Analysis
The tweezer top candlestick pattern was popularized by Steve Nison in the West through his book ‘Japanese Candlestick Charting Techniques’. Tweezers have varied in appearance, but there are certain traits that they have in common. Their appearance at market-turning points makes it possible to use them for analysis purposes. At times, they specify the likelihood of a reversal. When the price direction of an asset changes, it is known as a reversal.
These candlestick charts have been used by the Japanese to trade commodities since the 17th century. They monitor the prices of commodities in an aesthetically pleasing manner.
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Friday, March 04, 2022
The Put / Call Ratio – A Technique Used To Gauge Stock Market Extremes / InvestorEducation / Technical Analysis
Perhaps you’ve heard of the “Put / Call Ratio” (PCR) and been unsure of exactly what it is or when and how to use it.
First, a quick review of what Calls and Puts are. Calls are option contracts that increase in value from a RISE in the price of the underlying stock or index. Puts are option contracts that increase in value from a DROP in the price of the underlying stock or index.
Let’s jump in and see what’s “under the hood” and how we might use that to better inform our decision-making as traders and investors.
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Saturday, February 29, 2020
How Moving Averages Help You to Define Stock Market Trend / InvestorEducation / Technical Analysis
One way to think of a moving average is that it’s an automated trend line.
The "moving average" is a technical indicator of market strength which has stood the test of time.
More than 30 years ago, Elliott Wave International President Robert Prechter described this indicator in his essay, "What a Trader Really Needs to be Successful." What he said then remains true today:
... a simple 10-day moving average of the daily advance-decline net, probably the first indicator a stock market technician learns, can be used as a trading tool, if objectively defined rules are created for its use.
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Tuesday, August 14, 2018
Moving Averages Help You Define Market Trend – Here’s How / InvestorEducation / Technical Analysis
This simple moving average "works equally well in commodities, currencies, and stocksquot;
The "moving average" is a technical indicator of market strength which has stood the test of time.
Over 30 years ago, Robert Prechter described this indicator in his essay, "What a Trader Really Needs to be Successful." What he said then remains true today:
...a simple 10-day moving average of the daily advance-decline net, probably the first indicator a stock market technician learns, can be used as a trading tool, if objectively defined rules are created for its use.
So, what is a moving average?
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Friday, June 01, 2018
What is More Reliable than the Andrews Pitchfork? / InvestorEducation / Technical Analysis
When my friend Professor Alan Hall Andrews was most active as a trader and writer it was prior to 1980. After examining his writings and use (in the 1970’s) of the various lines related to the median lines verses the action reaction lines, it is easy to come to the conclusion that he favored the Action Reaction lines over what is commonly referred to as the Andrews Pitchfork. To answer this question for myself I examined various concepts that Andrews taught in his writings, shortly prior to his passing on found that most of them were median line related. This was when he came up with the modified Schiff line which is actually a derivative of a trend line. Trend lines are lines he advocated using along with the Action Reaction Lines in the 1960’s and 1970’s.
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Sunday, April 29, 2018
Why Stock Market Death Crosses Aren’t Bearish / InvestorEducation / Technical Analysis
Here at Bull Markets I try to dispel conventional trading “wisdom” that’s widely accepted but is false. The media’s repetition of these statements misleads traders and investors.
I’ve recently heard some chatter about the “death cross” because the stock market has been falling a little. For those who aren’t aware, the “death cross” occurs when the 50 daily moving average falls below the 200 daily moving average. This is seen by mainstream financial media is a BIG bearish signal.
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Wednesday, April 04, 2018
Improving Moving Average Systems with Andrews Pitchfork / Stock-Markets / Technical Analysis
By Ron Jaenisch:
In Traders world publication last year, “A Winning System” was included, by this author. The system was a 50/100 week moving average crossover system. A track record was shown that documented the systems 100% record of winning trades for the last eighty years.
