Friday, February 02, 2007
Trading Education Tutorial
Trendlines
Determining Market Reversals and Continuations
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Trendlines
Determining Market Reversals and Continuations
Trendlines are perhaps the oldest tools known to chartists. Trendlines form across peaks and valleys called pivot points - relative highs and lows in a chart. As more points form along a line, it becomes more "established". This means that, when the line is broken, it will likely follow through with a strong move in the new direction.
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NASDAQ Chart of the Day
Daily Trading Signals
CDNS got a big upside break through the top of a solid consolidation pattern at 19.20 and is now peaking at new highs. Look for more strength from this stock above 19.00.
Daily Trading Signals
NYSE Chart of the Day
Daily Trading Signals
ADM took a big breakaway gap to the upside through a couple major upper trend lines and with increased volume, which is highly bullish. Look for continued strength from this stock, especially if it remains above 34.00.
Daily Trading Signals
Daily Market Commentary
Updated Thursday, 2/1 for Friday's market.
Late-Day Strength...
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Updated Thursday, 2/1 for Friday's market.
| Key DOW Levels for 2/2 | |
| P | Above 12,725 |
| DN | Below 12,500 |
Late-Day Strength...
- Dow holds throughout session, gets bullish lift to the Close. The index even got a slow, but steady move higher to the Close to end the day with a solid 52 point gain, which continues to extend its gains above key resistance.
- The NASDAQ and S&P each pushed slowly higher late in the afternoon, but once again, the NASDAQ lagged the broader market averages. The tech-heavy index continues to hold way short of prior highs, whereas the S&P and Dow continue to push to new highs. Watch this index to key movement ahead.
Summary
The Dow closed the day with a modest rally today, which pushed the index to another all-time record closing high. The index continues to hold above the key 12,600 zone, which is quite bullish heading forward. However, watch this zone closely, as a break could bring a swift end to the current rally.
- The NASDAQ and S&P each pushed slowly higher late in the afternoon, but once again, the NASDAQ lagged the broader market averages. The tech-heavy index continues to hold way short of prior highs, whereas the S&P and Dow continue to push to new highs. Watch this index to key movement ahead.
Summary
The Dow closed the day with a modest rally today, which pushed the index to another all-time record closing high. The index continues to hold above the key 12,600 zone, which is quite bullish heading forward. However, watch this zone closely, as a break could bring a swift end to the current rally.
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Thursday, February 01, 2007
Stormchaser Technologies
StormChaser Technologies Systems
Read More...Stormchaser Technologies is an Automated Trading Systems Solutions Provider for Active Traders, Hedge Funds and Broker-Dealers. Whether you need to scan through a large universe of symbols, to back-test your trading system against historical data, or to implement multiple Black Box Trading Systems, Stormchaser Technologies has the solution for you!...
Trading Ideas & Picks
Trading Picks - Read More
Feb 1, 2007: The Macro weekly uptrend is still bullish, market ended the month in new Multi-year high territory, thereby keeping the uptrend intact. The longer term trend is up. Despite the uptrend, we would like to caution traders due to the recent rise in the market with little to no consolidation. With the extreme overbought stochstics, market is very susceptible for possible near term corrections. The short term trend is sideways to up...
Trading Ideas & Picks
Trading Picks - Read More
BA: Highlighted are several price levels that will be used by traders to give themselves an idea of where this stock could find support in the event of a pullback. The first area of short-term support is near $85...
Trading Ideas & Picks
Trading Ideas - Read More
LEAP: Stock surged past a resistance area with 2 bullish candles, traded at the upper end representing a consolidation and possible setup for further upside. Look to go long at 66.08...
Trading Education Tutorial
Reward:Risk Ratio
Assessing a Trades Potential
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Reward:Risk Ratio
Assessing a Trades Potential
When looking at a stock to buy, we look to various tools and techniques to help us assess the probability of its upward movement. However, will it go up is not the only question to ask - we also need to analyze the chart to see how far it is likely to go up and also how much of a loss we are willing to take to allow it to reach it's profit potential. The potential profit of a trade divided by the potential loss of trade is known as the Reward:Risk Ratio.
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NASDAQ Chart of the Day
Daily Trading Signals
RMIX got a huge upside break through key resistance at 7.40 with high volume, which is quite bullish. Look for continued strength from this stock above this resistance level.
Daily Trading Signals
NYSE Chart of the Day
Daily Trading Signals
EL took a large gap up this morning and continued steadily higher throughout the day. The index should remain highly strong above 45.00 going forward.
Daily Trading Signals
Daily Market Commentary
Updated Wednesday, 1/31 for Thursday's market.
Late-Day Rally...
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Updated Wednesday, 1/31 for Thursday's market.
| Key DOW Levels for 2/1 | |
| P | Above 12,700 |
| DN | Below 12,450 |
Late-Day Rally...
- Dow reverses sharply from yesterday's highs, drops steadily throughout the day. The index closed the day near the highs of the session with a solid 98 point gain and is now sitting at all-time highs above 12,600.
- The NASDAQ and S&P each pushed nicely higher from early lows today and now look bullish near-term. Look for potential continuation patterns to build out at highs ahead of the next key move.
