The continuous drop in Long Term Interest Rates in 2019 as measured by the drop in 10 Year Bond $TNX Rates merit's considerable caution, and continues to be of growing daily concern. From a high yield of 3.25 % in 2018, when growth assumptions were in full throttle, in the new administration, the yield on the 10 Year has continued to drop off the chart this...
Dow Jone Industrial Average shows a Clear "Ascending Triangle" Pattern on the Monthly Chart. I have done my best to illuminate the chart pattern here. Now let's just say for overwhelming contrary opinion, that the current decline off of the All Time Dow High of 27398, reached on July 16,2019, was a simple Cup and Handle Pattern inside the overall larger...
S+P 500 Futures MESU gapped down on Sunday evening in turn nullifying last weeks bullish late breakout "Above the Triangle". This kind of technical breakdown back into the pattern simply conflicts the longer term uptrend ( See Chart) One key feature of trading patterns like this is the continual "chop," the back and forth moves inside the larger price...
3 Day Holiday Weekend's in the US have traditionally shown a strong seasonal bias to the upside,based on historical analysis. One place to look for that bias this week can be found with the S+P 500 "Micro" Futures Contract for Sept ,MESU which has had consecutive day rallies this week from the Sunday nigh lows at 2810 which has brought price urgently back to...
S+P 500 powerfully reestablished itself to the upside today as overnight news that China wanted to relax the tariff war gave the market the immediate momentum it needed, and the market seized on that news in trading today, closing near the highs of the day. Here's the crux of the matter as I see it tonight. Today's sharp upside breakout back above 2900, heading...
What a wild and crazy 24 hours it has been in the financial market. For those who had the stamina, to go all night, S+P Futures opened Sunday night sharply down, continuing on Friday's sharp break down thru 2900 However, in the middle of the night, US time when all those shorts, who had bought up all those put options on Friday could smell blood in the...
S+P 500 Chart, interpreted in the 100 Range Format, ( Shown Here ) clearly defines the potential downside price risk in the market after Friday's surprisingly sharp renewed initiation breakdown of 2900. My own interpretation of the move is quite simple. Bullish Trader's were caught "red handed ",.. on the wrong side of the market on Friday. Bullish crowd...
This is simple and to the point. S+P 500 Chart Daily Chart showed a sharp snap back move yesterday to 2940, 'which exhausted itself right at triangle pattern Resistance. Tuning out all the loud hyperpole and drumbeat chatter about the supposed bullish implications of another rate cut, and how the Fed chairman might allude to that context in his remarks today in...
It may seem obvious to most traders yet it seems for too many trader's it's not. I am sometimes asked my opinion about an investment that I know little about. Did you see what happened in soybeans today? Why arn't you using the precious metals as a hedge in case the whole thing blows up ? What about that $800 move in bitcoin yesterday ? Not meaning to feign...
S+P 500, with the strong breakout rally back above 2900 on Monday, now seems destined to rally back up to parallel trend line resistance at 2965, to set up a potential "End Game" for this fall. Breadth, or the number of stocks participating in this new rally in the last two trading days has exceeded 400 stocks to the upside each day, out of 500 in the S+P...
The CRB Index of Major Commodities TRJEFFCRB , is breaking down once again, in a potential Head and Shoulder's Reversal Pattern down to extremely important major support. As seen here on the Monthly CRB Chart, commodity prices as measured by the CRB Index are down a whopping 50 %,..,since 2011 ! With most market observer's looking to the plunge in interest...
Plus Therapeautic's PSTV has been granted Phase 1 Approval from the FDA for their proposed lung cancer drug "Doce Plus", and has also been invited to seek a new "drug application" from the FDA in Phase 2 Trials. What was the market's reaction to this news ? PSTV rose over $10 on Friday to Close at 14.44 up 272 % in one single trading day, on massive volume...
As drawn and shown here, the S+P 500 has ending the week inside a paradyme downward sloping triangle with price found neatly in the now tightening coil part of the apex triangle To say that the ultimate resolution of the pattern could go either way,is perhaps as "genuine""as I can be right now. There may be those who will correctly "guess" the outcome and...
Shake Shack, one of the absolute strongest stocks in the stock market continues this week on it's explosive breakout move towards $100.00 a share. I recommended this stock last weekend to you, when it was $89.00 It should be disclosed that I own this stock and follow it on a 1 minute chart throughout the trading day. I can tell you is that this stock is under...
The Double Bottom Low at S+P 2825 today, appears to have successfully retested the important support low at 2822, that I wrote to you about last time, and thus opens the possibility of a rally back up towards 2900. With the VIX above 20, volatility is such that retest moves that might take days, are being accomplished instead in hours, and minutes. Things are...
As a simple Contrary Indicator, the Put/Call Ratio reveals trader sentiment, and can be used as a confirming contrary indicator, to buttress market future direction Right now the number of puts being bought for either speculation or hedging is rising, heading back up towards the Dec 2018 and April 2019 put peaks, which corresponded in major price bottoms in the...
The downside risk at the moment concerns the S+P 500 Weekly Chart, and the possibility of an extremely bearish Weekly Reversal. That technical bearish event occurs if price closes this week below last weeks low at 2822 after trading above it's high this week at 2943 The stock market will be fixated on 2822 Support by Friday, if not sooner. Long's should use...
Trader's are often put out to pasture making just one simple mistake. They hold position overnight. Yesterday's melt up in the S+P 500 to 2940 Resistance, has been immediately followed with a "melt down" the following morning. Why ? The in the know types are justifying this mornings sharp market selloff, by pointing the the "Inverted Yield Curve " overnight,...