The sp500 today showed a strong performance and was able to hold a good portion of the day’s gains. Today’s move higher in the sp500 and the Dow Transports seems to vindicate the idea that the previous multi week sideways trading was simply a consolidation that served to work off over bought levels. The Dow … Read more
After looking at the NYSE summation index today I am starting to wonder how wise it is to start shorting this market next week. The NYSE summation index is showing the 5 day moving average crossing above the 10 day moving average and we also see the Relative strength index of the summation index crossing … Read more
The Dow Jones Transportation Average is a great example of the type of market we are dealing with now. We are certainly not dealing with a volatile trading range type market. Quite the opposite. We have a market that is trending higher in persistent trend fashion and relieving overbought conditions by going sideways. Looking carefully … Read more
The sp500 is trading in a somewhat narrow trading channel and appears to be bound for the top of the channel before any new extended correction takes hold. There is an important resistance band near 1290 that may also contribute to slowing price momentum. A successful 3rd touch of the bottom portion of the up … Read more
AGM Federal Agricultural Mortgage Corp. has quite a nice trading structure and today I went long AGM at 16.83. AGM closed nicely into and above a key trading range as shown in the chart below and I think it has a good chance at moving to the top of the tradeable void between 17 and … Read more
The UUP ETF is currently in somewhat of an interesting juncture. The UUP US Dollar Index ETF has recently made a second attempt to break back up and through the neckline resistance level that defines a somewhat large head and shoulders topping pattern. This neckline level of 23.5 on the UUP is key resistance. We … Read more
The on balance volume indicator still is not able to confirm the current mega rally in the SPY ETF to new 52 week highs. While the SPY ETF moves to new 52 week highs, the on balance volume indicator struggles to exceed the April 2010 highs. I have shown this indicator one or two times … Read more
The sp500 today continues to trickle higher on some of the lightest volume levels of the entire year. The MACD histogram is showing a bullish triple P setup which would be confirmed with a close above today’s price high. The RSI is close the 70 level and could mean a move above it into the … Read more
There is still no short signal according to my work. We appear to be in a sideways market that is simply consolidating the upwards burst in price action that occurred in early December 2010. This upwards burst in price action represented the completion of the handle portion of the much larger cup and handle formation … Read more
Today on two occasions I started to write a post about how it seemed a BOT Short signal was appropriate. But then in each case I deleted the post and decided not to submit it. I was writing the second post right near the close of market but then was not able to send it … Read more