Wednesday, February 14, 2007

 
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.

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NYSE Chart of the Day




HIMX has gotten a big upside break through the top of a clear triangle pattern via a breakaway gap and increased volume, which is quite bullish. Look for this stock to remain bullish toward a price target of about 7.25.

Daily Trading Signals

 
NYSE Chart of the Day




CSX has broken through the clear 38.30 resistance level and could be headed much higher. Look for more strength so long as this stock remains above 38.00.

Daily Trading Signals

 
Daily Market Commentary

Updated Tuesday, 2/13 for Wednesday's market.

Key DOW Levels for 2/14

UP

Above 12,700

DN

Below 12,525


Break & Rally...

- Dow breaks 12,600 to upside, rallies to triple-digit gains. The index was able to hold above the 12,600 zone throughout the session and eventually closed near the day's highs with a 102 point gain, which is clearly the best gain of the month.

- The NASDAQ and S&P each opened the session with big strength today, and look poised for another big move. Watch the major triangle pattern in the NASDAQ for key, guiding direction.

Summary

The Dow closed out a solid session near the day's highs, but is once again approaching major resistance at 12,700, which turned the index away in big fashion earlier in the month. Look for the index to build out above 12,600, as it gears up for a potential test of 12,700.

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Tuesday, February 13, 2007

 
Daily Stock Picks

Bottoming -

Feb 9 for Feb 12:
ADAT CWTR SMMX

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


Oversold Stocks
-

Feb 9 for Feb 12:
SFUN WMGI

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


Volume Pop
-

Feb 9 for Feb 12:
CEGE CYTR GENR ONSM TUTS VLTS ZANE

(Volume Pop With High ADX & RSI)


More... Stock Picks Page #1

 

Instant Profits @Profits Run

Fibonacci retracement lines video

Most traders have run across Fibonacci retracement lines in their search for trading knowledge.

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*"Instant Profits" Fibonacci lines*



This brand new, 6 minute trading video clearly shows you the benefits of Fibonacci lines and how they can be used in your trading.

You can watch the video here:

*Fibonacci retracement lines*

Remember, a trading indicator by itself is just a trading indicator, it's NOT a trading method.


PS - After you watch the video, you'll have a chance to learn more about a multimedia trading method that features the tight integration of Fibonacci lines. Here's the complimentary video link again: *"Instant Profits" Fibonacci lines*


 
Trading Education Tutorial

Breakaway Gaps





Pressure Helps Identify Movers

Gaps occur when there is a dramatic change in market conditions. They can occur at the beginning of a trading session (i.e. most NASDAQ stocks) or even during the session itself. There are three types of gaps that are of interest to us when we analyze charts: breakaway, measured (also known as continuation) and exhaustion gaps. Today we will discuss the breakaway gap.

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NASDAQ Chart of the Day




ONXX got a big breakaway gap to the upside through a very long term upper trend line at 18.00 with big volume behind it. This downtrend could turn into a big uptrend if this stock remains above 18.00.

Daily Trading Signals

 
NYSE Chart of the Day




BMC has taken a solid breakaway gap to the downside through a clear lower trend line at 34.00. This gap could lead to much more selling ahead. Watch for more weakness so long as it stays beneath 34.00.

Daily Trading Signals

 
Daily Market Commentary

Updated Monday, 2/12 for Tuesday's market.

Key DOW Levels for 2/13

UP

Above 12,700

DN

Below 12,525


Slow Decline...

- Dow opens session quietly, eventually drops over 100 points from the day's highs. The index is now holding around the key 12,550 zone, which is a fulcrum in the 60 Minute Charts, and could continue pushing lower in the medium term.

- The NASDAQ and S&P each held lows, as they begin potential continuation patterns. Look for range movement at lows ahead of more selling down the road.

Summary

The Dow continues to trade near the overall lows of the recent decline, which is highly bearish. Look for continued overall weakness beneath the 12,625 level, especially if 12,525 gives way.

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Monday, February 12, 2007

 
Technical Indicators

TRIX - Triple Exponential Moving Average

The Triple Exponential Moving Average (TRIX) is an oscillator used to identify oversold and overbought markets as well as a momentum indicator. For use as an oscillator look for a positive value to indicate an overbought market and a negative value indicate an oversold market. When TRIX is used as a momentum indicator, a positive value suggests increasing momentum just as a negative value suggests momentum is decreasing. Some believe that the TRIX crossing above the zero line is a buy signal and a closing below the zero line is a sell signal. Divergence between price and TRIX can also indicate significant turning points in the market.

Two advantages of TRIX over other trend indicators is its filtration of market noise and a tendency to be a leading rather than a lagging indicator. By using triple exponential smoothing, "insignificant" cycles are filtered out. It can lead a market because it measures the difference between each bar's smoothed version of the price information. When used as a leading indicator, TRIX is best used in conjunction with another market-timing indicator so as to reduce false signals...

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Trading Ideas & Picks

The QQQQ Report for February 12th - February 16th

QQQQ: Relative Strength Index (RSI) indicator's negative divergence continues to be a factor that is causing many traders to question the conviction of the longer-term uptrend. We believe that the 100 DMA is still an adequate short-term target as the QQQQ continues its consolidation...

Trading Picks - Read More

 
Trading Ideas & Picks

Weekly Swing Ideas Report for February 12th - February 16th

Stock Picks - Long and Short Potential Swing Candidates ... SwingTracker Scans: Trading Window, Force Swings (GLW,Corning Inc, LLY,Lilly (Eli), TEX,Terex Corp, MHS,Medco Health Solutions, TXU,TXU Corp), Triangle (SLE,Sara Lee Corp, AN,AutoNation Inc, TZOO,Travelzoo Inc), Revival, Reversals (CWTR,Coldwater Creek, ZQK,Quiksilver, Inc), and more...

Trading Ideas - Read More

 
Trading Education Tutorial

Fibonacci Retracement Levels





Using Retracement Levels in Your Trading

Fibonacci Retracement Levels are one of the most powerful (and underused) tools available to traders. These measurements are of great use with any market that is reasonably liquid..

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NASDAQ Chart of the Day




UNTD got a big downside break through the lower trend line at 13.70 via a breakaway gap. Look for more downside pressure ahead.

Daily Trading Signals

 
NYSE Chart of the Day




COT has formed a bullish saucer pattern at the lows of the recent decline and is now breaking this range to the upside at 14.70. Watch for continued strength to the upside.

Daily Trading Signals

 
Daily Market Commentary

Updated Friday, 2/9 for Monday's market.

Key DOW Levels for 2/12

P

Above 12,700

DN

Below 12,525


Big Sell-Off...

- Dow opens session quietly, eventually drops over 100 points from the day's highs. The index got a nice bounce to the Close and settled the day with a 57 point loss, but much more selling could be ahead.

- The NASDAQ and S&P each pushed lower early in the day, but led nice upside reversals to the Close. Look for the indexes to continue to build out at highs ahead of the next key breakout move.

Summary

The Dow closed the day with a modest bounce higher, but that was only a fraction of the decline that preceded it. The index could be on the verge of a much bigger sell-off ahead, especially if the it takes out 12,525 with force.

Read More...

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