Friday, December 15, 2006

 



Using Retracement Levels in Your Trading

Leonardo Fibonacci da Pisa was a thirteenth century mathematician who (re) discovered what is today known as the Fibonacci sequence. Adding 1+1 and then continuing to add the sum to the previous number will arrive at this numerical sequence. The sequence gives rise to the following numbers: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55 and so on.

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NASDAQ Chart of the Day




om a large triangle range via a breakaway gap, which is a bullish signal. Look for continued strength from this pattern toward 10.00.

Daily Trading Signals

 
NYSE Chart of the Day



ATG has halted its advance at key resistance at 40.00 and continues to hold firmly. If this stock cannot rise above this level, we could see another steady decline back toward 35.00.

Daily Trading Signals

 
Daily Market Commentary

Updated Thursday, 12/14 for Friday's market.


Key DOW Levels for 12/15

P

Above 12,450

DN

Below 12,300


Breakout & Rally...

- Dow finally breaks resistance, rallies to the Close. The index is now holding firmly above resistance and could be headed higher still.

- The NASDAQ and S&P each broke out of key ranges today and proceeded to rally. Look for continuation pattern to push these higher.

Summary

The Dow has finally broken key resistance and has reached all-time highs yet again. If the index can continue to build out above resistance, we could see much more strength ahead.

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Thursday, December 14, 2006

 
Trading Education Tutorial

Volume Climax





Volume Helps Identify Reversals

Various price patterns can alert us to potential reversal candidates. Trendline Breaks, Support and Resistance Levels, Fibonacci Retracement Levels and other price information are valuable in determining a change in direction for a security. However, one of the most overlooked chart patterns that help us determine reversals is not reflected in the price itself. Volume climaxes are easily identifiable and valuable in assessing a change in market sentiment.

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NASDAQ Chart of the Day




SNTS got a nice breakout from a large triangle range via a breakaway gap, which is a bullish signal. Look for continued strength from this pattern toward 10.00.

Daily Trading Signals

 
NYSE Chart of the Day




JCI has formed a large consolidation at the highs of the latest advance and is likely approaching a breakout soon. Watch 85.00 up and 80.00 down for a potential 10 point move.

Daily Trading Signals

 
Daily Market Commentary

Updated Wednesday, 12/13 for Thursday's market.


Key DOW Levels for 12/14

P

Above 12,375

DN

Below 12,250


Still Holding...

- Dow continues holding within clear consolidation range, holds at resistance. The index eventually closed the day with a mild 2 point gain, but continues to wind up for the much bigger breakout move.

- The NASDAQ and S&P each began the day strong, but immediately pulled back from highs. Look for a more solid breakout with follow-through tomorrow.

Summary

The Dow continues to wind up within the large consolidation pattern, which we will continue to watch closely. Look for more range movement until this pattern is solidly broken.

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Technical Indicators

True Strength Index

The True Strength Index (TSI) is a momentum-based indicator, developed by William Blau. Designed to determine both trend and overbought/oversold conditions, the TSI is applicable to intraday time frames as well as long term trading.

The True Strength Index is a variation of the Relative Strength indicator. It uses a double smoothed exponential moving average of price momentum to minimize choppy price changes and highlight spot trend changes with little or no time lag. An increasing True Strength value indicates increasing momentum in the direction of the price movement.

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NYSE Chart of the Day



ALGN is clearly winding up within the boundaries of a large triangle pattern. Watch for a breakout from this pattern for the next key move: 14.50 up and 13.00 down.

Daily Trading Signals

 
NYSE Chart of the Day



BGG has pulled back 50% of the prior move, which means we could see another big advance upon us. Watch for a move through 28.75 for continued strength.

Daily Trading Signals

Wednesday, December 13, 2006

 

The Ultimate Trading Machine by NetPicks

UTM Goes Live!

This is it! Today is the day we've all been waiting for. The UTM Goes Live!

At 12:00pm EST (New York Time) The Ultimate Trading Machine is opening the doors to the massive onslaught of traders who have been pounding the blog and watching the videos for the last week in anticipation of this very moment. Today is the day you can finally get your copy...

http://www.netpicks.com/z/?i=494809&l=n7


If you hurry, you now have the chance to finally own what we believe will change the way you trade from today onward. Gone forever is the subjectivity. You'll immediately have more confidence, and get rid of all the second guessing and doubt - what a great feeling!

If you want your copy of The Ultimate Trading Machine, you really must grab it right away. If not you will miss out, plain and simple.

Based on the pre-registration numbers (over 600 for just 100 copies available), it looks like the site will be pulled down earlier than expected.

http://www.netpicks.com/z/?i=494809&l=n7


P.S. Hurry, before they're gone... if you are serious about trading, don't let this pass you by. The chance to own your UTM copy will be gone by Friday (or earlier if we sell out before that.) The next launch we do in a few months from now will have a price increase which will put the UTM at over $ 1500. http://www.netpicks.com/z/?i=494809&l=n7


 
Daily Market Commentary

Updated Tuesday, 12/12 for Wednesday's market.


Key DOW Levels for 12/13

P

Above 12,375

DN

Below 12,225


Winding Up...

- Dow bounces from lows, winds up within clear consolidation range. The index continues to wind up within a large consolidation range that spans from 12,250 to 12,360, which we'll want to watch for the next big breakout move.

