Category: Stock Index Trading
The analysis published under this category are as follows.Wednesday, July 08, 2009
Stealth Stocks Bull Market Summer Correction Update / Stock-Markets / Stock Index Trading
The analysis of April 26th concluded that the Dow is targeting a high of 8,750 by mid May 2009 which was expected to be followed by a significant correction of 14% towards a Dow target of 7,500. The Dow hit the target on 2nd of June which was confirmed in the quick update at the time, and therefore expectations were for the significant correction to materialise.
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Tuesday, July 07, 2009
Stock Markets At an Important Line in the Sand / Stock-Markets / Stock Index Trading
Brian Hunt writes: It's time to check in on one of the "must watch" charts for the trader: The all-important S&P 500.Read full article... Read full article...
Monday, July 06, 2009
Blue Chips Lead Stock Market Rally After Early Sharp Setback / Stock-Markets / Stock Index Trading
The indices put on a steady rally all session after early morning sharp weakness, and ended in the positive column, other than the Nasdaq 100 (NDX) and Philadelphia Semiconductor Index (SOXX). The blue chip indices, in particular, rallied back steadily to end near the highs of the intraday 5-wave rally.
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Sunday, July 05, 2009
Stock Index Action Gives Bears a Chance to Gain Control in the Markets / Stock-Markets / Stock Index Trading
Current Positioning:
SPY: Nil (Cash)
QQQQ: Nil (Cash)
Sunday, July 05, 2009
Overbought Stock Market Enters Corrective Phase Rather than an Important 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 2012-2014. 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.
Saturday, July 04, 2009
Stock Market Potential Trend Changer / Stock-Markets / Stock Index Trading
There has been one constant since the March lows. Once we blasted up off the bottom, the S&P 500 took but a few weeks to clear the 50-day exponential moving average. Once over, it had never relinquished that key moving average until Thursday. Basically above for four months. When you lose a substantial moving average after that length of time, you need to take notice of this event and what the message is that it could quite conceivably be sending.
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Thursday, July 02, 2009
Stock Market Seasonality What is Going to Happen with the Upcoming July 4th Holiday? / Stock-Markets / Stock Index Trading
This issue combines a feature on seasonality with our outlook. With the rally progressing into the July 4th holiday, what will happen next?
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Wednesday, July 01, 2009
Stock Market S&P 500 Index Trend Update for July 2009 / Stock-Markets / Stock Index Trading
Today I'm going to take another look at the S&P 500 Index. It appears that some of the rose coloring on traders' glasses is beginning to wear thin. Many more traders now perceive this as a two way trading market as opposed to a one way street we witnessed in March and April.
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Tuesday, June 30, 2009
Stock Market Index Trading New Signal / Stock-Markets / Stock Index Trading
Official signal: CASH on SPX __ __ __ __
CASH on NDX __ __ __ __
Monday, June 29, 2009
Stock Index Trading Signals Update / Stock-Markets / Stock Index Trading
Current Positioning:
SPY: Short 50%
QQQQ: Short 25% (going to cash on Monday)
Sunday, June 28, 2009
New Stock Market Trading Signal Move to Cash on Nasdaq From Short / Stock-Markets / Stock Index Trading
The Nasdaq is showing continued strength and therefore the system is moving to cash. As a result, for the open on Monday June 29, we're going to suggest the following:Read full article... Read full article...
Sunday, June 28, 2009
Stock Market Investor Sentiment: Summer Doldrums / Stock-Markets / Stock Index Trading
It is the end of the month. It is the end of the quarter. It is the week before a holiday. This gives the market a slight upward bias for the coming week. In the intermediate term, the "Dumb Money" indicator remains bullish to an extreme degree, and typically this is a bearish signal. This is a real head wind for the market. Since the "dumb money" turned bullish 8 weeks ago, the S&P500 has lost a little more than 1%, the NASDAQ 100 is up about 6% and the Russell 2000 is flat. For the week ahead, I suspect the shorter term bullish bias and the longer term bearish bias will make the markets choppy and range bound. It is the summer doldrums!
Saturday, June 27, 2009
The Stock Markets Repeating Weekly Pattern / Stock-Markets / Stock Index Trading
The good news is: NASDAQ new highs surged on Friday to the highest level since last September.
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Saturday, June 27, 2009
Stock Market Trading Range Continues...Bullish Pattern Holds Potential / Stock-Markets / Stock Index Trading
We had a very interesting week of trading. We saw the bears get their chance to break the market down which would occur if the S&P 500 lost our 875-895 price and 50 EMA Support zone, yet that level was defended by the bulls mid-week. You will be able to see this very clearly in our first chart below of the SP 500. The market spent a long time trying to get through this difficult level when it blasted off the bottom in March. Once it cleared that difficult level the bears tried over and over to take that level back but the bulls would not allow that to take place. Once it became clear that our 50 EMA would hold, we saw a lot of short covering that allowed the market to trend higher late in the week.
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Friday, June 26, 2009
Stock Market New Sell Signal on Nasdaq and SPX / Stock-Markets / Stock Index Trading
The market hasn't been able to continue its push lower and is now showing signs strength. We're also leading up to end of quarter and so a retest of highs is possible.
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Friday, June 26, 2009
Stock Market Advantage Credit Spreads Weekly Update / Stock-Markets / Stock Index Trading
In a market that went up 3.9% for the month, ACS just generated its best return this year at 10%. When you consider that at the start of the year the S&P opened at 902, if you'd simply bought and held, you'd be up less than 2.5% in 6 months and gone through a lot of anguish along the way. On the other hand, the ACS strategy has added 36.5% on an uncompounded basis and has done it relatively comfortably. At this point, the average return is 6.08% Per Month and right on track with the average we aim for of 6% per month.
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Thursday, June 25, 2009
S&P Stock Index Trading Tools Update / Stock-Markets / Stock Index Trading
This is just an update on using the internal forces of the market to time new positions. In this short video we look at the internal workings of the S&P 500 index.
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Wednesday, June 24, 2009
S&P 500 UltraShort ETF (SDS) at Channel Bottom / Stock-Markets / Stock Index Trading
Since yest. 's high, the UltraShort S&P 500 ProShares (NYSE: SDS) has declined from near the top of its June price channel (59.50-60.00), to the bottom of the channel in the vicinity of 56.40. The low today so far is 56.50. Purely from a technical perspective, my question is whether or not the decline will hold around the channel support line, or if the line will break-- on the way towards a "gap-filling" expedition down to 55.60? The fact that today is "Fed Day" adds some intrigue and uncertainty to the situation.
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Tuesday, June 23, 2009
Seasonal Factors Influence Summer Stock Market Trend / Stock-Markets / Stock Index Trading
As we wind our way into the summer duldrums, much has been written of seasonal factors. "Sell in May and go away" is an often heard refrain, and this bit of market lore suggests market underperformance during the summer months and early fall. Like most things market related, there is some truth to this dogma, but of course, there are always exceptions.
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Monday, June 22, 2009
Stock & Commodity Markets Bullish Trends and Significant Corrections / Stock-Markets / Stock Index Trading
We were recently asked by a client, "If you see signs of a possible new bull market, why are we still sitting on so much cash?" It can be answered by using a fence analogy. We have been taking some smaller positions while maintaining a relatively high cash position in order to play both sides of the fence:
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