Chart of the Day
* Yesterday's play was to not fade a break, up or down. This turned out to be correct, as the market gapped lower on the open, and did not look back throughout the day—ending in a volatile downtrend day for the entire session. * Assume bearish mode for the
Chart of the Day
This post is the first in a series I will be extending for a week or two, focusing on short-term and intraday trading. Each day, I will be publishing a chart of the day that focuses on the best short-term ideas and setups I see in the US stock index
Breakout
I've been writing about this for quite a while, tweeting about it, pointing out the relative strength in smaller cap names, constructive sector flows, volatility compression that could support a strong trend thrust, and a number of other factors--US stock indexes are well set up for an upside
Chart of the Day
Markets normally move in alternating waves of with-trend impulse moves interspersed with lower volatility pullbacks. This is a reliable trend pattern, and, in fact, is enough to base a trading plan on. Typically, a market will make a sharp move in one direction, will consolidate somewhere near the extreme of
Chart of the Day
I thought this was a good time to take a look at current market conditions in US stocks. This is certainly a time when risk, emotions, and volatility are elevated, but it is also a market that is still within "normal parameters". Probabilities favor a snapback, but there
Chart of the Day
This is an important time in global markets. Equities are at a potentially important inflection, and short term noise may be misleading many players. Currencies have had some fantastic moves, but now there is the danger of snapbacks over the next few weeks. Precious metals, petroleum, grains? There is opportunity,
Chart of the Day
[dc]R[/dc]elative strength is an important trading concept, and there are a lot of ways to define, monitor, and trade these relationships. Looking at the sector relative strength within the US stock market gives a deeper understanding of money flows and psychological support for a bigger rally. One
Chart of the Day
Here are a few trading ideas. Some may be immediately executable; some may need to go on a watchlist. In most cases, these are consolidation plays and could be entered on short term breakouts (e.g., breakout of previous day's high, if looking to buy). There's
Breakout
I have written before about volatility compression, which is the tendency for markets to make cleaner, more directional moves after the volatility has contracted on the same timeframe. Triangles and/or inside bars often mark areas of volatility compression; this is one way that a simple chart pattern can point
Chart of the Day
By way of history, we have been bearish on Gold for quite some time in the research I write daily for Waverly Advisors, and we hold a short that was established 9/23/13. There is potential for a dramatic pattern failure here, so this is absolutely not a time
Chart of the Day
Yesterday's weak closes in major stock indexes do threaten trend integrity, at least on the intermediate term: though fairly small on a nominal basis, these moves were large on a volatility-adjusted basis and have the potential to lead to further downside. (Bears will also find support for their
Anti
This chart shows a common context for the Anti pattern: following an overextension of an established trend (A), the market makes a sharp counter-trend move (B), and then pulls back in a complacent pullback (C). This sets up a condition that favors the possibility of another trend leg, roughly proportional