Category: Stock Index Trading
The analysis published under this category are as follows.Wednesday, September 30, 2009
Volatile Stock Market Session Ends Mixed / Stock-Markets / Stock Index Trading
The markets ended mixed but it was a wild ride, as volatile swings both ways whipped traders around.Read full article... Read full article...
Wednesday, September 30, 2009
Understanding How Stock Market Divergences Work / Stock-Markets / Stock Index Trading
Do You Understand How Divergences Work in the Market?
In my new short video, I share with you some divergences that are taking place in the S&P 500 right now.
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Wednesday, September 30, 2009
Stock Market Drifting in No Mans Land / Stock-Markets / Stock Index Trading
And that's just the way it is folks. Boring for sure. No fun. I get it. However, it is what it is. With 1045 being support and 1075/1080 being resistance, neither side was able to get anything done today. We're simply stuck, basically in the middle of the range, thus there's nothing more to do for the moment.
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Wednesday, September 30, 2009
Stock Market Down Session Keeps Potential Top in Place / Stock-Markets / Stock Index Trading
The indices had a downday on Tuesday, giving back some of yesterday's big gains. The day started out with a move to new snapback highs on the S&P 500. At that point, the Nasdaq 100 failed to take out the highs, creating a negative divergence. They sold off quite sharply after consumer sentiment information came out. Then the market bounced, rolled over, and made their session lows in late morning until lunch.
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Tuesday, September 29, 2009
What Are the Big Institutional Stock Market Investors Doing? / Stock-Markets / Stock Index Trading
I will be spending most of today flying back to North Carolina ... so I will make today's update short and sweet.
This morning, we will look at the recent and past Accumulation and Distribution actions by Institutional Investors.
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Tuesday, September 29, 2009
Stock Market Investors Anticipate "V" Shaped Recovery / Stock-Markets / Stock Index Trading
The third quarter is rapidly coming to a close with another double-digit gain in the equity markets. Investors are nearly giddy over the possibility of a “V” shaped economic recovery that they are falling over each other to buy stocks. Will the fourth quarter pull the curtain on the recovery? Will the Fed begin to signal an end to their very easy monetary policy? Will home prices ever go up again? So many questions and a mere page to cover it all!
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Tuesday, September 29, 2009
Bond Yields Yet to Confirm the New Stocks Bull Market / Stock-Markets / Stock Index Trading
Over the past two decades, the US yield curve has been a very reliable indicator to the major peaks and troughs in the stock market. The periods in which the curve is steepest correlates closely to the bottom of the bear market. The opposite develops at market tops. When the yield curve is flat, this occurs at the top in the bull market.
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Monday, September 28, 2009
Stock Market Pullback Would Be Healthy / Stock-Markets / Stock Index Trading
A pull back should be viewed as healthy within a strongly trending market. However, the "moon shot"rally that started in July, 2009 has been characterized by nary a pullback, so the current 2.2% drop in the S&P500 must be producing a little bit of angst amongst the bulls. Relative to the past 2 months, a 2.2% drop counts as deeply oversold. But really, very little has changed. The major indices are still within ascending channels. Investor sentiment remains extremely bullish. As I have been stating for several months now, there is an upward bias until the extremes in bullish sentiment are unwound.
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Sunday, September 27, 2009
Stock Market Major Downtrend Awaits Confirmation of Top / Stock-Markets / Stock Index Trading
Current Position of the Market
SPX: Long-term trend - Down! The very-long-term cycles have taken over and if they make their lows when expected, the bear market which started in October 2007 should continue until 2014. This would imply that much lower prices lie ahead. This will not be a straight-down decline, but a series of intermediate-term rallies and declines until we have reached the low point.
SPX: Intermediate trend - Near reversing! The intermediate move which started in March is coming to an end. But we will need confirmation by trading below the main trend line which is currently just a little above 1000.
