Thursday, May 03, 2007

 

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

 
Pattern Cycles: Breakouts

Significant declines evolve into long bottoms characterized by failed rallies and retesting of prior lows. As new accumulation slowly shakes out the last crowd of losers, a stock's character changes. Prices push toward the top of key resistance. Short-term relative strength improves and the chart exhibits a series of bullish price bars with closing ticks near their highs. Finally the issue begins a steady march through the wall marked with past failures.

Stocks must overcome gravity to enter new uptrends. Value players build bases but can't supply the critical force needed to fuel rallies. Fortunately, the momentum crowd arrives just in time to fill this chore. As a stock slowly rises above resistance, greed rings a loud bell and these growth players jump in all at the same time
...

Read More...

 
Trading Education Tutorial
Courtesy of Nirvana Systems

Double Tops and Bottoms





Waiting for the Setup to Complete Results in Profits

There are various chart patterns that help us find good reversal candidates. Of the major reversal patterns, the double top or bottom is not only one of the most recognizable, but also one of the most predictive.

Read More...

 
NASDAQ Chart of the Day
Courtesy of Nirvana Systems




PWAV has formed a large inverted head-and-shoulders pattern at critical support at 4.80, which has held for five years. An upside break through the neck line (resistance) at 6.80 could spark a very nice rally in this stock.

Daily Trading Signals

 
NYSE Chart of the Day
Courtesy of Nirvana Systems




CBG has taken a big gap to the upside through the top of a large triangle pattern, which could spark key buying pressure ahead. If the stock can hold above the breakout point of 37.00, we could see a move toward highs of about 45.00.

Daily Trading Signals

 
Daily Market Commentary
Courtesy of Nirvana Systems

Updated Wednesday, 5/2 for Thursday's market.

Key DOW Levels for 5/3

UP

Above 13,300

DN

Below 13,025


Steady Advance...

- Dow rallies throughout session, holds gains to the Close. The index pulled back from the session's highs late in the day, but still managed to hang on to a nice 76 point gain for the day, which is another all-time record close. However, a potential head-and-shoulders pattern could halt current momentum.

- The NASDAQ and S&P each rallied out of the gate today, but held firmly at resistance, where potentially bearish patterns are now forming. Further overall strength is likely, but a pull-back could happen first.

Summary

The Dow ended the day with a nice gain today and is now holding above key resistance. The index remains highly bullish, but the formation of the intraday head-and-shoulders pattern could lead to a near-term retracement tomorrow.

Read More...

Wednesday, May 02, 2007

 
Recent Picks / Trading Ideas
Free Trading Videos - Swing Trading - Futures Trading - Forex Trading - April 2007
MA - Resting as it Creates a High Level Channel April 10
Plenty of rest is taking place on this prior big mover as it creates this high level channel ...
INAP - 200-day moving average support April 5
Several technical indicators are confirming the support and the Parabolic SAR indicator has recently triggered a buy. It will be interesting to see if the bulls start to step back in ...
Swing Trade of the Week April 5
CHKP: Stock ended a nice MA uptrend with a crossover down and is now coming off a countertrend move up to the Downtrending MAs. Look to establish a short at 22.64 or higher ...
Swing Trade of the Week March 29
WYNN: Stock ended a nice MA uptrend with a crossover down and is now coming off a countertrend move up to the Downtrending MAs. Look to establish a short at 96.74 or higher ...
General Dynamics Corp - Ascending channel March 29
GD: Stock has been trading within the confined range of an ascending channel. DMI have recently created a signal that is suggesting the bears are taking control of the momentum ...
Weekly Swing Ideas Report for 26th - March 30th March 26
Stock Picks - Long and Short Potential Swing Candidates ... SwingTracker Scans: Trading Window, Force Swings, Triangle, Revival and more ...
Intel Corp - MACD bullish crossover Mar 22
Stock has fond support at the influential $19 level. MACD has recently moved above its signal line suggesting that a move toward $20 is more probable than the move toward $18 ...
Monthly Market Recap February 1
The Macro weekly uptrend is still bullish, the uptrend is intact. The longer term trend is up, but the market is very susceptible for possible near term corrections. ...
A Year of Transition Jan 4
Gann Global Financial - This year should be a transitional with 2 major financial events ...

 
Trading Education Tutorial

Elliott Wave Theory

In the 1930s, Ralph Nelson Elliott found that the markets exhibited certain repeated patterns. His primary research was with stock market data for the Dow Jones Industrial Average. This research identified patterns or waves that recur in the markets. Very simply, in the direction of the trend, expect five waves. Any corrections against the trend are in three waves. Three wave corrections are lettered as "a, b, c." These patterns can be seen in long-term as well as in short-term charts. Ideally, smaller patterns can be identified within bigger patterns. In this sense, Elliott Waves are like a piece of broccoli, where the smaller piece, if broken off from the bigger piece, does, in fact, look like the big piece. This information (about smaller patterns fitting into bigger patterns), coupled with the Fibonacci relationships between the waves, offers the trader a level of anticipation and/or prediction when searching for and identifying trading opportunities with solid reward/risk ratios.

There have been many theories about the origin and the meaning of the patterns that Elliott discovered, including human behavior and harmony in nature. These rules, though, as applied to technical analysis of the markets (stocks, commodities, futures, etc.), can be very useful regardless of their meaning and origin...

Read More...