Since I learned Andrews and Babson techniques, from Dr. Alan Hall Andrews at his kitchen table and use them in my own trading, I decided to experiment with the idea of combining the Pitchfork with the crossover moving average system. This article will show some of the results of this experiment.
Tuesday, January 09, 2018
How a Simple Line Can Improve Your Trading Success / InvestorEducation / Technical Analysis
Elliott Wave International's Jeffrey Kennedy explains many ways to use this basic chart tool
The following trading lesson has been adapted from Jeffrey Kennedy's eBook, "Trading the Line -- 5 Ways You Can Use Trendlines to Improve Your Trading Decisions."
"How to draw a trendline" is one of the first things traders and investors learn when they study technical analysis. Typically, they quickly move on to more advanced topics and too often discard this simplest of all technical tools.
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Friday, December 22, 2017
Another Technical Tool in the Markets Chart Analysis Toolbox! / InvestorEducation / Technical Analysis
Charts are fascinating! They reflect human action. We look at charts for direction, for support and resistance. Here is a chart (courtesy Stockcharts.com) that is just now in the process of showing a buy signal for gold mining stocks.
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Tuesday, October 13, 2015
Top 3 Technical Tools Part 3: MACD - Video Lesson / InvestorEducation / Technical Analysis
Enhance your trading confidence with this short lesson on how to combine Moving Average Convergence Divergence with other technical tools.
Read full article... Read full article..."Guessing or going by gut instinct won't work over the long run. If you don't have a defined trading methodology, then you don't have a way to know what constitutes a buy or sell signal. Moreover, you can't even consistently correctly identify the trend." -Jeffrey Kennedy
Friday, September 11, 2015
Stock Market Forecasts: Why You Should Consider Technical Analysis / InvestorEducation / Technical Analysis
Technical versus fundamental analysis? The winner is...
Technical versus fundamental analysis: Which approach yields better investment results?
A new study by three finance professors offers an answer.
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Monday, June 09, 2014
Demystifying WD Gann’s Square-of- 9 / InvestorEducation / Technical Analysis
Pauline Novak-Reich writes: 1. The Square-of-9 is a spiral of consecutive numbers unfolding counterclockwise, in the direction of the Milky Way, hurricanes, whirlpools and all other known spirals in nature. When pulled from the number 1 at the centre, the Square transforms into a voluminous pyramid. The Square-of- 9 served as blueprint for the construction of the Great Pyramid.
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Wednesday, May 14, 2014
This 13th Century Mathematics Tool Can Make You Serious Money Today / InvestorEducation / Technical Analysis
Keith Fitz-Gerald writes: Every once in a while I like to circle back to some of the great questions I get from you.
Today, I want to dive into one from Suzanne P., who wants to know if "Fibos" can help her make money in the markets.
In a word, yes. But, you've got to understand what "Fibo" analysis is and how it works to make it profitable....
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Thursday, February 20, 2014
How to Detect Stock Market Tops / InvestorEducation / Technical Analysis
Chris Rowe wites: As I noted last week, bull market tops are often characterized by a breakdown of the sector that had led the market higher (like tech stocks in 2000 or financial stocks in 2007).
Another clue in our hunt for the top is the concentration of leadership to individual sectors. When we get near major (or even intermediate) bull market tops, we tend to see one sector (or sometimes two related sectors) breaking clearly away from the others.
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Thursday, November 14, 2013
How to Trade in Currency Markets with Harmonic Chart Patterns / InvestorEducation / Technical Analysis
Brett Chatz writes: One of the biggest challenges facing traders in the currency market is that of identifying future patterns or trends which may develop. Fortunately, some pretty useful methods have been developed using technical analysis and fundamental analysis. No method is fool proof and no method provides 100% certainty as to future market movements. However in the trading arena, it’s probabilities that investors are looking for. The higher the probability that an event is likely to occur the better.
