Saturday, October 28, 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
Friday, October 27, 2006
Trading Education Tutorial
The Big W
The Big W
Double Bottoms provide visual reference points that map the entire reversal process. Once located, these signposts identify most key price pivots and flash early warning signals when violated. The most common of these, The Big W, begins at the last major high printed by a downtrending stock, just prior to the first bottom. The first bounce after this low creates the center of the W as it retraces between 38% and 62% of that last downward move.
This rally fades and price descends back toward a test of the last bottom low. At this moment the trader listens closely for the first bell to ring. A wide range reversal bar (doji or hammer) may appear close to the low price of the last bottom. Or volume spikes sharply but price does not fail. Better yet, a Turtle Reversal develops where price violates the last low by a few ticks and then prints a sharp move back above support. Should any or all of these events occur, we mark the potential second leg on our Big W. Read More...
This rally fades and price descends back toward a test of the last bottom low. At this moment the trader listens closely for the first bell to ring. A wide range reversal bar (doji or hammer) may appear close to the low price of the last bottom. Or volume spikes sharply but price does not fail. Better yet, a Turtle Reversal develops where price violates the last low by a few ticks and then prints a sharp move back above support. Should any or all of these events occur, we mark the potential second leg on our Big W. Read More...
NASDAQ Chart of the Day
Daily Trading Signals
PMTI got a huge breakaway gap out of a large triangle range, which is highly bullish. Increased volume also helps the bullish case. Look for more strength out of this pattern.
Daily Trading Signals
NYSE Chart of the Day
HXL has gotten a huge breakout from the large consolidation range at 15.50 via a nice breakaway gap, which is very bullish. Look for more strength from this stock.
Daily Trading Signals
HXL has gotten a huge breakout from the large consolidation range at 15.50 via a nice breakaway gap, which is very bullish. Look for more strength from this stock.
Daily Trading Signals
Trading Education Tutorial
Support and Resistance Levels
History Tells Us When Securites are Overbought or Oversold
Support indicates a level on the chart where we can expect an increase in the demand for a security (buyers take over). How do we know this? By identifying this reaction to this price level in the chart's history.
Read More...
Support and Resistance Levels
History Tells Us When Securites are Overbought or Oversold
Support indicates a level on the chart where we can expect an increase in the demand for a security (buyers take over). How do we know this? By identifying this reaction to this price level in the chart's history.
Read More...
Daily Market Commentary
Updated Thursday, 10/26 for Friday's market.
New Highs...
Read More...
Updated Thursday, 10/26 for Friday's market.
| Key DOW Levels for 10/27 | |
| UP | Above 12,200 |
| DN | Below 12,075 |
New Highs...
- Dow reverses after early decline, rallies to new highs. The index held firmly at 12,100 before rallying solidly to new all-time highs for another solid 29 point gain. Further strength should be seen if 12,100 continues to hold.
- The NASDAQ continues lead the broader market higher and the S&P continues to follow suit. Look for continued strength above near-term support.
Summary
The Dow ended the day with a modest gain, but held its ground despite a huge sell-off to begin the day. The index will continue to push steadily higher within the current uptrend, unless 12,100 is solidly violated.
- The NASDAQ continues lead the broader market higher and the S&P continues to follow suit. Look for continued strength above near-term support.
Summary
The Dow ended the day with a modest gain, but held its ground despite a huge sell-off to begin the day. The index will continue to push steadily higher within the current uptrend, unless 12,100 is solidly violated.
Read More...
Thursday, October 26, 2006
|
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...
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...
Trading Ideas & Picks
Trading Picks - Read More
WMT: The bulls have managed to push the price above a long-term support/resistance level - a factor that has affected the stock's direction since early 2004. The recent move above the $51 resistance suggests that the bulls are stepping back in and could be a signal of a continued move higher...
Trading Ideas & Picks
Trading Ideas - Read More
SYNA: Setting up nicely for a continuation of its current uptrend. Stock broke past resistance and to new trend highs. Stock has since traded at the upper end of the breakout, representing a consolidation and possible setup for further upside. Look to go long at 28.51...
Trading Education Tutorial
Measured and Exhaustion Gaps
Identifiable Patterns After Confirmation Move
We have previously mentioned the three types of gaps that are of relevance to investors - the breakaway gap, the measured (or continuation) gap, and the exhaustion gap. We previously discussed the breakaway gap, but it is important to discuss the measured gap and exhaustion gap at the same time. Why? Because it is difficult to tell one from the other until after the fact.
Read More...
