Friday, April 21, 2006
Daily Market Commentary
Upside Break & Run
- Dow breaks consolidation to upside, rallies to six year highs.
| Updated Thursday, 4/20 for Friday's market. | ||||||
| ||||||
- Dow breaks consolidation to upside, rallies to six year highs.
- NASDAQ and S&P each pushed higher alongside the Dow today, but look to be 'topping out' more so than the blue chip index. Possible head-and-shoulders patterns are forming, which could orchestrate a big reversal. Read More...
NASDAQ Chart of the Day
EPEX is forming a bearish upward-sloping consolidation after the Feb-Mar decline. A downside break from this consolidation could unleash another big decline. Watch 24.85 for weakness.
Daily Trading Signals
Daily Trading Signals
Technical Indicators
Ehlers' Fisher Transform
Read More...
Ehlers' Fisher Transform
The Fisher Transform indicator attempts to be a major turning point indicator and is based on John Ehlers' November 2002 Stocks and Commodities Magazine article, "Using The Fisher Transform."
With distinct turning points and a rapid response time, the Fisher Transform uses the assumption that while prices do not have a normal or Gaussian probability density function (that familiar bell-shaped curve), you can create a nearly Gaussian probability density function by normalizing price (or an indicator such as RSI) and applying the Fisher Transform. Use the resulting peak swings to clearly identify price reversals.
With distinct turning points and a rapid response time, the Fisher Transform uses the assumption that while prices do not have a normal or Gaussian probability density function (that familiar bell-shaped curve), you can create a nearly Gaussian probability density function by normalizing price (or an indicator such as RSI) and applying the Fisher Transform. Use the resulting peak swings to clearly identify price reversals.
Read More...
PROFIT TAKING
Read More...
Psychologist, Dr. Daniel Kahneman (The Nobel prize in economics - the field of behavioral economics) basically shows that investors are irrational, but predictably irrational. They continue to make the same mistakes over and over. One of the biggest is a common inability to take a loss: taking a loss is so painful, it is simply avoided.
A trader's most valuable commodity is trading capital. What is the most important rule for a trader? Preserve your capital. This is what keeps a trader in the game, and it is foolish to do anything that will jeopardize it. Subsequently, to preserve a trader's capital, there are rules that help a trader, whether in short, intermediate or long term play.
The rules listed below are suggestions. Only the trader can decide which rule is important. However, when a trader decides on a set of rules, they should be used consistently. Rules make up a trader’s system and are enforced by discipline.
A trader's most valuable commodity is trading capital. What is the most important rule for a trader? Preserve your capital. This is what keeps a trader in the game, and it is foolish to do anything that will jeopardize it. Subsequently, to preserve a trader's capital, there are rules that help a trader, whether in short, intermediate or long term play.
The rules listed below are suggestions. Only the trader can decide which rule is important. However, when a trader decides on a set of rules, they should be used consistently. Rules make up a trader’s system and are enforced by discipline.
Read More...
Daily Stock Picks
Bottoming - AGEN FMER HNAB LNCR PLAY RBNC SLXP
(Stocks making a 52 WK low but closing higher than they opened)
Downtrend Stabilisation - AGEN IDIX
Overreaction - PLAY ROHI
(Potential Bullish Bounce: Stocks making a 52 WK low and moving down 10% or more in one day)
More... Stock Picks Page #1
Bottoming - AGEN FMER HNAB LNCR PLAY RBNC SLXP
(Stocks making a 52 WK low but closing higher than they opened)
Downtrend Stabilisation - AGEN IDIX
Overreaction - PLAY ROHI
(Potential Bullish Bounce: Stocks making a 52 WK low and moving down 10% or more in one day)
Thursday, April 20, 2006
Trading Signals of the Day
Bullish Reversal Triggers
Reversal bars are an objective technique used to time the entry of a trade. Read More...http://daily-stocks.netfirms.com/daily-trading-triggers.htm
The Lowdown on Bottoms
Bottoms print as a result of market physics. Uptrends and downtrends exhibit natural wave motion as they thrust forward, and they pull back to test gains or losses. This action-reaction becomes very important at market turning points. It implies that a reversal pattern will appear at some point in each trend. In an uptrend, a lower high will eventually follow a higher high and mark a new top. In a downtrend, lower lows will finally stop when price action prints a higher low. This marks the birth of a bottom. Read More...
Swing Trade of the Week
NTAP: Stock broke past a resistance area yesterday with a bullish green candle, then traded at the upper end of the bullish breakout candle, representing a consolidation and possible setup for further upside... Read More
Chart of the Week
Bullish Fundamentals
Based on our analysis of long-term growth, recent growth, growth projections, institutional trading, and valuations, we believe MTLG is likely to appreciate in price relative to other similar companies... Read More
Daily Market Commentary
Consolidating
- Dow holds yesterday's gains, forms tight consolidation at highs.
| Updated Wednesday, 4/19 for Thursday's market. | ||||||
| ||||||
- Dow holds yesterday's gains, forms tight consolidation at highs.
