Posted on May 21, 2009 by Adam
When trading conditions are tough, you can rely on gold stocks to get you through. The reasons why are fairly simple
To understand why, you need to look at the relationship between gold and equities. The role that gold plays in intermarket dynamics changes over time. It generally moves opposite to the US dollar, as investors [...]
Posted on May 20, 2009 by Adam
Stocks gave up early gains, led lower by financials and technology.
I think you have to follow the sectors in order to gain an edge right now. I read once that the sector a stock is in controls 50% of the price movement of the individual stock. With that in mind, you want to try and [...]
Posted on May 19, 2009 by Adam
The market traded sideways all day, bound between the 905-915 range. A ten point range! Snooze.
Stocks failed to make a directional move, and were mixed across the board. The VIX, on the other hand, paints a different picture. Breaking down below 30 today, volatility levels are the lowest they have been since before the panic [...]
Posted on May 18, 2009 by Adam
Markets rallied all day across the board. This is a great development for bulls, especially since we managed to close above the magic number of S&P 900.
I’m still a bit skeptical about this sharp rally today, as the longstanding upward trend in the S&P was broken last week. We still haven’t tested 875 to the [...]
Posted on May 15, 2009 by Adam
Stocks ended a down week on a low note, although the S&P managed to remain indecisive. Prices traded down to 878, but failed to test the all important 875 level.
Yesterday, the $BPSPX went on bear alert - which signals that more downside may be coming. After today, it is likely that the $BPNYA, the bigger [...]
Posted on May 15, 2009 by Adam
It’s no secret the world is heating up. Of course, some people would have you believe otherwise. As a technician, I thought I could help add some proof of the trend of higher temperatures.
I used historical temperature data to plot a chart of average temperature anomaly, that is, how hot the earth was vs. how [...]
Posted on May 14, 2009 by Adam
The S&P remains pegged between two important levels. 900 should serve as a resistance to the upside, and 875 will be the line in the sand for the bulls. Until either of those levels is broken, I don’t want to take a directional stance on this market.
The market traded higher today, but the trend that [...]
Posted on May 13, 2009 by Adam
Stocks finished the day near their lows on weaker than expected retail numbers. This markets the third consecutive down day. We haven’t seen that since the beginning of March.
Stocks, after breaking through 900, seem determined to test the 875 level, which it punched through after a lot of testing late last month. Continued weakness in [...]
Posted on May 12, 2009 by Adam
If you day trade futures, understanding how market profile works can be valuable knowledge. Even for swing traders, understanding how to read market profile can help you gain a competitive edge.
What is market profile?
A market profile is a convenient relationship between price and volume. A market profile is constructed by looking at all the prices [...]
Posted on May 8, 2009 by Adam
The marekt was up today. Who cares? The big story is the comeback of A-ROD! He’s going to swing the Yankees out of their recent slump, even without his juice.
As for the markets, I think you can tell how they reacted to the stress test news. Buyers were extremely aggressive all day. Tick readings were [...]
Be on the lookout for an extended pullback.