Risk of a major trendline break is more psychologically needed to flush out the weak holders of AAPL shares over the coming days, weeks and months. We could see a push into the 390-400 area in this rally, but at that point it would provide an exceptionally low risk versus high reward ratio that would be wonderful to see. At this level 385+ there is...
AZO is down on the day while the overall market is up 3%. Over the long haul, AZO has tremendously outperformed the market, however, with recent chunks of insider sales just above current prices and with this stock at fairly lofty valuation levels, perhaps there is a chance that this stock gets tested to see if buyers lurk underneath current prices. $300-$270...
UNTOUCHED CHART FROM Nov 9th: AMZN almost reached the 2nd target level at 180 in last week's decline. Since futures are pointing sharply higher on Sunday evening, I felt that a comment was appropriate. A very strong holiday sales season is underway as shoppers continue to migrate to the internet AND appear to be getting over the blues by spending some hard...
NUAN is the provider of the Siri assistant to the Apple iPhone and broke out around the time of the release of the G4. Now it is in a retesting phase and is a lower-risk entry here. Notice how volume is lower on the decline than on the rally, signifying profit-taking by traders, and resting by long term investors. As time develops and the fundamentals confirm...
Silver is down from last week's sell signal (going under $33). This is a decent place to cover, especially ahead of any news coming out of the Deficit Cutting Committee AND ahead of Thanksgiving. This is a decent profit for a short period of time and many other, more vulnerable charts are breaking, like AMZN and AAPL, that are more interesting to me. This is...
Here are the raw basics on this strategy (see red type): #1. Find two stocks that correlate #2. Decide on some rules in advance so you don't hang onto losers. #3. Keep risk on any trade to 1% of your portfolio or less. If you don't know how then I can create some charts to show you how. I highlighted in BLUE CIRCLES when there were periods when you could have...
There is a clearly visible HEAD & SHOULDERS BOTTOM pattern in Devon Energy Corp (DVN, nyse). Note the classic signs of a bottom with price and volume patterns. #1. The highest volume of selling is in the left shoulder, which is the longest time ago. #2. Much less selling pressure in the head, again indicating a reduction in selling pressure. #3. Right...
Apple and Amazon..... It is hard to tell which one is which... in this daily chart going back over 2 1/2 years! This chart would make you think twice about whether anyone is doing any thinking at all about how to value these stocks OR are investors and mutual fund managers just poring money into these stocks blindly, owning them just because they have to own them...
From the chart I published here on October 14th () highlighting the historical rhythm of the SPY and TLT and how the markets were positioned to move from TLT back to SPY, the SPY rallied 8% in the following 2 weeks while the TLT fell 5% for a net performance gain of 13%. Since the end of October, that performance disappeared, and is now building again to a 4% spread.
I have marked up the chart for TLT in the last hour to point out the key levels and position of the market. It is somewhat rare to get a market that gaps up like TLT did at the end of October and then just sits there in a tight range. I believe it is a sign that the market is tired and that there are very few buyers up here and it appears as if the short-sellers...
I am merely pointing out the base formation here and the resistance area overhead in AIG. You can see it is right in the middle between the bottom of the base near $22 (down $1.80) and the resistance at $26 (up $2.20). So, I don't have a recommendation at this time but I will if it gets either closer to the bottom of the base or higher near resistance. The...
Amazon is breaking down from a bear flag pattern which occurred with falling volume. The high volume decline in October found support at the gap around the $200 level. Next support levels at $190 and $180. Amazon is down with a down market, but it was weak the past few days when the overall market was strong. AMZN is so expensive, like MSFT, DELL, KO, AMGN and...
I think this is a good time to cover short positions established the Friday before when the news was EUPHORIC AND when the market was right up into significant overhead resistance. Now we are down on news of Italy and exaggerated (perhaps) fears and the market is down to a key level of support where we saw UPSIDE GAPS and UPSIDE REVERSALS a few weeks ago. Plus,...
Reverse position and Go Short, risk a rally to $30.5. This rally is overbought dramatically and I expect to see the largest reaction to this price level than we have seen in the entire rally. There is strong enough resistance here from the buyers who took on positions on the way down who will want to get out at break-even now that ANR has returned to near the...
Silver has had a rebound from deeply oversold back in late September. On Friday, September 23 Silver had fallen from $39/oz down to $30/oz in just two days. The next day, Monday, Sep 26, SLV opened UNDER $28 and has not fallen below $28 since then. The high of the rebound is slightly over $34. However, this rally is weaker than you would expect given all of...
Refer to the chart and previous NUAN chart.
Corn is not a liquid etf, but it is a good reference for the price of Corn Futures as they use a basket of futures in their portfolio. I view the larger picture as a broadening top formation, which occurs after a long advance. I think it is useful to look at markets that move differently than the stock market, just to round out your perspective. Often, high...
Greetings: Whenever I find any pattern that seems to repeat itself too many times, that is when I get suspicious and begin to imagine that the market will do something different. What I see here in AMZN is a continuous pattern of "FALSE BREAKS" of previous reaction lows which makes traders think that every break is a buying opportunity. AMZN just had such a...