Category: Stock Index Trading
The analysis published under this category are as follows.Wednesday, May 27, 2009
Banking Sector Index BKX at Critical Juncture / Stock-Markets / Stock Index Trading
Institutional Investors have one special index that they look to when trying to measure the strength of the economy.
What's the Index and why do they favor it?
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Monday, May 25, 2009
Stock Market Rally Red Flags / Stock-Markets / Stock Index Trading
I have spoken about the red flags that are out there but we all know you don't turn bearish just because you are starting to see some red flags. It puts us on heightened awareness no doubt but you don't just flip sides until you see the proper sell signal get put in to place. That would a break and close convincingly below 862 S&P 500 or its 50 day exponential moving average.
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Saturday, May 23, 2009
Oversold Stock Market Expected to Bounce Higher Next Week / Stock-Markets / Stock Index Trading
The good news is: In spite of being down all of the last 4 days of last week, all of the major indices finished higher for the week.
Short Term: A reaction usually follows 4 consecutive days in either direction.
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Friday, May 22, 2009
Overbought Stock Market Downtrend Signaled 10 days ago? / Stock-Markets / Stock Index Trading
C-RSI "overbought" condition ...
We have been showing this chart to our paid subscribers for days, and now we will share it with you.
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Friday, May 22, 2009
Inflation Expectations Puts Pressure on Equities / Stock-Markets / Stock Index Trading
This is a headwind for equities that has started to pop up over the past couple of weeks. Yet, it has taken years to ferment and likely will persist for the foreseeable future. The headwind I am talking about is inflation.
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Friday, May 22, 2009
S&P 500 Stock Market Internals Then and Now / Stock-Markets / Stock Index Trading
The S&P 500 index (proxy SPY and IVV) is in much better shape now than on March 6 (the low so far, and maybe the low). However, not all lights are flashing green yet.
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Friday, May 22, 2009
Solid Down-Day for Stock Market / Stock-Markets / Stock Index Trading
The indices had a solid down-day today, falling from the get-go and stair-stepping their way lower all session, except for a late-morning consolidation. In the last hour they came back sharply, paring back the losses, but still ended down.
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Thursday, May 21, 2009
Stock Market Indices Finally Roll Over / Stock-Markets / Stock Index Trading
The stock market indices finally rolled over and had a negative session, but the day started out with a very strong surge to the upside. They went to new rally highs on both indices, which fell short of the early May rally highs. With the retest of the highs falling short, they rolled over in a strong 3-wave decline and got not far off the lows for the day. Only a last 10-minute slight bounce brought them off the exact lows for the session.
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Tuesday, May 19, 2009
Strock Market Indices End Mixed as Blue Chips Slip into Loss Column / Stock-Markets / Stock Index Trading
The markets were up in the morning, and flattened out by mid-day on the S&P 500, although the Nasdaq 100 kept making higher highs. In the last hour that negative divergence finally affected the indices, as they both rolled over, closing with losses in the Dow and S&P 500, still managing to hang on to gains on the NDX and Philadelphia Semiconductor Index (SOXX). So, it was a mixed close.
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Tuesday, May 19, 2009
Overbought Stock Market is Not a Sell Signal / Stock-Markets / Stock Index Trading
In the face of some deeper selling last week, we saw some strong positive divergences on the 60-minute charts set up on the MACD from well below the zero line on Friday. That was a signal that said it was time to go long into the teeth of the down side.
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Monday, May 18, 2009
Nasdaq Q's Not Exhibiting Bullish Form / Stock-Markets / Stock Index Trading
One indicator that complicates the action in the overall market (S&P 500) is the underperformance of the Nasdaq 100 as represented by the PowerShares QQQ Trust (NASDAQ: QQQQ). We notice that the Q’s have not been able to generate as much excitement as the S&P 500 Depository Receipts (AMEX: SPY) this morning and have yet to hurdle Friday’s high at 33.82.
