Category Archives: Morning News

Potential Head And Shoulders Top Forming On The Dow Chart

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 »

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

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

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!”

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 »

The DOW : Monday’s Focus Was On Breaking Through Resistance – On Tuesday The Focus Is On Holding Support

Yesterday we took a look at the Dow Jones Industrial Average chart. The primary focus was on the trend line resistance level situated in the 26,426 area which is being reinforced by the horizontally tracking 200 day moving average. A strong open suggested that the Dow was set to break above resistance and potentially move… Read More »