The Dow is at a technical resistance level with a strong support level beneath the most recent run. When technical lines are very precise, it means most of the trading is technical, from short-term professional traders or longer-term fundamentalists with technical backgrounds. When the smart money is trading, it tends to make the trend more sustainable. At...
This bottoming pattern shows retests of the lows and how, over time, the lows of the retests start to rise. This tends to be a footprint of Dark Pools quietly accumulating over time. CRM has recently added Artificial Intelligence to its software to promote and sell more of its customer management software solutions to mid-sized businesses.
What happened today on the earnings announcement by PEP? Pro traders took profits against the retail crowd's buying on the news headlines that suggested an earnings "beat" for Q2. The retail buying causes the gap up at open, which is a prime cue to take profits on swing trades. This was what we call a pre-earnings run. The earnings results don't matter as much...
This young company benefited greatly from the pandemic but like all of the some 100+ companies that had huge revenues in 2020 - 2021, it was not sustainable due to the artificial inflation of stock prices via stimulus checks. Since the stimulus was a manipulation of the monetary system and the financial markets, there is no way any firm could manage the situation....
Controlled accumulation, a likely Dark Pool buy zone, developing for AMC. Friday had an uptick in volume. Compression patterns can have an explosive momentum move on the breakout. The last run out of a base went for 17 points.
Stocks that are falling rapidly often have the illusion that they will never stop falling. The panic that settles into the mindset of an investor who is watching his or her profits and capital erode overnight can overwhelm a stock’s price action. So for a brief time, the stock can behave outside of what the chart patterns would suggest was reasonable. But the...
The bottom formation is confirmed with rising Accumulation/Distribution and a nice, controlled base at the low. This is evidence of a Dark Pool Buy Zone, aka accumulation zone, where bargain hunting has occurred. But a bottom formation is a sideways pattern first, before it becomes a sustained uptrend. Resistance overhead is strong, so swing traders should be...
Compressions patterns are an important one to watch for in sideways action like a bottom formation. These form as buyers gain dominance over sellers. I'd like a tighter consolidation to develop at the current resistance for lower risk for entry on the breakout.
The "neckline" of the bottom after the market collapse of 2020 is very strong support as the selling at this juncture was a panic mode due to the pandemic economic lockdown. Stocks collapsed beyond fundamental levels at that time. This support level is going to thwart downside action for many stocks near this area. This kind of pattern warns of the impending...
If you're position or swing trading, it is a MUST to study weekly charts to confirm: 1. IF a bottom is developing 2. WHERE the bottom will complete ...to plan trades with strong reward/risk ratios. For example, let's take a look at EGLX, which had a gap up at open on its earnings release: 1. Note that today's gap up is from a lower low in the...
It may be difficult to be optimistic about the future at this time, but it's the BEST time to be on the lookout for Dark Pool Buy Zones in bottom formations. When it's all doom and gloom is when the largest buy-side institutions are accumulating bargain-priced stocks, acquiring their huge lots of shares as the last of the small-lot sellers capitulate....
LSPD is going to report lower quarterly revenues than last month in next week's earnings results, but its stock is in a sympathy move upward with the rest of the market bounce today. This is a prime example of the need to wait for confirmation of a bottom developing. As always, one up day is not a reversal. It may be the start of a bottom formation, but bottoms...
Well, right after data center infrastructure stock SWCH announced solid 1st quarter earnings results, we get an announcement that it's going private. DBRG and IFM Investors are taking it private for $11 billion. Shareholders will get $34.25 per share on the transaction. The price action gapped up to around that level and it will stay in this range until the...
Technical Analysis should be used for Risk Analysis, not just for deciding if and when to buy whatever it is you want to trade, whether it's stocks, crypto, forex, indexes, ETFs, REITs, mutual funds, etc. When you know the technical patterns that point to higher risk, aka sellers gaining traction, you can get out of long positions before the retail crowd and its...
One way to hedge a high inflation rate is to invest in REITs. Dividends can help offset some of your higher costs. This is touted all over at this time, but don't throw darts at random REITs. And to be honest, chances are your small fund manager could probably use your guidance if you're well-educated on the markets. The same due diligence is required for any...
AMD reports after the close today and is expected to have strong revenues over last quarter. The chart patterns suggest some Pro Traders setting up ahead of the report. The question is how far can it rise on the retail reaction to the report? Where are the sellers? See the red lines. 124 is the strongest resistance for the short-term trend, but there are...
RDBX had HFT action out of the bottom where there was a clear Dark Pool buy zone. It's moving into resistance from the low of the topping formation around 10 where short-term Pro Traders have begun taking profits. Retail traders need to learn to take the cue of the professional side using what TechniTrader calls "Relational Technical Analysis." When you learn...
Some traders try to watch Level 2 data to discern when the large-lot orders come through to get an idea of when the big institutions are accumulating in the Dark Pools, but you really don’t need that. Plus, whether that’s accurate is questionable since Dark Pool transactions are reported way after they were transacted. “Dark Pool buy zones” is a term I coined...