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Saturday, September 26, 2009
Stock Market S&P 500 Index Vulnerable to Downside Test of Lower Bollinger Band / Stock-Markets / Stock Index Trading
The juxtaposition of the Bollinger Bands with the price structure has caught my attention ahead of the weekend. Let¹s notice that since Wednesday¹s peak at 1075.75, which reversed from just beneath the upper BB, the S&P 500 emini price declined directly towards the rising 20-day moving average, which represents the mid-point between the upper and lower BBnds. Within a bull trend accompanied by rising momentum (RSI), it is typical of a decline to hold in and around the 20 DMA and then turn to the upside to continue to higher-highs. Such was the case during April, May and then again from mid-July to the present.
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Saturday, September 26, 2009
Stock Market Third Consecutive Down Session / Stock-Markets / Stock Index Trading
The indices were down again for the third consecutive session, which is the first time in quite a while, and may have confirmed the the post-FOMC announcement reversal that took place on Wednesday may have turned out to be a significant top.
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Saturday, September 26, 2009
Stock Market Trend Up But Tired / Stock-Markets / Stock Index Trading
[Thanks to all of for buying Always a Winner last Friday. You helped the book make the Top 100 in business and investing books!!!]
I had the great pleasure of meeting one of my CNBC favorites last week at a conference, Bob Pisani. What I love about Bob is his opinion-free market analysis that is based on facts rather than rants.
Saturday, September 26, 2009
Stock Market Reverses Down Off of Uptrend Channel / Stock-Markets / Stock Index Trading
The market has been on a move higher the past couple of weeks but with one major difference over the move up the previous weeks and months prior to that as was noted in last weeks report. Late last week the market started to print Doji Candlesticks, often a precursor to a change in trend move up against major trendline resistance which can be seen in our three index charts. The recent move up had become a grind. Like glass on a blackboard.
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Friday, September 25, 2009
e-Mini S&P Pressing Against Support / Stock-Markets / Stock Index Trading
With just over two hours remaining in today’s session, let’s notice that the S&P 500 emini futures is pressing against key support at 1039, which represents the lower channel trendline off of the July low. If the index closes today’s session either leaning against or below 1039, then the technical set-up will take on a considerably more bearish tilt that will point towards additional weakness into the 1032 area directly.
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Friday, September 25, 2009
Stock Market Looks For More Down Side, Rimm Slaughtered On Earnings / Stock-Markets / Stock Index Trading
We had a nice one day plus pullback from yesterday's highs. 200 Dow points from high to low. Nice selling when we suddenly ran into the 20-day exponential moving average on the S&P 500 at 1043 (1045 low today).
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Wednesday, September 23, 2009
Stock Market Stuck in the Gap... / Stock-Markets / Stock Index Trading
We made a nice move a few days back to get through the bottom of that 1060 to 1080 gap on the S&P 500. We are hanging out above 1060 but are unable to this point to take out 1080 thus we're literally stuck in the gap. A tough place to get much volatility.
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Tuesday, September 22, 2009
Beware of Negative Stock Market Divergences / Stock-Markets / Stock Index Trading
Last week, I spoke about Divergences and their importance.
Some technicians use a 30 day Momentum indicator in order to spot divergences. Although it is not one of my favorites, it does offer a divergence warning for investors.
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Tuesday, September 22, 2009
SPX Stocks Index Topping or Breaking Out? / Stock-Markets / Stock Index Trading
While there certainly could be a top here I think that to call one at this point would be pure speculation and guesswork. Picking a top is not advisable. There is some evidence that we are seeing the acceleration of the bull trend rather than its fading.
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Monday, September 21, 2009
Major Technical Forces Are About to Collide in the S&P 500 Stocks Index / Stock-Markets / Stock Index Trading
The S&P 500 has seen remarkable recovery from the lows that were seen earlier this year. However, all of that may come to an end as we fast approach a strategic level for this market. There are two major technical indicators that are colliding at a crucial point and time. Unless you're aware of these indicators, it could be very expensive.
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Monday, September 21, 2009
What GE's Chart Tells About SPY / Stock-Markets / Stock Index Trading
For the most part General Electric (GE) and the S&P 500 Depository Receipts (AMEX: SPY) exhibit very similar patterns during the past year or so. However, upon a closer look, we notice that GE actually peaks slightly before the peak in the SPY. After the March rally, GE peaked on May 8, while the SPY peak on June 11.
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