Measured and Exhaustion Gaps
Identifiable Patterns After Confirmation Move
We have previously mentioned the three types of gaps that are of relevance to investors - the breakaway gap, the measured (or continuation) gap, and the exhaustion gap. We previously discussed the breakaway gap, but it is important to discuss the measured gap and exhaustion gap at the same time. Why? Because it is difficult to tell one from the other until after the fact.
Read More...
NASDAQ Chart of the Day
Daily Trading Signals
WIRE is breaking a large triangle pattern to the downside via a solid breakaway gap. Look for more weakness from this stock.
Daily Trading Signals
NYSE Chart of the Day
Daily Trading Signals
CFC has gotten a huge breakout from a solid triangle, which is highly bullish. Watch for continued strength from this stock.
Daily Trading Signals
Daily Market Commentary
Updated Wednesday, 10/25 for Thursday's market.
Still Holding...
Read More...
Updated Wednesday, 10/25 for Thursday's market.
| Key DOW Levels for 10/26 | |
| UP | Above 12,150 |
| DN | Below 12,050 |
Still Holding...
- Dow continues holding at highs, resumes development of consolidation. The index closed the day at the top of the pattern with a 7 point gain, and looks close to breaking out.
- The NASDAQ continues to wind up within a large triangle pattern, while the S&P continues to push higher. Look for continued overall strength, unless support is violated.
Summary
The Dow continues to trade within the boundaries of a clear consolidation that should spark the next key move. Watch the boundaries of this pattern for big movement..
- The NASDAQ continues to wind up within a large triangle pattern, while the S&P continues to push higher. Look for continued overall strength, unless support is violated.
Summary
The Dow continues to trade within the boundaries of a clear consolidation that should spark the next key move. Watch the boundaries of this pattern for big movement..
Read More...
Wednesday, October 25, 2006
Trading Education Tutorial
Island Reversals
Stand Alone Formation Speaks Volumes
Reversals tend to occur slowly, with securities forming double bottoms, higher lows, head and shoulders patterns, etc. before starting a new trend. However, sometimes we see a dramatic reversal immediately, and one of the best indications of these types of reversals is Island Tops and Bottoms.
Read More...
Island Reversals
Stand Alone Formation Speaks Volumes
Reversals tend to occur slowly, with securities forming double bottoms, higher lows, head and shoulders patterns, etc. before starting a new trend. However, sometimes we see a dramatic reversal immediately, and one of the best indications of these types of reversals is Island Tops and Bottoms.
Read More...
NASDAQ Chart of the Day
Daily Trading Signals
UTHR has gotten a huge breakout from a large triangle via a measured gap and increased volume. Look for continued upside movement.
Daily Trading Signals
NYSE Chart of the Day
Daily Trading Signals
AXE is getting a big upside break from a solid consolidation at 59.00, which is highly bullish. Look for continued strength in this stock.
Daily Trading Signals
Daily Market Commentary
Updated Tuesday, 10/24 for Wednesday's market.
Consolidating...
Read More...
Updated Tuesday, 10/24 for Wednesday's market.
| Key DOW Levels for 10/25 | |
| UP | Above 12,150 |
| DN | Below 12,000 |
Consolidating...
- Dow continues holding at highs, resumes development of consolidation. The index ended the day with a mild 11 point gain, but a breakout from this consolidation could spark bigger movement.
- The NASDAQ continues to wind up within the boundaries of a large triangle pattern, while the S&P remains within a very tight consolidation. A breakout from either of these patterns will spark nice movement tomorrow.
Summary
The Dow continues to hold at the overall highs within the boundaries of a tight consolidation. Look for continued range movement ahead of the next key breakout move from this range.
- The NASDAQ continues to wind up within the boundaries of a large triangle pattern, while the S&P remains within a very tight consolidation. A breakout from either of these patterns will spark nice movement tomorrow.
Summary
The Dow continues to hold at the overall highs within the boundaries of a tight consolidation. Look for continued range movement ahead of the next key breakout move from this range.
Read More...
