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Market Commentary

More Market Commentary

Emerging Markets Stocks Gaining Strength, Oil and Metals Pull Back

iShares MSCI BRIC Fund Relative Strength Ratio rose to its highest level in nearly 6 months on 7/24/14. BKF/SPY currently remains systematically neutral, but the 50-day SMA is now rising up toward the falling 200-day SMA, such that a bullish crossover is possible in days ahead.

Emerging Markets Stocks ETF Relative Strength Ratio rose to its highest level in nearly 8 weeks on 7/24/14. EEM /SPY currently remains systematically neutral, but the 50-day SMA is now rising up toward the falling ...

Jul 25, 2014
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Now, If Only Oil Would Cooperate

One day later and we have the Dow working to get to the red, not the other way around, as it was yesterday. It reminds me of the push-me-pull-you creature in the Dr. DoLittle books. In any case, speaking about children, their parents, their grandparents and photos of just about everything they do, I will admit I was wrong about Facebook.  

  • Facebook's Wednesday earnings report blew away predictions, with monthly average users and daily average users each growing double digits year over year.


Jul 24, 2014
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September British Pound Futures: Trading Idea July 24, 2014

September British pound futures a selling opportunity on more price weakness.


See on the daily bar chart for the September British pound futures that prices are in a fledgling downtrend and have just hit a four-week low. The bulls are fading. A move in prices below solid chart support at Thursday morning’s low of 1.6966 would become a selling opportunity. The downside price objective would be 1.6750, or below. Technical resistance, for which to place a protective buy stop just above, is loc...

Jul 24, 2014
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S&P 500: 2000 Is The Target

In spite of geo-political events, the S&P 500 is on a run again. Earnings season has given traders and investors some good data this week and the market has run with it. Wednesday saw the S&P 500 close at an all-time high of 1987.01, surpassing the previous record set on July 3.

The last year has seen the S&P 500 put in new highs 58 times. With interest rates at historically low levels, and the Fed maintaining its stimulus program, traders and investors continue to go to the equity markets fo...

Jul 24, 2014
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Industrial And Consumer Stock Sectors Losing Strength

Consumer Staples stock sector ETF Relative Strength Ratio broke down below its lows of the previous 4 months on 7/23/14 and remains systematically bearish.

Consumer Discretionary stock sector ETF Relative Strength Ratio broke down below its lows of the previous 4 weeks on 7/23/14 and remains systematically bearish.

Industrial stock sector ETF Relative Strength Ratio crossed below its lows of the previous 9 months on 7/23/14, confirming its systematically bearish trend.


Jul 24, 2014
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Featured Stories

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Top 10 Free Trading Resources

The following is a list of my top 10 favorite free resources on the web for investors and traders. None of these websites involve any cost, though some do offer the possibility to upgrade to a pay service. We did not include TraderPlanet, since you are already here.

1.www.TopStepTrader.com If you are intraday trader that is tempted to have CNBC on during your trading day here is an entertaining alternative. "Eddie the Broadcaster" will keep you informed with a solid mix of market news, specia...

Jul 23, 2014
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Forex Tips: When Trading Discipline Goes Too Far

“Stick to your trading plan” is what we hear said all the time and I’ve been known to say it too.  Although that may be the best thing to do, if your trading plan is ok, there’s the odd time that crops up that makes you question it.

Being a dedicated forex trader I’ve done some serious screen time.  Eyes locked furiously on the charts waiting for my setups, mesmerized by the ebb and flow of the markets.

While going about my normal trading day, there have been several instances where the radical...

Jul 22, 2014
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Rehypothecation, Has The Goose Stopped Laying “Gold”en Eggs?

The practice of rehypothecation is centuries old. It has been used to create “free” money supply and in recent times the Chinese have become rather fond of commodity funding deals in an attempt to leverage deals and grow their economy.

The model works, at least in theory, and while all is well one can extend the daisy chain, seemingly for ever…

The universe provides infinitely after all, doesn’t it? This is basic pop quantum physics. The difficulty arises in the very moment a link weakens an...

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Technical Analysis: Using Multiple Timeframes

The objective of any trading strategy is to identify trading entries with a high positive predictive value: i.e. the sensitivity and specificity of the order are likely to be successful close to 90% of the time.

Getting Started

In order to achieve this —the market must be defined or broken down into two separate energies: 1) price action or market structure and 2) indicator analysis. Both parameters provide separate information that must be integrated in order to evaluate the predictive value...

Jul 17, 2014
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India’s Impure Gold, Short Squeeze To $5,000

The India Times recently reported that the Reserve Bank of India is planning to ship impure gold to the Bank of England to swap it for pure gold that can be traded as London pure bars.

If the objective is to exchange impure for pure bars that is very easily done. Any major refiner would be happy to smelt the gold, test it for impurities, remove the impurities, and then recast the gold at the purity India desires. The gold could then be shipped back to India, instead of being stored at the Ban...

Jul 14, 2014
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