Tag Archive for 'candlesticks'

Plop, pop, oh what a relief

Published on March 29, 2011, 9:53 pm in Trading. Closed Tags: , , , , .

Even with bearish economic reports on consumer confidence and housing, the bulls brushed off their pootie, realigned themselves and marched up the charts!

And look at that VIX:

VIX Mar 30 2011

Except for that pop up 2 weeks ago it’s been in a channel forever. Last Thursday Friday and Monday formed a nice bullish Morningstar candle pattern, but it needed confirmation today…which fizzled quickly! The VIX remains oversold and looking for a way up the chart.

Job numbers start coming out tomorrow with the ADP and Challenger reports, Jobless Claims on Thursday and BLS on Friday. Now we’ll see just what kind of job issues we had in March….could spring us to new highs or continue that correction we started last week. Oh what fun we’re having!

Crazy!

Published on February 9, 2011, 9:59 pm in Opinions and Trading. Closed Tags: , , , , .

So we had a negative A/D line, a negative A/D volume, negative S&P, RUT and Nasdaq, all with a positive Dow. Is that a divergence or what? Irrational exhuberance…big time! If you’re a candlestick watcher…Hanging Man galore!

CSCO and ATVI should help bring the indexes down on Thursday, at least the Nasdaq for sure. Other bad reactions include AKAM, ALL, AMKR, TQNT, TEX. Remember, it’s not the reports or the news that matter….it’s the reaction.

But, there’s always a but, futures at the moment are up, even though Asian markets are down. Crazy?

“You’re already starting to see some unrest in some countries as prices go higher. It’s going to cause a lot more social unrest as prices go higher around the world.

You will see some governments topple. Is it the end of the world? I don’t think so. It wasn’t in the 70s. But there will be more political instability everywhere.” – Jim Rogers

Gee, it sure felt like Monday

Published on July 6, 2010, 10:03 pm in Charts and Trading. Closed Tags: , , , .

Last week, the indexes fell on average 5%. Discretionary consumer stocks, industrials, and financials were hit hardest, which pretty much put the S&P’s 50-day moving average to cross below the 200-day moving average….or the “famous” Death-Cross. Whenever a shorter moving average crosses below a longer moving average, well, the bear is back.

Last night it looked like the bear had it well under control, but by this morning, the bulls were back. For the first couple of hours, it even looked like we would have a trend-day-up. Oil led the stock markets up. But, the bulls couldn’t get their act together and began to waiver at noon, and spent the rest of the day snorting: What the $%@&*!

The S&P ended closing right where it opened, creating another doji day or another indecisive day.

Remember that at the close on Wednesday some inverse, or bearish, ETFs will undergo a 5-to-1 reverse split: ERY, DRV, TZA, and TYP. That is, if you own 500 shares of TZA Wednesday night, you will own 100 shares of TZA at a higher price…specifically 5 times the closing price….on Thursday morning.

So watch it! Happy trading :!:

Let’s ride a bull

Published on June 27, 2010, 10:55 pm in Charts, Opinions and Trading. Closed Tags: , , , .

The news from the G20 meeting sounds encouraging and oil looks like it wishes to be a leader. But the weekly S&P chart put in an ugly bearish engulfing pattern.

The daily chart though, looks like it poked out a bottom on Friday and may want to try the green side of the market for at least a few days.

The week prior to a holiday is usually bullish, so we have that seasonal advantage working for the bulls. Next Monday the markets will be closed for the 4th of July holiday, but this Friday morning we have the always fun and wild monthly employment report. So the markets will be fun again this week. Be careful and happy trading!

Groundhog Day?

Published on June 17, 2010, 9:51 pm in Trading. Closed Tags: , , , , .

Today was just like yesterday! Yes, boring, but still showing confusion and consolidation, and again another doji. Candlesticks say we need a confirmation candle to tell us which way the market will go…but all we got was a “duh!” Which way do we go?

Oil got slapped around today, but considering that move from $69.50 to $78 in just 2 weeks, it too was due for some consolidation. Gold had a great day, breaking out through the May highs. The US dollar had a down day but may be looking for a move up. If it goes up the stock market goes crap. :cry:

I got a few coins out of TZA in the early morning, but then just stood still for the markets to do whatever they wanted to do. I’m still sitting long and cash….and the long part has a hairline trigger!

Quadruple-witching options expiration day on Friday! And no economic data reports nor any earnings reports may make for a dull opex. The action probably comes back next week.

Thinking about Monday

Published on May 22, 2010, 9:06 pm in Trading. Closed Tags: .

Doing my scans after the market closed on Friday, I found 1380 bullish engulfing patterns vs 52 bearish engulfing patterns today. Not a bad day. Now, does this strength continue Monday? I think so…and maybe a bit more than just one day.

Some weekend reading:
Was the so-called flash crash a fluke, or not?.

Timmy’s got our back? Geithner tries to reassure China over US deficit.

The markets have relationship issues. Familiar Patterns.

Happy Hour Is Over: Fox Business Network Cancels Dayside Business Program. I knew it couldn’t last long after Rebecca got married and changed to that gothic black hair style. :twisted:

Got Oil?

Published on May 16, 2010, 7:55 pm in Opinions and Trading. Closed Tags: , , , , , , , .

With oil so much in the news, I would think that it should be hitting bottom soon…say, $70 maybe? I don’t trade the crude oil futures, so like I said a couple days ago, I’ve added USO UCO into the watchlist….I even nibbled a bit on UCO already. It looks like $10 has been a resistance/support area before.

Here’s a note on USO: Is This Oil ETF Ready For a Bounce? USO

After doing my scans this evening I see a lot of “evening star” setups, which generally means those particular stocks are going down. On the other side, I also found a greater number of hammers, looking for a reversal up on those stocks. Of course, as in all candlesticks signals, we need confirmation in the next candle, no matter which direction you think they may go.

Futures this evening are looking tired with ES down 6 points and YM down 60 points, and oil futures just about where they closed Friday. I went into the weekend on the long side, but in very small positions of UCO SSO and C. Remember, for the past year a down Friday is followed by an up Monday. :mrgreen:

I got some additional reading material for you today:
Impossible Wall Street Fixes

Fear of a Double Dip Could Cause One

The Huge Difference Between The “Flash Crash” And The Crash Of ’87

5 things we still don’t know about the market plunge

Happy trading and I’ll see you in the market!