Tag: technical analysis

Breadth Is Suspect

I’ve been trading long enough to know better than to step in front of a moving truck and right now the market has the momentum of a Mac. However, there are some indications that have me a little skeptical of this most recent push higher and thought I would share them. First up is a

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SPX Gaps

Quick post to share something from research I’m conducting. I’m delving into the weekly options in $SPX and one of the areas I wanted to look at was gaps. Below is a chart that shows the difference between Friday’s close and the following Monday’s open, in points. Decent volatility from the financial crash to today.

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Trade Your Way

A very common theme I’ve seen lately in talking with new traders is that they tend to lose sight of their focus. We all remember why we got into the markets and for some the journey to finding a trading style is still in progress. I believe that trading styles match with life styles and

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Pivotal Day

Monday is more than the first day of the week–it is a pivotal day for the $SPX. The area in question is more of a price range because when I draw technical lines on the broader market it works well. In looking at the monthly chart below you can see that the 1315-1318 area has

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Week-to-date

I’ve been asked by many to explain some of my tweets and indicators that I use during the day. Nothing fancy and most are accessible to anyone. I’ll start with a week-to-date chart of the $SPY that I keep up on my middle screen. Actually it only takes up 1/2 the screen as the other

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Possible Fades (Strategy)

Regardless of the overall trend I believe there are always names that can be shorted. I prefer to sell call spreads or buy a put versus shorting the stock as I have defined risk by doing so and that helps me sleep better at night. Here’s a simple scan that I run every night to

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Smithfield Foods (SFD)

Through the use of multiple timeframes a nice setup is emerging in Smithfield Foods ($SFD) and looks to gain $4 or more (about 19%). It’s in a decent sector and the stock is outperforming its peers over the last 6 months. I’d consider buying a starter position with a break above $21 with an add

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Ascending Triangles

Gotta love the ascending triangle as a high probable setup. You’ve got defined risk in placing your stop under the uptrend and once the resistance is broken you move your stop just under that level. Here’s two that I picked up from Friday’s scans.  

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New One Year Daily Highs

Wednesday’s action caught some by surprise and perhaps a bit of short covering ensued as a result.  I track the $SPX in many areas and one metric is new daily highs. Here are the names of the components that printed a new daily high Wednesday. Some of the names below have decent looking charts. Ameren

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Confluence

After taking a week off I’m truly able to see the market with a fresh perspective. Even though I attempt on a daily basis not to get too set in my approach, it happens. It’s only after an extended break that I’m able to see that I may have been too comfortable in my analysis.

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