🖼 Daily Technical Picture 📈 ➤ It was looking good for my Bullish position until the final hour of trading. Then things went sour. Prices reversed course. That Was Not Good. ➤ It was not good for two reasons: ➀ My fear of being taken out by choppy conditions has materialised. Exit signals were given. That meant I had to cut most of my positions at market close....
🖼 Daily Technical Picture 📈 ➤ Good Monday, we experienced some extraordinary market action last week. Beginning with the BTC/Crypto plunge and ended the week with a massive bullish move in equities. Not to be outdone was the sharp reversal in the USD. The USD reversal is a big deal. ➤ Equities extended the rally off the yearly lows accelerating past key...
🖼 Daily Technical Picture 📈 ➤ What an extraordinary day! The Bulls have run riot. The Bears have been crushed like myself. ➤ Price has charged through the top resistance level and looks unlikely to stop there with so much momentum. There's really not much more to be said. You can see the empty space till the next resistance level on the chart. ➤ The saviour for...
🖼 Daily Technical Picture 📈 ➤ I'm borrowing that quote from the TV Series Billions. The market is NOT UNCERTAIN that things are UNCERTAIN. There's one thing markets don't like and that is uncertainty. ➤ The results of the mid-term elections in the US are UNCERTAIN. I'm no political expert but if Republicans win the House and Democrats win the Senate or with some...
🖼 Daily Technical Picture 📈 ➤ DJIA, the blue chip equity index, continues to outpace all other US indices. It is quite remarkable. Never have I seen such outperformance. It is TELLING US something... ➤ I think the first signs of a longer bearish period is being shown by the price action. The recent move forming the higher low is looking laboured. It doesn't have...
🖼 Daily Technical Picture 📈 ➤ S&P500 was able to climb above the resistance/support level at the end of the days trade. This has set a higher low above the yearly low on 13th Oct. We now have the first set of higher highs and higher lows => an uptrend in the classical technical definition. 📈 ➤ While the Bulls may be rejoicing on such an occasion, we must note...
🖼 Daily Technical Picture 📈 ➤ Welcome to another week of snakes and ladders. Before we look at the technicals, I urge you to read my thought piece about The Paradigm Shift if you haven't done so. IMHO, this will alter the behaviour of markets going forward. A much more active approach rather than a passive buy and hold approach is required. ➤ Let's now look at...
🖼 Daily Technical Picture 📈 ➤ Price has reached the next level of support after sharp falls. Now we will see the real battle between the Bulls and the Bears. ➤ The Bullish case is quite simple. Price needs to be supported here to form a higher low. The classic definition of a bull trend is the formation of a set of higher highs and higher lows. ➤ The Bears have...
🖼 Daily Technical Picture 📈 ➤ If you ever doubted the effectiveness/importance of support and resistance levels/zones, I think that has been put to bed by today's price action in the S&P500 equity index. ➤ All you need is to look at the price action in the past few days. Price has tried valiantly on multiple occasions to overcome the resistance zone. Today saw...
STOXX 50 Monthly Forecast Movements 1-30 November 2022 We can see that for this month, the implied volatility is around 7.3%, increasing from 7.18% of last month. This is currently placing us in the 60th percentile according to ATR and 91th according to VDAX. Based on this percentile calculation, on average the monthly movement for the candle(from open of the...
🖼 Daily Technical Picture 📈 ➤ Yesterday in Australia was the running of the 162nd world-renowned horse race, the "Race That Stops the Nation" - The Melbourne Cup. The blue-ribbon event is a 3200m long-distance race and each horse is handicapped by age, weight and "quality". In theory, due to the handicap, each horse has a fair chance of winning. This year's...
🖼 Daily Technical Picture 📈 ➤ Welcome to November. Just two months to go prior to the end of a long but so far successful year. However, there will be a lot of action and many trading opportunities still to come. ➤ Except maybe not for a day or two. As if on queue we have a pause on proceedings. This is to be expected both from a fundamental and technical...
🖼 Daily Technical Picture 📈 ➤ S&P500 leapt higher to the upper resistance zone highlighted in pink. This is probably the best opportunity for price to take a pause or reverse downwards. A clear break above the zone will give the Bulls impetus to push higher as there is little to no resistance left until the top of the double-bottom formation as explored in a...
🖼 Daily Technical Picture 📈 ➤ One thing I like about trading indices is that I don't have to deal with individual stock risk. A reasonably diversified portfolio will do the trick too. We have seen some major moves in the price of mega cap stocks this earnings season. Meta, Netflix, Amazon to just name a few. Overall, at the index level, they were pretty much...
🖼 Daily Technical Picture 📈 ➤ Price pushed higher once more but was unable to hold most of the gains. More often than not, this bearish looking daily reversal candle is not bearish at all. Buyers tend to bid it back higher. ➤ Price is approaching the next line of resistance. If successful in overcoming that hurdle, the next hurdle is some distance away at 417 on...
🖼 Daily Technical Picture 📈 ➤ Price pushed strongly higher through resistance. After-hours trading is showing weakness due to earnings releases from Google & MSFT. ➤ With today's action, it is probably right to say the market structure has formed a double bottom formation (one could argue a small double bottom also occured with left/right bottom on 30 Sep/13...
🖼 Daily Technical Picture 📈 ➤ I'm not a nerdy Star Trek fan but it seems the phrase about resistance is appropriate here. For the S&P500, price is challenging the upper ceiling of the range that has unfolded from the start of October. ➤ A higher high has developed due to the temporary intrusion above the resistance level. This is a basic requirement to confirm a...
🖼 Daily Technical Picture 📈 ➤ If the chart is looking congested, that's because it is. This is due to the whipsawing, range bound, choppy conditions. I think I've ran out of other descriptions...coiling maybe. I'm pretty sure market-makers are having a good time of it and perhaps day traders too...although the intra-day volatility and news flow, it may be hard to...