- The NASDAQ and S&P each sold off heavily through the first part of the session, but rallied off lows with conviction, which bodes well for a potential upside break tomorrow.

Summary

The Dow closed the day well off the session's lows after bouncing off key near-term support at 12,250. Look for continued range movement within the consolidation range until a solid breakout is seen.

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Tuesday, December 12, 2006

 
Technical Indicators

Rate of Change

Rate of Change

The Rate of Change is an oscillator that displays the difference between the current price and the price x-time periods ago. As prices increase, the ROC rises and as prices fall, the ROC falls. The greater the change in prices, the greater the change in the ROC.

The 10-day ROC is an excellent short - to intermediate term overbought/oversold indicator. The higher the ROC, the more overbought the security; when the ROC falls expect a rally. As with all overbought/over-sold indicators, watching for the market to start its correction before placing a trade. Often extremely overbought/oversold readings usually imply a continuation of the current trend and any overbought market may remain that way for some time.

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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.

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NASDAQ Chart of the Day




ZOLT has been winding up for several months now and has formed a clear triangle range that could offer an explosive breakout opportunity. Watch 26.00 for strength and 22.00 for weakness.

Daily Trading Signals

 
NYSE Chart of the Day




UAG has formed a large inverted head-and-shoulders pattern at the highs with a clear neck line (resistance) formed at 24.15. This can be a highly bullish pattern, especially if resistance is broken with follow-through.

Daily Trading Signals

 
Daily Market Commentary

Updated Monday, 12/11 for Tuesday's market.


Key DOW Levels for 12/12

P

Above 12,375

DN

Below 12,200


Resistance Holds...

- Dow rallies throughout morning, but halts advance at major resistance. The index closed the day off the session's highs, but still managed to clock a gain of 21 points.

- The NASDAQ and S&P each rallied from early lows today, but stopped short of breaking out to the upside. Each index continues to wind up ahead of the next big move.

Summary

The Dow ended the day with a mild gain after rallying early in the day. The index continues to do battle with major resistance at 12,365, which we will continue to watch for major market direction.

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Monday, December 11, 2006

 
Technical Indicators

Projection Oscillator

The Projection Oscillator is a by-product of Dr. Mel Widner's Projection Bands. In essense a slope-adjusted Stochastic, the Projection Oscillator shows the relationship of the current price to its minimum and maximum prices over time. Unlike the Stochastic Oscillator, here the minimum and maximum prices are adjusted up or down by the slope of the price's regression line. It is this adjustment that makes the Projection Oscillator so responsive to short-term price moves.

Three common ways to interpret the Projection Oscillator:

· Overbought/oversold
· Crossovers
· Divergences

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Daily Stock Picks

Bottoming -

Dec 8 for Dec 11:
ALLT ANLY JMBA NWRE

(
Stocks making a 52 WK low but closing higher than they opened)


Oversold Stocks
-

Dec 8 for Dec 11:
QUIK VOCS MPET

(Stocks closing higher than they opened, crossing up through their 25 Stochastic level, and on 150% + greater than average 6 month volume)


Volume Pop
-

Dec 8 for Dec 11:
FORG GNVC IMMU MAMA MOVI MVIS ROHI WFII EXPE ICON ISIS NHWK VNDA


(Volume Pop With High ADX & RSI)


More... Stock Picks Page #1

 
Trading Ideas & Picks

Amgen, Inc. (NASDAQ:AMGN) Downside volume

AMGN: has dropped on fairly high volume the past few days. The stock is now trading on resistance turned support at 69. RSI consistently bounces at the 30 level...

Trading Picks - Read More

 
Trading Ideas & Picks

The QQQQ Report for December 11th - December 15th

QQQQ: Upward momentum may be getting exhausted in the short-term, but it could prove disastrous for traders looking to short the QQQQ because the moving averages are now in the proper order that traders look for when confirming a strong uptrend...

Trading Picks - Read More

 



Tightening Price Action Leads to a Breakout

There are various forms of consolidation and they occur anytime there is an equilibrium of buyers and sellers. One of the most predictive consolidation formations is the triangle.

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NASDAQ Chart of the Day




NVTL has formed a clear inverted head-and-shoulders pattern with a neck line at 10.00. This is a very bullish pattern, especially if a solid breakout occurs. Watch 10.00 for key strength.

Daily Trading Signals

 
NYSE Chart of the Day




KEA has formed a clear pennant consolidation that has formed at the recent lows, which is quite bearish. Watch 12.60 up, and 11.80 down for a breakout.

Daily Trading Signals

 
Daily Market Commentary

Updated Friday, 12/8 for Monday's market.


Key DOW Levels for 12/8

P

Above 12,375

DN

Below 12,075


V-Bottom Reversal...

- Dow reverses sharply from early lows, winds up beneath major resistance. The index continues to honor major resistance, but continues to wind up for a potentially huge breakout move.

- The NASDAQ and S&P traded fairly quietly after rallying strongly early in the day. Each index continues to build out ahead of the next major move.

Summary

The Dow closed the day beneath major resistance and is winding up within a tight pattern that has formed within the larger trading range. The Dow is clearly winding up for the next key move; so watch these patterns closely.

Read More...

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