Am I the only one worried about this? Big divergence between the market rally and percentage of stocks participating in it. This is what the end of 2021 looked like. Another interesting fact: The % of S&P 500 stocks outperforming the index over the prior 1-year period hit a record low last month at 24%. This is the lowest reading since at least 1994.
Description: In the chart above I have provided a semi-macro analysis of SPY that compares ongoing market rally and past rallies within the range of 420 & 360 Points. Points: 1. Price Action is fast approaching 420 Resistance that has been indicative of a turn around for past 4 rallies that failed to break the 420 LEVEL. 2. First 2 rallies under the 420...
The main focus is on setups and scan outcome, that will provide viable opportunities. Market Structure : Duration bearish market (stocks move in tandem, occasional oversold rallies) Primary Indicator : Green (bullish continuation and bearish reversals are favorable) Secondary Indicator : Breadth thrust 12 Jan / Countermove attempt 18 Jan. Current MMFI:...
The main focus is on setups and scan outcome, that will provide viable opportunities. Market Structure : Duration bearish market (stocks move in tandem, occasional oversold rallies). Primary Indicator : Green (bullish continuation and bearish reversals are favorable). Secondary Indicator : Breadth thrust 12 Jan / Countermove attempt 18 Jan. Current MMFI:...
The main focus is on setups and scan outcome, that will provide viable opportunities. Market Structure: Duration bearish market (stocks move in tandem, occasional oversold rallies). Primary Indicator : Green (bullish continuation and bearish reversals are favorable). Secondary Indicator : Breadth thrust 12 Jan / Countermove attempt 18 Jan. Current MMFI =...
Index : Duration bearish market (stocks move in tandem, occasional oversold rallies). Primary Indicator : Green (bullish continuation and bearish reversals are favorable). Secondary Indicator : Rare bullish breadth thrust 12 Jan. MMFI >72 (overbought or bullish acceleration in market turn). Countermove attempt 18 Jan. MR10 : SPY (-4 None) / QQQ (21 bullish...
You can clearly see that Energy has been the leader, and is in fact the only reason why ES isn't below 3600 right now. Consumer discretionary has taken quite a beating all year, likely due to higher input costs. Worth noting is that consumer staples appears to now be joining consumer discretionary in this downtrend. Utilities are behaving as the sector should be...
I recently updated my piece defining oversold and overbought conditions using MMFI or the percentage of stocks trading above their 50-day moving averages (DMAs). Here is the key text from that post: Above the 50, AT50, is overbought above 70% Above the 50, AT50, is oversold below 20% The Technicals of Converting from Above the 40 to Above the 50 Converting from...
Description CWEB has been working it down from its ATH since FEB of this year, and has gotten stopped up in the congestion pattern. I have been watching it to pick a direction to enter a position and it looks like it finally has broken to the downside. I have been using Long Puts in all my short positions because I do not want to cap my downside potential to...
Description BA has been working this Descending Triangle from its post-covid crash high around 278. There was one false breakout to the upside on 15NOV, which I traded, related idea linked. Descending Triangles are bearish in nature, and the implied move carries BA down to 137. Intermediate supports are at 194, 179 and eventually 144.5. The immense amount of...
Description UBER began its bear market after the break in the major trendline July. It has now broken through major support established from the ascending triangle that was built in MAR - NOV timeframe of 20' and was also tested in SEP of 21'. The break through 38 is the signal for the entry, and also the stop loss for the position. Using long puts to leave the...
Description TMUS began its bear market following the major trendline break in August. It has now broken through major support at 108.5 established SEP - OCT of 20'. The break through 108.5 is the signal for the entry, and also the stop loss for the position. Using long puts to leave the downside open. The level of the VIX right now is my primary concern in...
Description DUK has been working this patter that looks a lot like a head and shoulders, missing some volume indications. If so, the neckline has been broken here at 97. As always, most patterns are not confirmed until they are already over. The break through 97 is the signal for the entry, and also the stop loss for the position. Using long puts to leave the...
Top charts are the S&P, Nasdaq and Russell stocks above the 50DMA, below is the indicies themselves. Notice the divergences. The amount of stocks above the 50 are declining while prices moved higher. May lead to lower prices. Just something to keep an eye on until it gets itself worked out.
Breadth indicator % SP500 STOCKS ABOVE 200DMA reaches the 50% level. Level that previously have acted like a solid support and has marked bottoms. CBOE P/C RATIO AND SPX P/C RATIO have reached levels where markets find bottoms. "Buy when there is blood on the street" - they say Market is overpesimistic and algos have sold quickly on the TW news. When little...
$SPY - with its consistent grind for the month of April, we have finally found ourselves approaching ATH (All time highs) from back in October 18'. All indicators illustrating market breadth is exhausted and due for a pullback. With earnings and volatility arising in the majority of S&P names, we will be mindful of both directions the market can take. For healthy...
$SPY - still not seeing the strength I wanted to see in my watch-list last week. This is especially true in the smaller caps. Pre-Market gains are consistently getting faded off in the morning, making it tough for market open traders to see follow through on their momentum based gapper setups. Some points for me going into the new week: - Wait 10-minutes after...
$SPY - our $283 level of resistance finally broke over with the market busting over and gapping up this week. Spy currently sitting at $288.26 at time of post. Highs of market are at $293.85. 7th green day in a row, constant gap ups making it hard to get day trades with market breadth sucked out before market opens. In individual names, I have been take about 30%...