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Thursday, October 24, 2013
Learn to Spot a Head & Shoulders Trading Patterns in Your Charts (Video) / InvestorEducation / Technical Analysis
A Trading Lesson from Elliott Wave International's Jeffrey Kennedy
Senior Analyst Jeffrey Kennedy is the editor of our Elliott Wave Junctures trader education service and one of our most popular instructors. Jeffrey's primary analytical method is the Elliott Wave Principle, but he also uses several other technical tools to supplement his analysis.
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Wednesday, May 01, 2013
How to Use MACD With Other Technical Trading Tools - Video / InvestorEducation / Technical Analysis
"Guessing or going by gut instinct won't work over the long run. If you don't have a defined trading methodology, then you don't have a way to know what constitutes a buy or sell signal. Moreover, you can't even consistently correctly identify the trend." -Jeffrey Kennedy
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Thursday, March 07, 2013
Bollinger Band Technical Trading Basics - Video / InvestorEducation / Technical Analysis
As a technical trader, are you able to view financial market fluctuations clearly and reliably?
At Elliott Wave International, we hold that the Elliott Wave Principle is the most effective tool for analysis. Yet the Wave Principle works well with other technical tools. If you are ready to trade with Elliott, our educational subscription editor Jeffrey Kennedy can teach you how to integrate ancillary technical indicators -- such as Bollinger bands -- to build high-confidence setups in the markets you trade.
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Friday, August 17, 2012
Could Price Bar Charts Help You Forecast the Markets? / InvestorEducation / Technical Analysis
Senior Analyst Jeffrey Kennedy has spent over 15 years developing techniques to "read between the lines" on a price chart, and he shares some of his techniques with you in a FREE eBook: Learn to Identify High Confidence Trading Opportunities Using Price Bars and Chart Patterns.
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Thursday, May 10, 2012
How to Predict the Future / InvestorEducation / Technical Analysis
How Roger Babson’s applications of Newtonian Physics are applied to the stock market.
Roger Babson was at the New York stock exchange on March 14, 1907, at the request of a friend. The market had started a drop from a high of 111 on March 6, 1907 on the way to a low point of 60. Much of the drop occurred on March 14. “On that day I actually saw men’s hair turn gray.” Roger wrote in his autobiography.
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Monday, May 07, 2012
Combining the Andrews Lines with the W.D. Gann Head and Shoulders Pattern / InvestorEducation / Technical Analysis
Ron Jaenisch writes: Both WD Gann and Alan Andrews used geometry and pattern recognition. Numerous articles and books have been written about both. Even though some of the techniques of Andrews and Gann are well known, there has been little discussion in combining the techniques. The advantages are significant. Gann techniques have a high probability and Andrews gives one the ability to enter the market with lower risk and significantly better risk reward ratios.Read full article... Read full article...
Monday, May 07, 2012
Is the World coming to an End? Stock Market MAP Waves Theory Explained, Part 3 / InvestorEducation / Technical Analysis
In MAP Waves Part 1 I presented my methodology. In MAP Waves Part 2 I presented probabilities as a simple foundation for a very basic explanation of wave theory so that you can start to visualize what is happening in the stock market and to better understand trading patterns in the context of MAP waves.
Basic Wave theory
Being a strong believer if the KISS principle - grossly simplified for explanation purposes that everyone should be able to relate to;
A wave is a transfer of energy in multiple dimensions - we only need 2 - amplitude and frequency. Amplitude we see as price action and frequency as time - but the beauty of this explanation is that any one of use can see it on a stock chart!
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Thursday, April 26, 2012
Stock Market MAP Waves Part 1 - An Alternative to Elliot Waves / InvestorEducation / Technical Analysis
I had real problems with the complexity of Elliot Wave (EW) corrections, where there are never ending corrections, with some EW analysts having multi decade corrections, where higher tops are valid under EW theory. This presents serious investment difficulties, because you never know where you are in any wave. Here I will present MAP waves, my modified wave counting based on analysis with examples and statistics so that probabilities can be established for risk management on a weekly and daily pivot scale. I only look at indices, because individual stocks can be too easily manipulated, including by governments as is done in the US.
