So much for all those bullish candles that popped up yesterday. Today was a great example of why you wait for confirmation before initiating positions. The selling accelerated again today, creating another distribution day. I think we can safely say that the rally is done now, given all the distribution days [...]
Th reversal candles I’ve been waiting for showed up yesterday. There were a lot of hammers and bullish harami made yesterday and most of them were right at the lower Bollinger Band. To give an even stronger buy signal, the stochastic indicator on many of those stocks are flashing a buy signal [...]
There’s only one word to describe Wednesday’s action — Fugly! All the indices sold off in higher volume. That makes the 4th, 3rd, and 2nd distribution day for the Dow, S&P 500, and NASDAQ, respectively, since September 8th. IBD preaches that you don’t want to see more than a couple of distribution [...]
Pretty amazing strength today given how ugly the market was yesterday. I was real surprised to see the NASDAQ almost close yesterday’s gap, and on increasing volume. Like I said this morning, the uptrend must still be respected, and it wouldn’t surprise me to see the market levitate through quarter-end on the backs [...]
I was starting to feel a little silly for getting cautious last week when I pointed out the potential double top on the indices. The day after I made that observation the market pushed above the resistance of that potential double top. Well, after yesterday’s gap down it’s looking like that push higher [...]
It looks like the post-Fed related nuttiness I expected yesterday showed up today. The bottom fell out of the market intraday after a couple of tries at last week’s highs. So we’ve hit a bit of resistance and are setting up for yet another potential double-top in this rally. The strong [...]
The market has worked off the overbought condition of last week by basically going sideways. The gap down openings on 9/9 and especially the one on 9/10 are a bit of a concern to me. That second gap has been a resistance level over the last three days. Yet and still, the [...]
The selling that started yesterday intensified today on the Dow and S&P 500. Both indices notched their second distribution day in a row. The S&P has now slipped back under its breakout point, and the Dow is closing in on its breakout level. There’s talk of this sell-off being related to terrorism [...]
I’ve pretty much given up on trying to make any sense out of what the movement of the USD means to the stock market. All spring the dollar was getting crushed and everyone was saying that was a good thing for the stock market. Then once the stock rally started going, the dollar [...]
I mentioned yesterday that I didn’t like the volume action on the S&P 500. It was up on lighter volume than the previous down day. Well the volume action today was even worse across all the major indices. Each of them had a distribution day today. There’s still not much reason [...]
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