It looks like the rally in bonds is finally done because it had 3 legs up and is forming a potential M pattern. The obvious target is back down into liquidity at the 200 sma. What this means for the market is that it should have a strong rally to finish off January in a positive note and a positive tone for the rest of the year. This final move in bonds...
Intermarket Study for 2014
Utilities - XLU - and Health Care - XLV - Outperformed in 2014, and these two sectors saw the biggest % gains later in the year. Health Care and Utilities are considered economically insensitive sectors, and tend to outperform when the market is at risk of a pullback or a sideways markets. Historically, economically-sensitive sectors...
The over all market remains strong. The NFP number is out on Friday and could pop us into the 2100 area. For now the path of least resistance is up. Be smart with your risk.
In this post I'd like to share some of the best ways I know of to stay on the right side of the long-term trend. I will stick to technical indicators on price action and the S&P 500, or this discussion could go on way too long. I employ the monthly chart for long-term timing; its perspective is broad enough to show the big picture yet nimble enough to capture the...
I think a test of the 2000 level in china is going to happen quite soon. It seems as if the only buying pressure coming off of the last selloff was from short covering, which is not bullish. Natural buying pressure seems low, but this may change at lower prices. Support at 2150 is strong, but may break soon; the next significant support level is around 2000 yuan....
With its IPO in May 2012 it is difficult to know what price action it might have formed. However, based on the price action since low in September 2012, it is fairly clear that we have ABC retracement rally which is likely to complete soon and in 80-82 price zone which could it self be a larger Wave (B) suggesting that we could have major Wave (C) to commence...
DAX is now for second day under the very important 8900 support zone area.
If DAX in the next day not return to 8900 zone , we can confirm the bearish
outlook.
Summarized :
bear:
DAX break his long trendline 2011
DAX starting making lower lows
The very strong 8900 supportzone turning in heavy resistance zone.
negative for bear :
oversold RSI
If we have a false...
This is a simple MACD analysis, to try an forecast a topping pattern before a crash, The safest and high probability trade for a short occurs when the MACD has a negative divergence highlighted in red circle and yellow divergence line. Since it has broken the uptrend support and it is coming back to test it close to the 0.236 fib retracement level. that would be...
To me this looks like BTC was leading the recent breakout; Gold and Silver following roughly a day later. Have to check if this happened in the past, but this could make BTC a 'market maker' of some sort, or at least an indicator - since arguably BTC traders might be more flexible and quicker to adapt.
Many feel the market has been heavily suppressed over the past few months, and whilst I would agree, I think it is time for the bull to regain power. If only for a short while.
We have many bullish divergences building on the higher time frames now. MACD divergences on the 3-day and 1-day, along with clear RSI divergences too. This would give us a lovely pop in...
I believe, fundamentally, that blackberry is undervalued at its current share price and this is why. Initially that had a hard time keeping up with the competition, and lets face it the Z10 and the Playbook were both major flops. But a business can, and should use its failures to its advantage, and use it to tweak their business model which is what BB seems to be...
Consider shorting the Nasdaq100 which is highly represented by technology stocks. Even if you don't believe there is a severe correction around the corner, tech stocks are extremely expensive. A move above the asset bubble trend is telling me there may be a pullback to the middle of the linear regression line - minimum. Consider selling one the price move back...
So here we are, S&P 500 at 2,000, bears have good arguments and bulls have good arguments as well. As of right now, I have no idea where equities are going, I'll let the market tell me.
But here is a quick trade idea I got today. By the way, please correct me if there is something wrong in my analysis as this is my first real market-neutral trade that does not...
Of course, the projected future waves are pure speculation and I'm not expecting any patterns to repeat themselves exactly. There do exist, however, 7-year and 13-year cycles in the market that deserve consideration and further research, considering the similarities I believe to be showing quite clearly in this comparison. I have made an effort to simplify this...
The SPY has been consolidating over the past few days, but technicals indicate it may push into new highs soon. Keep an eye out for rejection at 198.20, which might indicate a triple top and pending reversal, but any clearance would be a safe entry point to go long. Careful shorting on the rejection, since it could be a 0.5% gap fill.