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Sunday, January 15, 2012
The Best Ever Stock Market Indicator / InvestorEducation / Technical Analysis
Courtesy of Doug Short. The $OEXA200R (the percentage of S&P 100 stocks above their 200 DMA) is a technical indicator available on StockCharts.com that can be used to forecast conservative entry and exit points for the stock market.
See Is This the Best Stock Market Indicator Ever? for a discussion of this technical tool.
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Monday, December 05, 2011
Single- and Multi-Bar Price Analysis: Could It Help You Forecast the Markets? / InvestorEducation / Technical Analysis
Senior Analyst Jeffrey Kennedy has spent over 15 years developing techniques to "read between the lines" on a price chart, and he shares some of his techniques with you in a new FREE eBook: Learn to Identify High Probability Trading Opportunities Using Price Bars and Chart Patterns.
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Monday, September 12, 2011
Momentum Trading Technical Analysis Using MACD / InvestorEducation / Technical Analysis
Learn more about using Momentum analysis to make Elliott wave trading decisions in this video by EWI European Interest Rate Analyst Bill Fox. Find more lessons on technical indicators in EWI's newest free report. See the information below.
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Monday, August 22, 2011
Dollar and Crude Oil Bearish Triangles Setting Up / Stock-Markets / Technical Analysis
"Triangle, triangle on the wall, what are thee telling us about market direction overall?" Neither the lack of European financial integration nor the imminent fall of Gadhafi have jogged the Euro and Brent crude oil futures out of their recent sideways ranges. Perhaps we should view the post August 8 pattern in the e-mini S&P 500 as a triangle pattern too? And, if so, what will that mean?
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Tuesday, February 01, 2011
How a Straight Line on a Chart Helps You Identify the Trend / InvestorEducation / Technical Analysis
Technical analysis of financial markets does not have to be complicated. Here are EWI, our main focus is on Elliott wave patterns in market charts, but we also employ other tools -- like trendlines.
A trendline is a line on a chart that connects two points. Simple? Yes. Effective? You be the judge -- once you read the free 14-page Club EWI report by EWI's Chief Commodity Analyst and Senior Tutorial Instructor Jeffrey Kennedy.
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Tuesday, October 05, 2010
Learn to Trade Using High Probability Technical Chart Patterns / InvestorEducation / Technical Analysis
There's a little known joke among the trading community that goes like this: "A trader walks into a bar... pattern: 'Ouch!' "
Fact is, if you don't know what you're doing, price bar analysis can be a bit "painful." Finding a discernable pattern in their grouping can feel like finding a hair in a hay stack.
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Wednesday, September 08, 2010
Download The Ultimate Technical Analysis Handbook / InvestorEducation / Technical Analysis
Dear Reader,
Today more and more investors are warming to the fact that psychology moves markets and therefore fundamental analysis, which fails to properly measure mass investor psychology, must be flawed.
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Sunday, July 04, 2010
The Ultimate Technical Analysis Handbook - Free Download / InvestorEducation / Technical Analysis
Get Your Free 50-Page Download: The Ultimate Technical Analysis Handbook
Dear reader,
Today more and more investors are warming to the fact that psychology moves markets and therefore fundamental analysis, which fails to properly measure mass investor psychology, must be flawed.
Saturday, June 26, 2010
The Ultimate Technical Analysis Handbook / InvestorEducation / Technical Analysis
Get Your Free 50-Page Download: The Ultimate Technical Analysis Handbook
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Saturday, January 23, 2010
Time the Market Using These Market Strength and Volatility Indicators / InvestorEducation / Technical Analysis
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Tuesday, December 15, 2009
The Not So Orthodox Broadening Stock Market Top / Stock-Markets / Technical Analysis
A few of you have been asking me whether I am still following the broadening top formation. The answer is, Yes, Yes, Yes and Yes.
