General Comments
[dc]C[/dc]harts can be a powerful tool for market analysis and trading. At a glance, they can provide a quick overview of important price movements, can highlight supply/demand imbalances, and can suggest where repeatable tendencies in the market might be. Furthermore, because they are a visual tool,
Chart of the Day
The daily chart of the DJ Europe Stock Index shows a two-legged pullback that could be read as a complex consolidation. This is typically a strongly bullish pattern, and we see similar structures in many other global indexes. Yesterday's large standard deviation up close is a breakout on
General Comments
This is repost of an article I wrote last year (2012). I would have updated the numbers, but it wasn't really necessary as last December was flat enough that it did not materially alter the stats. This is the time of the year when we will start hearing
General Comments
I was on Chuck Jaffe's MoneyLife show last Friday discussing the longer-term outlook for stocks in 2014. (The file is an 8 minute audio file.) The subject of biases is worth discussing, and I'll plan a blog post on it soon. It is important that whatever
Chart of the Day
Though there is a reasonably strong seasonal tendency for stocks to rally into the end of the year, consider the dangers in one-way trades. Many people know this tendency (the famed Santa Clause rally), and are probably banking on it, so there is risk of at outsized decline if markets
General Comments
Reader Tom sent me a note: "I am hoping you can help me. I set a goal for myself in 2013 that I would study the Level 2 Screen. I set a goal and I kept it. I was at the screen nearly every day the market was open.
Breakout
[dc]I[/dc]f you are a discretionary trader, you might also consider using some trading systems. In my published research, I publish three types of trades: purely discretionary trades (on both weekly and daily timeframes), a pullback system, and a longer-term trend following system. These systems were carefully selected
Chart of the Day
Daily S&P 500 Cash Index with SigmaSpikes® I would like to share a note that I published in my daily research this morning: Yesterday's downward closes in major stock indexes deserve some attention; as our readers know, we have long held a strongly bullish bias, and
Chart of the Day
[dc]T[/dc]hough perhaps not properly a "chart" of the day, I wanted to share one of the several stock screens that we publish in my Waverly Advisors research. This screen highlights stocks that are consolidating with low volatility near the high (or low) of their 52
Climax
Double, double toil and trouble Fire burn, and cauldron bubble. -Shakespeare [dc]B[/dc]ubbles seem to be the theme of the day. Headlines like "Why Stocks Are Undoubtedly Experiencing a Massive Bubble", "Nobel Prize economist warns of U.S. stock market bubble", and "Shiller
Chart of the Day
The chart of the 30 Year Treasury futures shows an important formation. First, we are short Treasuries, (in my published research) and have been for a while; the trade has performed moderately well, though we haven't really seen any sharp downside momentum. That's ok—some trades
Chart of the Day
The media, both major and social, seems to be filled with people proclaiming that stocks are in a bubble. Bubbles do occur, but the current market shows no signs of a bubble. Bubbles have, historically, been associated with specific types of trend accelerations and volatility conditions, and have ended in