QuantitativeExhaustion

QuantitativeExhaustion

Here is a look at the XLV Healthcare Select Sector SPDR weekly chart. What I see is a Bump and Run pattern nearing the last stage of it's run phase. This particular bump and run has a very steep angle, estimated about 50 to 60 degrees. I believe the pattern is nearing the last stage of the run and is ready to reverse slowly to the previous trend line, which is...

QuantitativeExhaustion

SPY, SPDR S&P 500 ETF, has formed a corrective wave and the sell-off has the form of an impulsive wave. I'm looking at Fibonacci and Woodie Pivots for support and resistance lines in this Elliott Wave impulse. I believe it is possible the SPY goes as high as 167.11 which is where the Woodie Resistance (3) and the .618 Fibonacci meet up. There is also a small...

QuantitativeExhaustion

As you can see an Apple chart a inverted head and shoulder pattern has formed. The measure breakout for Apple's inverted head and shoulder is 538. If the right shoulder breaks above the neckline sooner than the left shoulder 41 day duration, the breakout could reach as high as 560 before the end of July. Inverted Head and Shoulder Description A head and...

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Possible Head and Shoulder Top in development with SPDR S&P 500 ETF (SPY) on daily chart. We have all the Ingredients for a Head and Shoulders Top; Trend Reversal, Prior Trend, Right Shoulder, Neckline and Head. Now we need to see a retest of the neckline followed be a bounce to make a left shoulder. The reversal measurement if today were to peak near 162, the...

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Taking a look at the NYSE Composite old Support/Resistance area at 9678. This particular horizontal trend line has a strong confluence reading. Now the market has cleared many barriers, NYSE could draw to 9678 area very quickly. We also want to take a look at the NYSE new high and low areas. HIGN 500 readings are considered overbought and LOWN readings over...

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Here is an updated Elliott Wave count chart of the (SPY) SPDR S&P 500 ETF. Chart also compares VIX with Relative Strength to measured peaks and troughs.

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Looking at a Head and Shoulders Pattern. Whole Foods Market WFM Prior Trend since 2008 has been amazing, now looks to good to be true. First target is 76.33 and next target 64.00. High end grocery store chains have become saturated. Time to jump ship. @nmike found the H&S With little capital you could take a big risk and buy deep out-of-the-money long puts...

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Advanced Micro Devices AMD reports earnings after the market close on Thursday, April 18th 2013. CEO Rory Read has been making big deals happen for AMD. Last week AMD secured a deal to make chips for next years Microsoft MSFT XBOX. For those of you not interested in gaming, like me , what might interest you is the fact that Kinetic is developing in to more...

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Citibank C is the first to report bank earnings Monday April 15 before the market open. If you think bonds might have a chance to break higher and or you believe Citibank might scale down it's 2013 guidance, Friday would be a good time to short the market. If you think bonds are ready to break lower or Citigroup is going to beat analyst expectations, you should...

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Short US Dollar / Long Gold-Silver US Dollar has a complex head and shoulders pattern. The right shoulder is taking a long time to develop. The overall pattern is a multi-year pattern, so time length should have been expected. We should expect some downward pressure in the more recent weeks, followed by consolidation and a big drop once the original neckline is...

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Be the river they say when panning for gold and silver, or is that fishing? Well either way we are searching for a bottom for gold and silver. Here I illustrate where a bottoming could occur for either silver or gold. 1.618 retraces from tops and bottoms usually are good places to find your pot of gold.

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There is no easy answer for the European Union regarding Southern European Nations. The banks in Cyprus had grown fat on deposits of Russians, much of that money came from Russian mobsters using Cyprus to launder illegal funds. On top of that Cypriot Banks lent out far too much money, especially to Greek banks and companies: Their loans amounted to eight times the...

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Federal Reserve speaks tomorrow. Big day for both the bond and stock markets. This has been tug and war since the US stock market topped in 2007. A hint to which way the rope is going to drop will be tomorrow and in Round 15 a winner declared. However, there will most likely be a last minute third party stand-in for the final round, GOLD (see chart insert below)....

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...or not. This toothpaste tube is all but out of paste. One more squeeze and it's time to short. Everyone seems to think Colgate is the right fit for Buffett, but does Warren think that? www.forbes.com P/E is near 22 which is also unprecedented. With that kind of stock valuation you would think we are talking about a tech growth engine, i.e. Apple 10.31 or...

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Here is another stock that does not see these type of stock price moves ever. Just like Kellogg we have another historically low volatility (IV) stock that's going Parabolic. On my top 10 stocks to short. Forget about sell in May and go away, Sell in March and Go Bye-Bye.

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I took a double take at Kellogg K chart. From July the stock has made a parabolic move without a decent correction. Looking at the indicators we have divergence in RSI, Fisher and MACD. In fisher we see a double cat a @nmike favorite.

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From a quick Dow Transports DOWT scan, I can't find a more parabolic point move since 1992. It's great that the transports are running the markets to new heights. This means U.S. economy is recovering faster than the Federal Reserve anticipated. However, this might mean the Federal Reserve might have to end Quantitative Easing much sooner. This could lead to...

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Biggest Gainer over the past 12 years. Priceline.com one of the few companies to make it out of the .com bubble. Chart suggest we have a possible double top forming or a bearish wolfe wave. To proceed with the double top PCLN will have to take out the 1.618 fib resistance. If price fails to break 1.618, at $729, you will see a quick drop to the .786 fib...