Being a fractal with self-similarity, the broadening top has replicated itself at several degrees of trend, much like the fern leaf to the left. This is giving it the power to extend beyond its expected boundary by repeating a self-similar pattern over and over again.
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Saturday, November 28, 2009
Find Trading Opportunities With Fibonacci / InvestorEducation / Technical Analysis
Elliott Wave International has just released a free 42-Page eBook, How You Can Identify Turning Points Using Fibonacci. Created from the $129 two-volume set of the same name, it’s available free until November 30, 2009. Learn more.
You may be missing trading opportunities staring you in the face. The charts you look at every day could reveal high-confidence trade setups and market turning points. You can learn how, today.
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Monday, November 23, 2009
Free 42-Page eBook: Find Trading Opportunities With Fibonacci / InvestorEducation / Technical Analysis
Elliott Wave International has just released a free 42-Page eBook, How You Can Identify Turning Points Using Fibonacci. Created from the $129 two-volume set of the same name, it’s available free until November 30, 2009. Learn more.
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Wednesday, November 18, 2009
Stock Market Negative RSI Divergence Problem / Stock-Markets / Technical Analysis
What is a Negative RSI Divergence and why should you care?
A Negative RSI Divergence is a condition where the underlying stock or index is moving higher, while the Relative Strength is moving lower.
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Thursday, November 12, 2009
Stock Market Forming a Major Top? / Stock-Markets / Technical Analysis
Every time a major stock index approaches a new high, invariably we can find calls that "a major top has already been made". We have seen several such articles in recent weeks. While these incessant calls for a major top may be 100% accurate at the present time, a review of historical major tops gives little support for such a claim. A short-term top within a major bull market can occur at anytime, but major tops do not occur very often.
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Wednesday, September 23, 2009
The Ultimate Technical Analysis 50 Page Handbook, Download Now / InvestorEducation / Technical Analysis
Today more and more investors are warming to the fact that psychology moves markets and therefore fundamental analysis, which fails to properly measure mass investor psychology, must be flawed.
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Friday, September 18, 2009
Stock Market Doji Reversal Pattern / Stock-Markets / Technical Analysis
Normally when you get a doji after a trend has been in place, you see a reversal of that trend for a few days. A doji meaning you open and close at basically the same level which indicates that the bears in this case have caught up to the bulls short term. The question now becomes, will it matter? It has worked at times in this bull run and hasn't worked at times, although doji's off a strong trend in place usually do work. Add in how overbought we are on those daily charts and you have a decent chance of seeing at least some type of selling over the next couple of days.
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Friday, August 21, 2009
Seventeen Japanese Candlestick Technical Trading Chart Formations / InvestorEducation / Technical Analysis
Today's video is something quite special.
In many of my previous videos we've looked at charts using Japanese candlestick charts. While this is interesting, I've never quite explained to you some of the powers behind using Japanese candlestick charts.
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Tuesday, July 07, 2009
Stock Market Price Charts Can be Confusing ... Can't They? / Stock-Markets / Technical Analysis
Take the Relative Strength for example. It moves from zero to 100. The half way point has to be ascertained visually, because 50 is a critical level. So, you have to watch for 51 or 49 to know when you are above or below that critical mark.
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Tuesday, May 12, 2009
JPM “Tentative” On Balance Volume Sell Signal / Companies / Technical Analysis
In terms of Joseph Granville’s original argument, an On-Balance-Volume sell signal needs to manifest as a saw-tooth pattern, i.e. There needs to be a lower low following on from falling highs. This has not yet happened. (See second chart)Read full article... Read full article...
Sunday, May 03, 2009
Inter-Market Analysis Between Stocks and Bonds for Trend Changes / InvestorEducation / Technical Analysis
In a post yesterday, we showed how long-term movements of yield spreads between US high quality and low quality debt tends to move coincident with, and in the same direction as, US stocks over multi-year periods. The pattern worked well for the last three stock trend changes in 2000, 2003 and 2007.