 
Trading Education Tutorial
Courtesy of Nirvana Systems

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
Courtesy of Nirvana Systems





XRAY took a big upside break through the top of a clear resistance level at 33.60, which was also the neck line of a bullish, inverted head-and-shoulders pattern. Watch for more strength out of this stock.

Daily Trading Signals

 
NYSE Chart of the Day
Courtesy of Nirvana Systems





RCL has built out a large triangle pattern and is winding up toward the apex of the range. A breakout from this pattern could spark a move of about 7 points. Watch 42.75 up, and 40.75 down for a likely breakout move.

Daily Trading Signals

 
Daily Market Commentary
Courtesy of Nirvana Systems

Updated Tuesday, 5/1 for Wednesday's market.

Key DOW Levels for 5/2

UP

Above 13,175

DN

Below 13,025


Late-Day Reversal...

- Dow bounces off key 13,050 level twice, rallies to the Close. The index closed the day with 73 point gain and continues to wind up within a large consolidation range that we will watch closely.

- The NASDAQ and S&P pulled back from today's lows after finding support and are now building out the framework for a potential range at lows. Look for more dancing around today's support and prior highs, as the indexes continue to determine their next move.

Summary

The Dow closed the day higher after rallying from early lows in a determined manner. The index continues to be within striking distance of setting new all-time highs despite yesterday's decline. Look for more range development from 13,040 to 13,165 before another key breakout move is seen.

Read More...

Tuesday, May 01, 2007

 
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.

Read More...

 
Trading Education Tutorial
Courtesy of Nirvana Systems

Trendline Breaks






When is a Trend Truly Broken?

The importance of trendlines cannot be overstated when it comes to technical analysis. We are told to trade with the primary trend, exit when the trend reverses, enter on trend reversals, and so on. Trends are easy enough to identify, but when is a trend actually broken?

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NASDAQ Chart of the Day
Courtesy of Nirvana Systems




SIGM has broken the neck line of a bearish head-and-shoulders pattern at 25.00, which indicates big weakness ahead. Watch for a drop back toward the 19.50 zone, and possibly lower.

Daily Trading Signals

 
NYSE Chart of the Day
Courtesy of Nirvana Systems





MFE looks like it may be forming a bearish volume climax after maxing out above 34.00. If the stock cannot rise back above 33.50, we could see a steady decline back toward the gap open.

Daily Trading Signals

Monday, April 30, 2007

 
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. Many technicians have noted that markets tend to reverse or consolidate once they reach one of these ratio levels (measured from the distance of the previous trends reversal). They can used as entry levels, exit levels and even as a money management tool.

Read More...

 
Technical Indicators

Standard Deviation Channel

The Standard Deviation Channel is two lines plotted parallel to the Linear Regression Trendline. These lines are distanced by n number of standard deviations above and below the LRT.

Over time, prices generally move from one extreme to another. As market participants become overly optimistic, prices are driven up at an unsustainable rate. Likewise, when market participants are overly pessimistic, prices move down at an unsustainable rate.

Given this, markets tend to have an equilibrium pricing point. While the Linear Regression Trendline can help determine where such a point lies, it is the Standard Deviation Channel that is helpful in determining where the extremes fall...

Read More...

 
Daily Stock Picks

Bottoming -

Apr 27 for Apr 30:
PACT RSYS

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


Oversold Stocks
-

Apr 27 for Apr 30:
CCBL FWRD SBNY


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


Volume Pop
-

Apr 27 for Apr 30:
CHTR GNVC NGEN TUNE FALC LAVA QDEL SWIR


(Volume Pop With High ADX & RSI)


More... Stock Picks Page #1

 
Trading Ideas & Picks

Weekly Swing Ideas Report for April 30th - May 4th

Stock Picks - Long and Short Potential Swing Candidates ... SwingTracker Scans: Trading Window, Force Swings (AMD Advanced Micro Dev, RTH Retail HOLDRs Tr Dep Receipt, LTD Limited Brands, JWN Nordstrom, Inc, ASML ASML Holding NV), Triangle (IYR iShares DJ US R/E Index Tr, ATI Allegheny Technologies, RF Regions Financial, MPEL Melco PBL Entertainment ADS, PLD ProLogis), Revival, Reversals, Breakouts (WMI Waste Management, MA MasterCard IncA, AW Allied Waste Ind, SOHU Sohu.com Inc, JEF Jefferies Group), and more...

Trading Ideas - Read More

 
Trading Ideas & Picks

The QQQQ Report for April 30th - May 4th - Positive Earnings Fuel a Move Higher

QQQQ: Monday's bullish move beyond the resistance set the tone for the remainder of the week as traders priced in better-than-expected earnings. Many traders will watch for the previous resistance to become an area of support in the event of a pullback...

Trading Picks - Read More

 
Daily Market Commentary
Courtesy of Nirvana Systems

Updated Friday, 4/27 for Monday's market.

Key DOW Levels for 4/30

UP

Above 13,200

DN

Below 13,050


Still Holding...

- Dow trades mostly sideways, remains within steep uptrend. The index set another new all-time intraday high of 13,147 and continues to remain in the highly bullish uptrend that is three weeks long.

- The NASDAQ and S&P each traded sideways throughout the session today, further developing their respective consolidation ranges. Look for a breakout from these ranges for early direction Monday.

Summary

The Dow closed the day quietly within the boundaries of a tight range that continues to form at highs from 13,060 to 13,150, which indicates more overall strength. However, the index could be in dire need of a pull-back first. Watch 13,050 closely.

Read More...

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