This is a follow up to the weekly chart just posted. Also referencing the Ed Carlson article on Trader Planet for another viewpoint: www.traderplanet.com Keep in mine price action has not confirmed a down turn, but the picture isn't pretty at the moment.
I'll post the Daily chart which paints a similar picture. Overall strength is waning, and bearish formation are developing in both weekly and daily charts. Nothing is confirmed yet by price action, however this article by Ed Carlson points to the SOX/SPX ratio and it's already broken it's H&S pattern as well. www.traderplanet.com Worth keeping an eye on.
VALE has been a tough stock to trade, as are many of the miners. The daily chart of VALE is showing a potential Inverse H&S bottom formation, and the weekly is showing a similar picture with a near equal measured move. Navigating this trade is up to the risk tolerance of the individual, but a decent 20% gain could be had in a couple months time. RSI is...
I posted a similar setup in CHK a few weeks ago, however that setup failed to materialize before any buy signal was triggered. A similar setup is in the works for CHK, however the strength of the move as seen by RSI isn't helping my confidence in a breakout. That said, my models pick this up as a potential scalper, and therefore I stick with it. Above 20.60...
This is showing a long and short projection for DXY. Nothing confirmed, but the setup is certainly there. H&S is likely forming, which is in line with the TLT chart I published earlier. Long into right shoulder formation and short upon completion of right shoulder. If DXY makes it above 83, setup is void.
TLT exhibiting a potential inverse H&S bottoming formation. Amazing how many contrary charts formation are out there, however I put more weight in directional movement based on bonds rather than equities. If blue trend line is broken, this setup will be null and void. If breakout above black neckline, this must hold as support (neckline is a little hairy, so...
This is an update from the previous AEM chart found here (). See chart notes for details.
Strength in the SPX weekly is diminishing which is not an immediate issue, but looks like it may be cause for concern later next year. The Monthly chart shows something similar. Longer term charts carry more weight, but it also means he timeframe for a bearish scenario to play out is longer. Shorter time frame trades for the coming months will be plentiful....
Friend of mine was praising his position in AGNC - nothing wrong with that as it's running higher, but I'm not much on gloating about unrealized gains. Anyway, did some analysis - see notes in chart. Nothing terrible just yet, but potential is there that a top is in or in process. Keeping an eye on it. Wouldn't short it as the yield is high. I'll revisit in a few weeks.
Check the notes in the chart. Currently at longer term resistance, but if through, nice trade for a few points.
CHK is shaping up for a move out of an ascending right triangle. Currently stalling at the 200 day MA which is coinciding with resistance. It's in the sweet spot for a break above the $21 area as it's coiled about 75% to the apex of the triangle. Indicators are strong, and the weekly chart is also showing a decision point where major support and resistance...
See notes in chart. Tweeted about this August 29. Overall the pattern is moving as expected. Any pullback to the "Green" support line would be a nice entry - ensure it holds before stepping in.
I didn't catch this trade as I wasn't able to watch the market late yesterday afternoon.. the perils of other responsibilities. Anyway, thought I'd post an example of an aggressive swing entry to participate in a rally similar to today's (we will have more, don't worry). Nice example of the EMA cross over's on heavy volume, RSI and %R strength and the MACD...
Though the S&P 500 and NASDAQ Monthly charts are showing early signs of a potential breakdown, the daily hasn't broken completely. We don't a confirmation from the charts on which way we are going near term, though the late day action makes me lean to a sell the news tomorrow - we will see. For those who follow gaps, here are the major NASX gaps from Fall 2011 to...
The monthly chart is setting up for an ominous outlook approaching. Nothing is confirmed yet, but longer term holding's should be looked at for potential exit signals. Swing and day trades should be fine. Keep an eye on it in case the worst develops, but I'm staying with the daily which say's we are ok for now.