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Tuesday, April 14, 2009
Charts That Talk Can Help Improve Your Trading / InvestorEducation / Technical Analysis
If you’re short on time, but still need to know exactly what the chart is saying, I recommend you watch the video below on a new Talking Chart system:
Friday, March 06, 2009
Jim Cramer's Latest Rant, Technical Analysis is Voodoo Mumbo Jumbo / Stock-Markets / Technical Analysis
Jim Cramer is at it again -speaking before thinking and pontificating on a subject he knows very little about. Before we get to another Jim Cramer "moment" let me state that I have no personal axe to grind with him, and in fact, as a former contributor to TheStreet.com , I am indebted to Jim Cramer for giving me a start and some credibility in the financial publishing business. I don't know the man, and I doubt he is even aware of my existence. I think he is genuine about helping investors, but I guess his downfall is that he must be a entertainer first and an analyst second. It is a tough job.Read full article... Read full article...
Saturday, February 21, 2009
Stock and Commodity Market Rising Wedge Formation Price Pattern / Stock-Markets / Technical Analysis
Stranger than fiction? - You will not read the analysis below anywhere else. It flows from a unique discovery I made before the Nasdaq bubble finally collapsed
I discovered an interesting variation of a rising wedge formation – which the text books tell us is impossible, but it happened anyway and it cost me a lot of money because I was short the market when the wedge broke up and prices continued to rise.
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Sunday, June 08, 2008
Dow Support and Resistance Lines / Stock-Markets / Technical Analysis
Welcome to the Weekly Report. This week we look at some charts, re-introduce you to a way of calling market tops and have a look at what the Russians are saying.Read full article... Read full article...
Monday, May 05, 2008
Stock Market Pattern Recognition / Stock-Markets / Technical Analysis
In today's increasingly mature market environment, basing one's investment decisions on the recognition of commonly followed patterns, like a ‘head and shoulders pattern', has proven to be an expensive mistake all too many times for traders throughout the past 10-years or so. This is because when a large enough body of investors / speculators get to know something, and then act on it, what may have once proven to be a reliable ‘sell signal' becomes the opposite due to betting practices of market participants in what has morphed into more of a casino than a market. With respect to the stock market today, it's fair to say this is exactly what condition our condition is in., fuelled by runaway money supply growth also characteristic of high degree market tops that can take many years to fully mature.Read full article... Read full article...
Friday, November 16, 2007
Federal Express (FDX) Tip of a Iceberg? / Companies / Technical Analysis
News that Federal Express (FDX) lowers guidance and is coming clean about its rising imput costs (apparently, tis the season to come clean in lots of businesses) could be the tip of the iceberg that is providing clues to us about expectations ahead of the forthcoming holiday season... In any case, have a look at the BIG picture view of FDX, which is in a powerful correction that has a way to travel on the downside prior to completion... and which likely is reflection of a softer than expected US economy now and going forward...Read full article... Read full article...
Monday, November 05, 2007
The "Child's Guide to Technical Analysis" Looks at Silver... / InvestorEducation / Technical Analysis
If you have ever wanted your child to study Technical Analysis so that they can become a millionaire like you, instead of maybe ending up living off you for half their lives and bringing their washing home etc, but have not summoned up the courage to attempt to introduce the subject to them, because of fears of their eyes glazing over when confronted with lots of squiggly lines and a barrage of esoteric indicators, now is your chance because even a 7-year old can grasp what we are going to look at in this article today.Read full article... Read full article...
Wednesday, October 24, 2007
Conditional Formatting and its Application to Technical Analysis (AMEX Gold BUGS Index as an Example) / InvestorEducation / Technical Analysis
Carl Swenlin stated “Technical analysis is a wind sock, not a crystal ball”. This is probably one of the most eloquent and precise definitions I have ever seen because it goes deeper than the sentence itself. Provided the wind is blowing from the north, the windsock will indicate that until the wind changes direction. When the wind direction changes, individuals can note this and be confident that the wind hitting their house is coming from a direction specified by the windsock.Read full article... Read full article...