Tuesday, October 24, 2006
Daily Stock Picks
Bottoming -
Oct 23 for July 24:
RDYN UFPI WTFC
(Stocks making a 52 WK low but closing higher than they opened)
Oversold Stocks -
Oct 23 for July 24:
BPOP COMS CTDC FLML NVLS PSUN UCTT
(Stocks closing higher than they opened, crossing up through their 25 Stochastic level, and on 150% + greater than average 6 month volume)
Overreaction -
Oct 23 for July 24:
RDYN
(Potential Bullish Bounce: Stocks making a 52 WK low and moving down 10% or more in one day)
More... Stock Picks Page #1
Bottoming -
Oct 23 for July 24:
RDYN UFPI WTFC
(Stocks making a 52 WK low but closing higher than they opened)
Oversold Stocks -
Oct 23 for July 24:
BPOP COMS CTDC FLML NVLS PSUN UCTT
(Stocks closing higher than they opened, crossing up through their 25 Stochastic level, and on 150% + greater than average 6 month volume)
Overreaction -
Oct 23 for July 24:
RDYN
(Potential Bullish Bounce: Stocks making a 52 WK low and moving down 10% or more in one day)
More... Stock Picks Page #1
Quantum Swing Trader
Exclusive Preview
Trading Tools
Get Ahead of the Game
Selection of trading software and trading services that can help you trade better. Find which stocks or options to trade and get accurate Buy/Sell/Sell Short signals to enter and exit trading positions in a timely manner. Whether you are a beginner or an experienced trader this products will be able to help you maximize your potential and returns.
Daily Stock Picks
Bottoming -
Oct 20 for Oct 23:
SCKT SFUN
(Stocks making a 52 WK low but closing higher than they opened)
Oversold Stocks -
Oct 20 for Oct 23:
ASML RBAK
(Stocks closing higher than they opened, crossing up through their 25 Stochastic level, and on 150% + greater than average 6 month volume)
Overreaction -
Oct 20 for Oct 23:
GHM STMP
(Potential Bullish Bounce: Stocks making a 52 WK low and moving down 10% or more in one day)
More... Stock Picks Page #1
Bottoming -
Oct 20 for Oct 23:
SCKT SFUN
(Stocks making a 52 WK low but closing higher than they opened)
Oversold Stocks -
Oct 20 for Oct 23:
ASML RBAK
(Stocks closing higher than they opened, crossing up through their 25 Stochastic level, and on 150% + greater than average 6 month volume)
Overreaction -
Oct 20 for Oct 23:
GHM STMP
(Potential Bullish Bounce: Stocks making a 52 WK low and moving down 10% or more in one day)
More... Stock Picks Page #1
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
Trading Ideas & Picks
Trading Picks - Read More
QQQQ: Negative earnings from companies such as Advanced Micro Devices and SanDisk caused some traders to believe that a test of the trendline would be likely, but positive results from Apple Computer, eBay and Google helped counterbalance the results and keep the bears from pushing the index lower. It will be interesting to see how the earnings ahead will affect the QQQQ and we'll continue to watch the ascending trendline to see if it will affect the index's short-term direction...
Trading Tools
Shogun Swing Trading - Best Swing Trading:
Shogun Trading's approach can benefit all stock traders, from day traders to long term swing traders. We are proud to show some of the best Performance in Day Trading, Longer Term Swing Trading Strategy, Systemized Swing Trading and through our Educational Courses and Videos... ยป Get More Info Now!
Shogun Trading's approach can benefit all stock traders, from day traders to long term swing traders. We are proud to show some of the best Performance in Day Trading, Longer Term Swing Trading Strategy, Systemized Swing Trading and through our Educational Courses and Videos... ยป Get More Info Now!
NASDAQ Chart of the Day
Daily Trading Signals
NUVO is winding up within the boundaries of a large triangle pattern that has continued to develop over the last two months. A breakout from this pattern should spark key movement. Watch 19.75 up, and 18.50 down.
Daily Trading Signals
Technical Indicators
CCT Bollinger Bands Histogram
Read More...The CCT Bollinger Band Oscillator, reconfigures John Bollinger's classic Bollinger Bands (envelopes plotted at two Standard Deviations above and below a moving average) by drawing two parallel lines replacing the erratic envelopes.
The parallel lines represent a measurement of two Standard Deviations from the mean and are assigned a value of zero and 100 on the chart. The indicator represents the price as it travels above and below the mean (50%) and outside the two standard deviations (zero and 100). Penetration of the upper band represents overbought conditions while penetration of the lower band signifies oversold conditions.
Usage of the CCT Bollinger Band Oscillator to identify "failure swings" and "divergences" can lead to significant reversals...
The parallel lines represent a measurement of two Standard Deviations from the mean and are assigned a value of zero and 100 on the chart. The indicator represents the price as it travels above and below the mean (50%) and outside the two standard deviations (zero and 100). Penetration of the upper band represents overbought conditions while penetration of the lower band signifies oversold conditions.
Usage of the CCT Bollinger Band Oscillator to identify "failure swings" and "divergences" can lead to significant reversals...