Summary
The Dow ended the day with a nice rally through 12,600 today and is currently sitting at all-time highs. If the index can build out a continuation pattern above 12,600, we could see much more strength ahead. Otherwise, another wave of near-term selling is likely.
- The NASDAQ and S&P each pushed nicely higher from early lows today and now look bullish near-term. Look for potential continuation patterns to build out at highs ahead of the next key move.
Summary
The Dow ended the day with a nice rally through 12,600 today and is currently sitting at all-time highs. If the index can build out a continuation pattern above 12,600, we could see much more strength ahead. Otherwise, another wave of near-term selling is likely.
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Tuesday, January 30, 2007
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Technical Indicators
Rate of Change
Rate of Change
Read More...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.
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.
Quantum Swing Trader
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Trading Education Tutorial
Moving Averages and the Trend
Moving Averages Help Us Identify Trend Reversals
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Moving Averages and the Trend
Moving Averages Help Us Identify Trend Reversals
One of the old axioms of technical analysis is that 'the trend is your friend'. This holds true, as long as you trade in the direction of the trend. However, your 'friend' has two faces, and can turn on you to eliminate profits (and your friendship!). Trend reversals can occur at any time and one of the important skills a trader must possess is the ability to identify a reversal. It is easy to exit a position too early if we over-anticipate a trend reversal, and just as easy to watch our profits evaporate if we are too slow to exit the trade.
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NASDAQ Chart of the Day
Daily Trading Signals
FCEL got a solid upside move today through a clear upper trend line at 6.40, which is highly bullish. Look for more strength from this stock.
Daily Trading Signals
NYSE Chart of the Day
COT is winding up within the boundaries of a clear triangle pattern that could offer a solid breakout opportunity. Watch 14.75 up, and 13.80 down.
Daily Trading Signals
Daily Market Commentary
Updated Monday, 1/29 for Tuesday's market.
Winding Up...
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Updated Monday, 1/29 for Tuesday's market.
| Key DOW Levels for 1/30 | |
| P | Above 12,550 |
| DN | Below 12,475 |
Winding Up...
- Dow reverses sharply from yesterday's highs, drops steadily throughout the day. The index eventually sold off from the session's highs and ended the day within a large triangle range, as it awaits a potential breakout move.
- The NASDAQ and S&P each traded back and forth throughout the day, with the NASDAQ hold key lows to the Close. Watch the tech-heavy index closely, as a breakout from the current consolidation range could offer nice direction.
Summary
The Dow ended the day with a mild 4 point gain, but is clearly winding up within a very large triangle pattern. A breakout from this pattern could spark a move about the size of 190 points, which could offer a move of the same magnitude.
- The NASDAQ and S&P each traded back and forth throughout the day, with the NASDAQ hold key lows to the Close. Watch the tech-heavy index closely, as a breakout from the current consolidation range could offer nice direction.
Summary
The Dow ended the day with a mild 4 point gain, but is clearly winding up within a very large triangle pattern. A breakout from this pattern could spark a move about the size of 190 points, which could offer a move of the same magnitude.
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Monday, January 29, 2007
Trading Ideas & Picks
Trading Picks - Read More
QQQQ: The bears did push the index below the moving average, which is now acting as a area of short-term resistance. We'll continue to hold onto our short-term target near the 100 DMA until the bulls are able to push the index back above its 15-day moving average...
Trading Education Tutorial
Trading Ranges
Big Moves Occur Outside of the Range
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Trading Ranges
Big Moves Occur Outside of the Range
A trading range is basically a horizontal channel in which a security moves from the high and low of the channel for an extended amount of time. Obviously, the upper level of the range can be considered resistance and the lower level represents support. Trading within a range is possible, but it's the breakout from the range that provides the best opportunities.
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NASDAQ Chart of the Day
Daily Trading Signals
GOOG continues to wind up within the boundaries of a highly explosive triangle pattern. A breakout through 513.00 or 48.00 could spark a solid 60 point move.
Daily Trading Signals
NYSE Chart of the Day
IRF got a solid breakout through the top of a large triangle range via a big breakaway gap and high volume. Look for more strength from this stock.
Daily Trading Signals
Daily Market Commentary
Updated Friday, 1/26 for Monday's market.
Pop & Drop...
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Updated Friday, 1/26 for Monday's market.
| Key DOW Levels for 1/29 | |
| P | Above 12,650 |
| DN | Below 12,425 |
Pop & Drop...
- Dow sells off sharply from early momentum, bounces from lows. The index dropped off about 110 points and tested the key 12,450 zone before getting a solid bounce late in the day to close the session just beneath 12,500.
- The NASDAQ and S&P each sold off fairly aggressively today, but each held lows and bounced to the Close. Watch key support next week, as a test of these levels could be big.
Summary
The Dow closed the day with a nice bounce from the day's lows to end the session with just a modest loss after a bad start to the day. The index continues to look very 'toppy' in the Daily and 60 Minute Charts, which could indicate more weakness ahead.
- The NASDAQ and S&P each sold off fairly aggressively today, but each held lows and bounced to the Close. Watch key support next week, as a test of these levels could be big.
Summary
The Dow closed the day with a nice bounce from the day's lows to end the session with just a modest loss after a bad start to the day. The index continues to look very 'toppy' in the Daily and 60 Minute Charts, which could indicate more weakness ahead.
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