Sunday, July 22, 2007
Market Update - Trading The Charts / Stock-Markets / Technical Analysis
It's no secret that I've been getting closer and closer to calling a major top while maintaining the unbiased flexibility to trade both sides of the market as we approach our final destination. We've been perfectly cautious of overextended rallies, while also avoiding panic on the dips and buying bottoms. IF I could have my way from here, I would want to see this market attempt one more screaming rally to just above its recent highs and, at that point, if all things remained the same, I'd be willing to call for a substantial turn, not only in the stock indices, but in several other major markets.Read full article... Read full article...
Monday, July 09, 2007
The Summer Pause That Refreshes the Stock Market / Stock-Markets / Technical Analysis
There is a Wall Street phrase that “Sell in May and go Away” that means that most of the money tends to be made between November and May. There are actual studies that have shown if one were fully invested in the market from November to May and then moved their money into safe interest bearing instruments like CDs, they make more money than staying invested in the market throughout the year. Now that we are entering the heart of summer, we need to consider if 2007 will follow a similar pattern.Read full article... Read full article...
Tuesday, April 24, 2007
Gold, Palladium, and Sugar Commodity Markets Outlook / Commodities / Technical Analysis
Several weeks ago I wrote about how the US dollar was on the verge of a breakdown and that gold was on a verge of a break out. Sure enough, the dollar has hit multi-year lows against a wide array of currencies and gold, while overbought in the short-term, seems to be well on its way to multi-year highs.
One of the interesting aspects of this recent move up in the gold market is that gold prices have had a relatively orderly move up to new highs. After the knee-jerk sell-off in gold (where gold mindlessly tracked the equities market) gold has moved higher by trading in ranges…and breaking those ranges…and moving swiftly higher due to buy stops being triggered. Another way of looking at this is that gold prices have moved higher in a “stairway” type approach. Take a look, for example, at the gold chart.
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Tuesday, April 03, 2007
Commitment of Traders Reports Analysis - Net Commercials and the US Dollar Setup / Commodities / Technical Analysis
Volatility Index
VIX [ http://www.buythebottom.com/vix.html ]
Commercials are recent buyers of the VIX. Thus far, the setup looks more neutral than anything else. A classical COT setup to the long side would result if net-commercial position rose near or above 4,000 contracts.
Last week I mentioned that the VIX looked overextended to the downside and would probably retest its 10-day moving average (MA). Over the next several days, the VIX did indeed rally and is now trading above its 10-day MA in the 14 to 16 dollar range. With the bullish setup in the stock market right now, I would expect the VIX to decline over the next little while, and ultimately end up under $12. However, if we see the VIX rallying and closing above $16, that would tell me that volatility decided to stick around. Speaking of which, a move above $16 for the VIX would probably also translate into further weakness in the stock market.
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Sunday, March 25, 2007
Learning to Trade - The Grand Strategy / InvestorEducation / Technical Analysis
As follow up to our previous article, Learn to Trade Like a Spartan Warrior , we thought it wise to dig a little deeper, and provide additional clarity relative to aligning ones' specific objectives with fitting strategies.
It is not difficult to draw the analogy of war into the financial sphere. Long wars comprise a series of minor and major battles. More often than not, one war leads to another.
One glance at a long-term price chart and one quickly realizes that the peaks, troughs, and the sharp jagged edges defining it, exemplify a “war without end.”
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Sunday, March 11, 2007
August 2006 Again ? Financial Markets Forecast into August 2007 / Stock-Markets / Technical Analysis
What is seen here is the quantum energy function of the SPX future. This is a proprietary function based on the principles of Quantum Physics.
We believe that Yen carry trade is not completely unraveled yet and it will produce retest of the recent lows, which would on April 7, neatly correspond to the lows on the chart. Then we will have then the rally back into early May, just like in 2006 and then down into August. Looks like the creator wants to repeat the play of the last year. So, be ready.
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