NYSE Chart of the Day
Daily Trading Signals
IKN is holding firmly beneath major resistance at 14.36, which has held since April. Look for weakness to occur from this level, unless a breakout is seen.
Daily Trading Signals
Trading Education Tutorial
Consolidations
Sideways Movement Gives Indication of Future Price Direction
A consolidation is a place where buyers and sellers are very closely matched in numbers. As the battle ensues, others notice that the market is consolidating, and begin considering to get on board. As soon as a break from the consolidation occurs, the latent buyers or sellers usually begin taking positions.
Read More...
Consolidations
Sideways Movement Gives Indication of Future Price Direction
A consolidation is a place where buyers and sellers are very closely matched in numbers. As the battle ensues, others notice that the market is consolidating, and begin considering to get on board. As soon as a break from the consolidation occurs, the latent buyers or sellers usually begin taking positions.
Read More...
Daily Market Commentary
Updated Monday, 10/23 for Tuesday's market.
Steady Rally...
Read More...
Updated Monday, 10/23 for Tuesday's market.
| Key DOW Levels for 10/24 | |
| UP | Above 12,150 |
| DN | Below 12,000 |
Steady Rally...
- Dow rallies above 12,000, closes at all-time highs. The index held at the highs throughout the session and recorded a solid 115 point gain for the session.
- The NASDAQ and S&P each rallied solidly to begin the day. Look for continued overall strength, unless key near-term support levels are violated.
Summary
The Dow closed the day at the highs of the session after rallying big to begin the day. The index is now holding at the highs of the session and could build out the tight consolidation for another rally soon. Watch for continued strength, unless 12,050 is violated.
- The NASDAQ and S&P each rallied solidly to begin the day. Look for continued overall strength, unless key near-term support levels are violated.
Summary
The Dow closed the day at the highs of the session after rallying big to begin the day. The index is now holding at the highs of the session and could build out the tight consolidation for another rally soon. Watch for continued strength, unless 12,050 is violated.
Read More...
NASDAQ Chart of the Day
Daily Trading Signals
NETL is getting a big downside break through the bottom of a large triangle range. Watch for continued weakness from this stock.
Daily Trading Signals
NYSE Chart of the Day
VFC took a large gap up this morning and immediately filled it to the downside en route to heavy selling to the Close. This behavior is highly bearish and could spark much more additional selling. Watch 74.00 for a trend line break to indicate another wave of declines.
Daily Trading Signals
VFC took a large gap up this morning and immediately filled it to the downside en route to heavy selling to the Close. This behavior is highly bearish and could spark much more additional selling. Watch 74.00 for a trend line break to indicate another wave of declines.
Daily Trading Signals
Trading Education Tutorial
Saucer Patterns
Rare Pattern Is One of the Most Predictive
One of the most predicitive chart patterns you will come across is the saucer pattern. Saucers are also referred to as "bowls" or even "rounded tops or bottoms", and one look at this pattern tells where these names are derived from. However, there is a problem with saucer patterns - they're hard to find.
Read More...
Saucer Patterns
Rare Pattern Is One of the Most Predictive
One of the most predicitive chart patterns you will come across is the saucer pattern. Saucers are also referred to as "bowls" or even "rounded tops or bottoms", and one look at this pattern tells where these names are derived from. However, there is a problem with saucer patterns - they're hard to find.
Read More...
Daily Market Commentary
Updated Friday, 10/20 for Monday's market.
Still Holding...
Read More...
Updated Friday, 10/20 for Monday's market.
| Key DOW Levels for 10/23 | |
| UP | Above 12,050 |
| DN | Below 11,940 |
Still Holding...
- Dow pushes back and forth around 12,000, closes relatively flat. The indexeventually closed the day with a small loss, but remained barely above the 12,000 level.
- The NASDAQ and S&P each traded mostly sideways-to-up after the early weakness. Each continues to hang within their respective ranges, which could be on the verge of a big breakout opportunity.
Summary
The Dow closed the day with a 9 point loss and continues to struggle in the 12,000 zone. The index has maintained a highly bullish stance within a clear uptrend, but a huge violation through 11,950 could spark big weakness.
- The NASDAQ and S&P each traded mostly sideways-to-up after the early weakness. Each continues to hang within their respective ranges, which could be on the verge of a big breakout opportunity.
Summary
The Dow closed the day with a 9 point loss and continues to struggle in the 12,000 zone. The index has maintained a highly bullish stance within a clear uptrend, but a huge violation through 11,950 could spark big weakness.
Read More...
