Today the NASDAQ finally closed over 2,000 and took out its November highs. This is the first close above 2,000 since January of 2002. It’s hard to argue with the price action in the indices. About the only thing that I don’t like is the fact that this NASDAQ high is on [...]
Here’s an article on how to trade Cup & Handle patterns — Cup-And-Handle Trading Techniques For Swing Traders. This pattern can lead to impressive gains and it’s the favorite of William ONeil/Investor’s Business Daily.
I just finished running my scans and all I can say is that there’s something for everybody out there. There are lots of stocks that have just been going straight up all month, and many that have been getting crushed all month long. It would appear that the rotation into cyclicals and large [...]
Larry Conners has written a follow-up to his article from last week on breakouts vs. pullbacks — Do You Buy Breakouts? Think Again (Part 2). The results are very interesting.
(Again, I’ve archived the article here)
Here’s another good (and timely) article by Dave Landry — Opening Gaps: Trade ‘Em, Fade ‘Em, Or Ignore ‘Em?
(I’ve archived the article here)
Here’s some good advice from Dave Landry at TradingMarkets — How To Trade On News Events. That’s required reading for anybody that bought at the open yesterday on the news of Saddam’s capture. You’ll also want to check out my #1 rule.
Sellers came out in force today to squash the ‘Saddam rally’. In classic sell-the-news fashion, the market opened on its highs of the day and never looked back. What’s worse is that the market closed on its lows and made bearish engulfing patterns in the indices and many individual stocks. The NASDAQ [...]
Stocks did a nice job of confirming all the hammers that were made yesterday. Now there are a lot of morning star-like (many are missing the gap btwn days 1 and 2, but they’re close enough for govt. work) patterns in individual stocks, especially on the NASDAQ. For its part, the NASDAQ index [...]
It certainly got ugly today, especially on the NASDAQ. Once again it’s broken below its 50 day moving average. It’s also sitting just a few points below its May - November trendline. The NASDAQ 100/QQQ was able to make a tiny bounce off of its corresponding trendline to close above the line. [...]
TradingMarkets.com has posted an interesting study comparing the results of buying breakouts to buying pullbacks. The results are rather surprising to me. According to the methodology used in the study you would make more money shorting breakouts to new highs than buying them. Although I’m not a big proponent of buying breakouts [...]
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