- NASDAQ and S&P each held on to yesterday's gains, which remains a very bullish factor. Look for continued range movement ahead of the next move. Read More...
Wednesday, April 19, 2006
Chart of the Week
Earnings Report Breakout
Earnings Report Breakout
INFY broke out to new five-year highs Monday as a result of a positive earnings report; over five million shares were traded in reaction to the news, and the stock rose over 13%. According to a study by Singal and Pritamani (2001), a high volume rise following an earnings report is bullish. Read More
Daily Market Commentary
Huge Rally
- Dow breaks through 10,200 rallies 195 points for the session.
- NASDAQ and S&P each ran alongside the Dow today en route to a day. Look for possible continuation patterns to form to aid in a further advance.
| Updated Tuesday, 4/18 for Wednesday's market. | ||||||
| ||||||
- Dow breaks through 10,200 rallies 195 points for the session.
- NASDAQ and S&P each ran alongside the Dow today en route to a day. Look for possible continuation patterns to form to aid in a further advance.
Tuesday, April 18, 2006
Try Shogun Best Swing Trader with master trader Shay Horowitz, one of the most profitable Day&Swing Trading service for over 4 Years Running. Absolute Top performance, best performing swing trading service on the net since 1996. Daily Swing picks from among 9,000+ stocks... Trade with professional traders... Consistent profits... Goal of 2%-5% per day... 100% technical analysis... Strict risk/reward ratios... » Get More Info Now!
Daily Market Commentary
Steady Decline
- Dow sells off throughout session, halts decline at 11,050.
| Updated Monday, 4/17 for Tuesday's market. | ||||||
| ||||||
- Dow sells off throughout session, halts decline at 11,050.
- NASDAQ led the broader market lower today, as the S&P brought up the rear. The indexes are now holding slightly off lows, but are vulnerable to more selling. Look for a potential continuation pattern to form.
Monday, April 17, 2006
Weekly Market Update
The market pulled back down to support levels. If it continues the move up, it will confirm support levels and the next up trend - it will start on the second wave up of a breakout... Read More
Daily Stock Picks
Bottoming - ACGY, AGEN, CMTL, ENTU, FMER, MDTH, MOGN, VEGF
(Stocks making a 52 WK low but closing higher than they opened)
Downtrend Stabilisation - AGEN
Bottoming - ACGY, AGEN, CMTL, ENTU, FMER, MDTH, MOGN, VEGF
(Stocks making a 52 WK low but closing higher than they opened)
Downtrend Stabilisation - AGEN
Oversold Stocks - CHRD, CYBS, LSCC, OIIM, STKL
(Stocks closing higher than they opened, crossing up through their 25 Stochastic level, and +150% greater than average 6 month volume)
More... Stock Picks Page #1
Daily Market Commentary
Still Holding...
- Dow trades sideways, continues holding at center of large range.
| Updated Thursday, 4/13 for Monday's market. | | |||||
| ||||||
- Dow trades sideways, continues holding at center of large range.
- NASDAQ and S&P each traded sideways-to-up throughout the session today, as each index basically held ground within the current range. Look for much of the same Monday until a clear and solid breakout is seen. Read More...
Trading Signals of the Day
Bullish Reversal Triggers
Reversal bars are an objective technique used to time the entry of a trade. Read More...http://daily-stocks.netfirms.com/daily-trading-triggers.htm
Recent Picks / Trading Ideas
 | Stochastic Reversal and Bullish MACD April 13 CEPH has bullish MACD and stochastic signals ... |
| Trading Ideas for today Apr 11 Momentum in the short run, according to our momentum models, is a headwind, and the long-term momentum measures are weakening ... |
| Weekly Market Update April 10 As we talked about on Friday, the 1750 proved to be mighty resistance for the NDX on Friday. It gapped up in what we call and exhaustion gap and then pulled back ... |
| Swing Trade of the Week Apr 6 ATHR: Stock surged through a resistance area with a bullish green candle, then traded at the upper end of the bullish green candle, representing a consolidation ... |
| Stochastics Reversal Apr 6 ED fell nearly 10% from late January to early April. We believe that a reversal of at least some of the decline is likely ... |
| DO - Now Ready to Move to $95 Area April 5 This stock acts very well for an oil stock and is now ready to move closer to the $95 area ... |
Sunday, April 16, 2006
Pattern Cycles: Tops
No trend lasts forever. Inevitably, crowd enthusiasm outpaces a stock's fundamentals and rallies stall. But topping formations do not end uptrends all by themselves. These stopping points may only signal short pauses that lead to higher prices. Then again, they could be long-term highs just before a major breakdown.
Read More...
No trend lasts forever. Inevitably, crowd enthusiasm outpaces a stock's fundamentals and rallies stall. But topping formations do not end uptrends all by themselves. These stopping points may only signal short pauses that lead to higher prices. Then again, they could be long-term highs just before a major breakdown.
Read More...
