Posted on February 25, 2009 by Adam
Good Morning Traders,
Yesterday’s sharp rally came as no surprise to me, given the grossly oversold nature of most broader market indicators. As such, I was able to reap the rewards by positioning myself slightly to the bullish side.
After the rally, we have inched our way north from extreme oversold levels, but an enormous amount of [...]
Posted on February 23, 2009 by Adam
I’ve been watching the following pattern develop for a long time now - almost a year. I’m talking about the massive double top that’s been forming in the S&P. This is a pattern that’s been forming since 1997! If we close below support, we will have confirmed this horrible pattern.
Based on the price pattern measuring [...]
Posted on February 23, 2009 by Adam
Good morning traders,
As I’m assessing the market this morning, I keep noticing how deeply oversold we are. As we sit at the lows, not doing much, we are approaching relative lows in the NYSE McClellan Oscillator.
Like all oscillators, the McClellan Oscillators moves from overbought to oversold. The more deeply oversold we get, the more likely [...]
Posted on February 19, 2009 by Adam
I’m not superstitious - I promise. But I can’t help but notice something strange that’s going on with the S&P 500. I have noticed something in the charts that has me very interested.
Looking at a point and figure chart of the S&P, we can see that it went on a sell signal last week, which [...]
Posted on February 18, 2009 by Adam
I returned to my computer this morning to see how my trades had fared in my absence. Wow! Dow down 300 points! S&P below 800!
That’s kind of a big deal. We’ve broken down pretty hard, putting the NYSE Bullish Percent on bear confirmed, the most bearish scenario out there. I have no doubt we will [...]
Posted on February 13, 2009 by Adam
Good morning traders,
Action seems like it’s found its way into the market. In case you missed it, a pretty bearish day ended with a monster rally in stocks. Even as the S&P 500 and the Dow both went on sell signals, bullish percent indicators still read bull confirmed, as bullish as it gets.
I think we [...]
Posted on February 12, 2009 by Adam
The stock market has been teetering at a pivotal level over the last week. Wave after wave of hopeful buyers entered the market, only to see their efforts thwarted by the onslaught of the weakening economy.
The financial crisis is far from over - the panic that ensued in late 2008 may be over, but we [...]
Posted on February 12, 2009 by Adam
As I have said before, if we exceed 815 in the S&P, we will be on a sell signal.
Well, it’s happened. If there was a time to get bearish, it’s now.
As always, remember to stay balanced. Don’t go out and buy 50 put contracts and forget about upside risk. I’m in three positions now - [...]
Posted on February 11, 2009 by Adam
Well traders,
Nothing happened today - no significant price action. Stocks made a bit of progress, led by the financials, on what appeared to be a short covering rally after yesterday’s bear raid.
My opinion doesn’t really change here. If you look at the chart I put up yesterday, you will see that we are at an [...]
Posted on February 11, 2009 by Adam
Good Morning Traders,
If you haven’t wished the market luck this morning, you’re either sadistic or short. Either way, you can still enjoy the musical stylings of Toto.
If we can hold the line (***musical interlude***), that is, stay above S&P 815, then it looks like investors are buying the pullback we saw yesterday.
In my personal opinion, [...]
Be on the lookout for an extended pullback.