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Sunday, May 17, 2009
Stock Market Trading In Between Support... / Stock-Markets / Stock Index Trading
A week of selling came our way and it had a good side to it if you're a bull. Selling never feels good, but you have to look deeper than just price to see if what took place during that selling possibly gives us something to get hopeful about. Again, that's if you're near-term bullish only. The bears will want to see if the selling is the start of something bigger for them and will look deeply inside the numbers for the week to see if their hopes will soon be put in to motion as well. The week started out with most of the index charts and just about every leadership stock chart on high poles and very overbought at 918 gap resistance. We were able to get a bit higher than that level but the overbought extremes would not allow the market to make a deeper move to the upside. we started to gradually pull back and we warned of a test of the recent breakout at 875.
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Sunday, May 17, 2009
Stock Market Symmetry Scenario Gives S&P 500 Decline More Room to Run / Stock-Markets / Stock Index Trading
Let¹s say that the symmetry exhibited by the March-May rally with the January-March decline continues into the future. What would the next leg of the S&P 500 look like?Read full article... Read full article...
Friday, May 15, 2009
UltraShort SPY (SDS) Looks Higher / Stock-Markets / Stock Index Trading
UltraShort SPAs we head into the noon-time lull, the ProShares UltraShort SPY (NYSE: SDS) is carving out an interesting and very nervous near-term pattern between 61.30/80 on the high side, juxtaposed against 59.60/40 on the low side. The weight of my near-term technical work leans towards an upside resolution to the trading range, with the SDS thrusting above 61.80/85 towards my optimal target zone of 63.50. At this juncture, only another downside pivot reversal that presses the SDS beneath 59.50/40 will wreck the developing pattern.Y (SDS) Looks HigherRead full article... Read full article...
Thursday, May 14, 2009
This Leading Stock Market Indicator Holds the Key for Investors / Stock-Markets / Stock Index Trading
Tom Dyson writes: To predict the stock market, I watch lumber...
To store lumber, you need a large climate-controlled warehouse with a railroad spur. Even then, it could still spoil within six months, destroying your entire investment.
Thursday, May 14, 2009
Stock Market Indices Rally Back to Resistance Before Giving Back a Chunk of Gains / Stock-Markets / Stock Index Trading
The indices had a snapback session from a technically oversold condition, and rallied back to resistance but rolled over in the last hour and took back a chunk of the gains. However, they still ended positive on the session.
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Wednesday, May 13, 2009
Technical Leading Stock Market Indicators That Professional Investors Look At / Stock-Markets / Stock Index Trading
Professional investors have an advantage for a lot of reasons. One reason is because of the amounts and types of data they look at.
One thing that professional investors keep an eye on is the volume of Advancing and/or Declining shares every day.
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Wednesday, May 13, 2009
Downward Pressure Building for S&P 500 Stock Market Index / Stock-Markets / Stock Index Trading
In the May newsletter, I indicated that major indexes were expected to retest their march lows by early July. Models were suggesting that the highest probability of renewed weakness could be expected in mid-May. Though the actual change in trend has not quite occurred, the bullish attitude and trading over the last 2-3 days for the benchmark S&P 500 has clearly shifted to a more bearish tone.
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Wednesday, May 13, 2009
Stock Market SP 500 Index Important Technical Trading Signals / Stock-Markets / Stock Index Trading
Time to Take Another Look at the SP 500. The SP 500 index is caught between two trend lines that are the dominant technical indicators right now for this market. If either gives way, it will point the direction of the next major swing.
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Tuesday, May 12, 2009
More Stock Market Headwinds to Worry About / Stock-Markets / Stock Index Trading
On the way into the office this morning, I was listening to CNBC radio on Sirius Satellite. In that 7 minute drive, I think I heard the word "inflation" about 15 times. With year over year CPI virtually at zero, I am not sure what the worry is all about. This is the reality. Inflation is low.
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