Breakout
No, not a "loony" crazy breakout, a breakout in the Canadian dollar (also called the loonie!) The chart above is of the USD/CAD, so up on this chart is down for the CAD. (Chicago currency futures will be the inverse of this chart.) After a long consolidation
Breakout
Japan shows a clear pattern of higher lows holding into a ~9 month long resistance area. This is a pattern that often sets up a breakout, but in this case the pattern is on the weekly chart and could presage a significant advance above that resistance. The assumption is that
Anti
The "Anti" is a name coined by Linda Raschke (in her excellent book Street Smarts) for a trade that was originally defined by an oscillator pattern—when short term momentum pulls against (hence, "anti") longer-term momentum, the stage is set for a powerful snap in the
Chart of the Day
We have been short Gold in our daily research several times this year. The most recent short was initiated 9/23/13, but Gold has been a strong performer for us through much of the year. This recent selloff has the potential to lead to a feedback loop and spark
Breakout
Systematic traders have a perennial debate: how much or how little to intervene in your system's rules? There are a range of acceptable solutions, but the key is to be very consistent. If you will fiddle, then fiddle, but if you say you are a purely systematic trader,
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
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
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
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