Market CommentaryMore Market Commentary
On Monday I wrote an article for Trader Planet with a target for the Nasdaq Futures of 4355. It took a while for the index to build a base of support, but the index closed just 10 points from that target on Thursday. The good news is that a critical technical indicator is now favoring even higher targets.
The indicator is Volume Profile and the base that the NQ built over the last few days has moved the Volume Profile Point of Control from 4125 to 4268. What this means in simple terms is that...Read More
We don’t trade individual stocks, so we don’t often watch corporate earnings reports. But we’re making an exception for ALCOA, which reported its Q3 earnings Thursday evening, because we think what is happening to ALCOA is likely to happen to a lot of the companies, especially those in the S&P500. And we think it won’t be pretty.
Alcoa is the first major US company to report earnings in each quarter, so it sets the tone for the earnings season. This time the tone ain’t good.
AA reported “adj...Read More
Anxiety is a thin stream of fear trickling through the mind. If encouraged, it cuts a channel into which all other thoughts are drained. ~Arthur Somers Roche
Once upon a time, in the good old days, before QE changed everything, any signs of strength from copper could be construed as a sign that the economy was on the mend. After QE, this story came to an end, and a new reality came into play. The Fed manipulated the markets in favour of short-term gains through what could be determined as b...Read More
When there is high uncertainty as there is now we often search for clues telling us when market direction will change. Where do we go for answers? The media of course, because they seem to know what the next move will be . The financial media seems to believe all involved with markets are 'long' and bullish, therefore down moves are considered 'bad' or even inspired by evil. It's interesting, when markets go into a tailspin we see more bears showing up on TV or in other financial media.
Since mid-July shares of Progressive made several attempts at breaking out above the $31.00-$31.50 resistance level. At the same time the $18B auto insurer put in a series of higher lows, which led to October 7th's close above the $31.50 level. PGR may be up over 20% year to date, but there is likely another 5-10% of upside left in the tank in the coming months.
For one thing the daily chart above shows a text book resolution of an ascending triangle that was in the works over the summe...Read More
Featured StoriesMore Featured Stories
Here’s why a trading room could be hindering your success as a day trader. I ran a trading room from 2010 to 2015 and had hundreds of traders pass through my online trading room. Each day I would present to the room trade ideas and live trade calls with entries, stops and targets. I honestly felt that I was helping traders so they could be successful. I personally have been trading my own method, the “Gap Edge Method,” since 2003. However, after running the room for five years I saw a lo...Read More
In tennis, one of the most common mistakes that newer players make is to look across the net at the spot they are targeting as they strike the ball You might not think this is a significant error, but it turns out, it is. And if you read a little further, there is a concept here that might help your trading.
The process of striking a tennis ball in your racquet’s sweet spot that’s coming toward you at 50, 70 or even 90 mph requires exquisite timing. The brain can handle it, but it needs th...Read More
By Gil Morales, CEO, Gil Morales & Company, LLC
In my recently published book, “Short-Selling with the O’Neil Disciples: Turn to the Dark Side of Trading,” , I discuss the short-sale set-up chart pattern known as the “Punchbowl of Death,” or “POD” as I like to refer to it in acronym form. Like the more classical and orthodox “Head & Shoulders” formation, the POD is simply another template, albeit a somewhat unorthodox one, that I use to identify potential short-sale targets in-the-making. Wha...Read More
Shares of Tesla are up about 10% in 2015, which is nothing special for a company that seems to have an agenda to out-special every other high-performance car company out there. And it does a pretty good job of it. If you have never been wow’ed by a car, take a test drive in a dual motor version and learn what ludicrous acceleration feels like.
The stock is holding up well for a company that’s so speculative that investors either hate it or love it. One reason is that unlike most Nasdaq lea...Read More
Holter, “Prepare for a reset… The Fed is now helpless to stop the coming global financial calamity.”
In a September 20, 2015 interview, gold expert Bill Holter argued that the economic system is on the verge of a “financial calamity.”
Discussing the recent Fed decision not to raise interest rates, Holter said, “If we had an increase in interest rates. . .the markets would close within two weeks. . ..I don’t think there’s any way the Fed can tighten.” He sees more qu...Read More