Potential Head And Shoulders Top Forming On The Dow Chart

By | September 18, 2020

The previous post looked at the possible formation of a bear flag on the NASDAQ Composite daily chart. It implied a decline that retraced 50% of the previous March/September rally range. Another bearish reversal formation is under construction and near completion on the Dow Jones Industrial Average chart. A classic head and shoulders pattern has… Read More »

The Nasdaq “Bear Flag” Projects A 50% Retracement Of The March/September Rally

By | September 17, 2020

Last week the NASDAQ Composite broke the long term trend line that has defined the six month March/September rally. Since then it has been trading in a narrow range below that uptrend line and around its 50 day moving average. The price action since the NAZ made its recent high and the consolidation after the… Read More »

The Financial Sector Could Be Poised To Out Perform The Broader Market

By | August 29, 2020

The financial sector has chronically under-performed the broader market over an extended period of time. That dynamic may be in the early stages of a transformation. Last week the S&P 500 Index returned to its high of the year. This week it has made incrementally new all-time highs. By contrast the financial sector, as represented… Read More »

This Pattern Is Why Bitcoin Could Rally Much Higher

By | August 15, 2020

(Back from a long vacation.) The price of Bitcoin has rallied right along with the stock market over the last several months. But Bitcoin has been engaged in a much more significant process over the last ten months. It has been forming a strong foundational base. The recent breakout from that base could propel the… Read More »

Six Stocks With Large Short Interest + Good Charts = Potential Covering Rallies

By | July 17, 2020

Here are six stocks with solid chart patterns, improving price momentum and money flow and they have large outstanding short positions. The implication is that if there are bullish chart pattern breakouts, the shorts will be forced to cover their positions. This would initiate short covering rallies in the stocks. Remember though, often times the… Read More »

The DOW – Bullish Breakout From a Moving Average Squeeze And There Is Plenty Of Upside

By | July 15, 2020

The Dow Jones Industrial Average ($DJIA) dropped below its 200 day moving average in early June. It’s been trading just below the horizontally trending 200 day average and more recently above a rising 50 day average. Over time this the area between the two averages compressed along with the Dow’s average true range and Bollinger… Read More »

The Volatility Index And The Anomaly At The 26 Level – “The line must drawn here! No further!”

By | July 14, 2020

The market got a scare in the last two hours of trading on Monday. There was a sharp drop in equity prices on news that some businesses in California were being closed again and of renewed US/China tensions in the East China sea. The broader market dropped sharply and the Volatility Index jumped closing the… Read More »

Have Interest Rates Bottomed? – Is It Time To Buy The TBT?

By | July 12, 2020

Interest rates have been moving lower and for a long time. If you were on a fixed income like a pension during this period you’re a happy person. The low interest rate environment produced little or no inflation. This preserved the buying power of your income over time. If, on the other hand, you bought… Read More »