Stock Charts On Wednesday’s Watch List
These charts reflect stocks in uptrends with clearly defined trend lines that represent good stop-loss reference points:
Powell’s Cat: The Market In Superposition
Federal Reserve Chairpersons never reveal very much about the Board’s economic policy between formal board meetings. Chairman Powell may break that tradition when he speaks at 1:00 PM today. The markets will wait and whatever they are given in the way of new, or regurgitated information, they will attempt to use to further reiforce their… Read More »
Medial Devices and Instruments ETF Is Breaking Out
The medical devices and scientific instrument and research companies are showing strength this month. Several in the space like Danaher (DHR) and EXACT Sciences (EXAS) look like they are ready to break out. One way to take advantage of the broad sector strength is to trade the iShares US Medical Devices ETF (IHI). The daily… Read More »
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 »
Friday’s Market Reversal In Context
On Friday the DJIA went from being down 400 points to closing up 100 points. The broad based reversal formed what looked like hammer candles on the daily charts of all the indices. The hammer candle is usually a bullish indication, but context and confirmation are required before price patterns or indicators can be traded.… 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 »
We Have Arrived – Time For the Market to Retreat?
The S&P 500 index is back to its September 2018 high. It has managed to retrace all of that late year decline. This means that traders who held on and rode out the volatility of the last five months are back to even. The adroit traders who sold near the highs last year and were… Read More »
Financial Sector ETF Breakout Projects An 18% Rally
A nearly seven month inverse head and shoulders pattern has formed on the Financial Select Sector SPDR Fund (XLF) weekly chart. This bottoming process began in October last year and was completed by a neckline breakout this month. The left shoulder formed after the XLF made a low in October in the $25 area, and… Read More »