Disney (DIS) shares spent the four years between 2015 and 2019 consolidating in a triangular range. That range narrowed from $30 at its widest, to $15 at its most compressed. In April this year Disney broke out. The breakout can be seen on the weekly chart. The long consolidation period formed a triangle pattern on… Read More »
The S&P 500 index spent most of the month of August consolidating in a 4% wide channel between 2940 and 2820. This month it broke above resistance and traded up to the area of the July highs. A closer look at the S&P 500 daily chart shows new resistance in the 3030 to 3020 area.… Read More »
Thursday on Twitter we pondered the possibility that a bullish morningstar reversal pattern could be forming on the $SPY daily chart. The only piece of the pattern missing was the third and final large bodied up-day candle. That was exactly what we got at the end of Friday’s strong session, with the formation of a… Read More »
These charts reflect stocks in uptrends with clearly defined trend lines that represent good stop-loss reference points:
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 »
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 »
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 »
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 »
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 »
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 »