Look at the history of these two stocks going back to 2011. They are identical in performance and yet AAP reports its earnings FIRST and the stock tanked 30 points or 15% last month. Autozone reports on Dec 8th and could face a similar fate as AAP since they are in the same business. Lately, new car sales have taken off to the upside and at some point...
As soon as DD turn up relative to SPY on the day highlighted it was the time to put on the trade. Even if you waited until it went over the 10-day average of the ratio, you would have gotten in with very good risk/reward. You would have had 1% drawdown on the first day's open, then as much as a 19% gain from there to today's high, or a 16% return to the last...
Another tool in the tool box: pairs trading. What is it? It is the trading of closely correlated underlyings at points of unusual divergence and operates on the assumption that the pairs will eventually revert to the historic correlation. GLD and SLV are closely correlated pairs. On the chart below, you'll see that, for the vast majority of the time, GLD and...
Heres my verdict on usdcad.. What do you guys think? Comment below.
EJ may have just put in a 3rd touch on the weekly decending trend line. The month of June EJ retraced to the 61.8% fib, will it hold? Last week produced a hammer bar and this week may end as a bearish engulfing with a possible CTL break. Could we see the lows of 126.000 and further down to 119.540?
The ratio of LUV/JBLU is turning up after a long slide of 50% from 3.00 down to 1.50 where it is breaking a 5+ month downtrend in the past two days. If you look at the pure price chart overlay of the two stocks, they oscillate back and forth over time and looking back one year (in this chart) you can see that LUV is lagging a bit lately and JBLU is ahead of...
This is purely technical as there still alot of confusion surrounding this pair b/c of everything going on with Greecel. The 4hr Chart is showing downside selling momentum and I am playing that selling pressure on the hourly chart. Expected Price Target is around 1.0890
Reasons 1: Rend circles indicate obvious resistance Reason 2: (Uptrend Entry) buying at support Reason 3: Trend line support *Also uptrend bias*
Throughout this entire year, USDCAD has been rallying which can confirmed on the larger timeframes such as monthly, weekly and daily. I'm basing this trade based off of that momentum and on a simple trend-contination setup. As you can see, price has been consolidating this past week and along with all the momentum n volume today coming because of greece, Im...
Alot of people have mixed views on the EURUSD right now mainly due to the confusion on the daily chart but both the Monthly and Weekly is clearing showing some potential downward selling pressure exists. For that reason, along with all the stuff going on with Greece and the EU right now, I believe the daily chart is finally lining up to this view on the short...
Here we see a butterfly pattern on the Nzd/ USD charts. the pattern has completed in the negative deviation of the last 100 moves. According to my strategy, if a bullish harmonic completes in the negative deviation area, it is likely that the market will rally back up into the positive deviation. The only thing to worry about here, is that over the last 200 moves,...
Here we see a sloppy bat pattern that decided to rally before completion. I believe the market got "close enough" to call it and make the trade anyways. I have placed my entry at the highest low of the pattern, just because i like the way it works out with the risk to reward ratio. Since we know that we will always place our limit at the 1.618 extension of the...
ALL CURRENCY PAIRS IN WHICH THE USD IS THE DENOMINATOR HAVE BEEN FOLLOWING A SIMILAR ARC SHAPE SINCE THE 2009 RECESSION. AS WE CAN SEE HERE, JPYUSD, CADUSD HAVE REACHED THEIR PREVIOUS SUPPORT AREAS. ONE CURRENCY PAIR THAT HASNT REACHED ITS PREVIOUS LOW IS THE AUDUSD. ALL MARKETS WORK TOGETHER, THEREFORE I BELIEVE THIS PAIR IS LAGGING COMPARED TO IS RELATIVES....
USDCHF throughout febuary has been pretty bullish but there are key resistance ahead that could lead into short swing trades
I make one fast analysis for EURGBP on monthly chart
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...
Look at the remarkable action around the KEY HIDDEN LEVELS in BP over the past 10 months - There have been multiple tests of the key support lines that provided ideal and low risk entries on pull-backs. Subscribe to "Key Hidden Levels" in the "Marketplace Add-Ons" section of "Indicators" . I'm looking to get long against support down here - I will post my...
There is a big divide here between the performance of the overall market and the performance of KO, Coca-Cola. The way to set up this trade is to go long KO and sell short an equivalent $-amount of SPY shares. Over time, I think that KO will start to outperform the market and this trade will make a profit. If they both go up, we need KO to do better than the...