Category Archives: Market Overview

Investor Concern Replacing Complacency – Reversal Pattern On The Volatility Chart

The iPath Short-Term Futures ETN (VXX) tracks an index with exposure to futures contracts on the CBOE Volatility Index with average 1-month maturity. It resets daily so traders should use it as a short term and not a long term trading vehicle. That said, a bullish morningstar reversal pattern has developed on the VXX weekly… Read More »

Prepare For The Bond Implosion Now With This ETF

Bond yields continue to reflect a risk-off environment. It has been that way for a long time but when that docile dynamic starts to reverse, it could accelerate quickly. Traders should be prepared to profit from the machinations of the “bond vigilantes,” and higher yields. Jeffrey Gundlach, of DoubleLine Capital has been warning about corporate… Read More »

This Pattern Has Marked Highs In The Russell 2000 Since October 2018 — Another Just Formed

All the significant highs that were made on the Russell 2000 (RUT) chart, going back to October 2018 have been signaled by an eveningstar candle pattern. Most readers know what a candlestick pattern is and what it suggests about trader sentiment. The eveningstar is a three day reversal pattern that starts with a large up-day… Read More »

Caterpillar Shares At A Critical Inflection Point

Caterpillar (CAT) is a component of the Dow Jones Industrial Average (DJIA) and, as such, is a good measure of the condition of the traditional industrial sector. It’s machinery is used in mining, agriculture, infrastructure rebuilding, and many other areas of heavy construction. Another aspect of Caterpillar’s importance is as a measure of the world… Read More »