Entries by Alex - Chart Freak

AUGUST 2 – A Dull Gold Market?

August 2, 2017 /137 Comments/in /by

There is an old saying that says, "Never short a dull market."   Why?  Professional traders know that under the right conditions, a quiet or dull markets can suddenly break out into a strong move higher.  I am going to discuss this a little later in the report, but right now, let's visit a couple of sectors that have been a bit more active.

 

The DJIA is at new all time highs.  The SPX is still near the recent highs, but let's look at the Nasdaq & Transports...

 

QQQ-   So this could be a bear flag, and we see that the NASDAQ cannot rise & close above the 10sma yet, even though the DOW is at all time highs.  I would remain 'cautious' or alert  until it does.  This looks like it may want to drop down to the 50sma.  Would this dip  just be a 1/2 cycle low?  Possibly, but it will need monitoring if it does drop further. APPL Earnings were bullish and AAPL is set to open at new all time highs, and this may help the NASDAQ.

TRANSPORTS -  I pointed out that we didn't really even get a bounce in the transports, so I wondered if this was a warning sign.  We got a drop, multi day pause, drop,  multi day pause so far. Looking at the IYT now, I see a possible 5 wave move to the 200sma, and it is approaching oversold.

The Transports obviously broke down here,  but at least a bounce to back test that 50sma is likely.

 

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Tuesday August 1st

August 1, 2017 /92 Comments/in /by

In the weekend report...

 

NASDAQ - I was pointing out that the reversal on Friday after Thursdays slam down could be a false reversal.  This would draw in the eager 'buy the dip' crowd, but they may get stopped out shortly after. I pointed out a similar slam & reversal in June, and it did not just take off higher...

 

 I have often mentioned in my reports when discussing Bull Market runs, that they are NOT as easy to ride as most think.  These long rectangles show that contrary to popular belief, bull markets do not just go up day after day.

NASDAQ on Monday-  Many buyers would put their stops under Thursdays low to minimize losses. You can see that if the markets start selling down on Tuesday, stops may get run, and that could also cause even more selling, possibly back to the 50sma.  That might be a good buy.

NASDAQ - I wanted to point out again that in both June & July, sharp drops followed by a reversal day  bounced around for weeks.

 

That said, ...

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WEEKEND REPORT JULY 29

July 30, 2017 /145 Comments/in /by

With all of the detailed daily reports pointing out just about everything there is to look for, I like the weekend report to usually just be more of a big picture look at what happened over the past week and what we can expect going forward.  Well, there is just too much that stands out to me at this time, so I will cover the bigger picture and some of the smaller details too.

 

SPX - I understand the "buy the dips' Theme in a bull market, but is every dip being bought profitable or easy to buy & hold? This week we saw a market slam down on Thursday, and Friday had a small reversal.  Was that 'Buy the dip" on Friday? Notice June 12th.

 

The timing on June 12th for that slam was also similar to this past weeks slam, and price went sideways to lower for 4 weeks into a dcl. ( Each 5 candles is a week of trading). Buying that dip made no money for  weeks actually.

SO NOW LET'S CHECK OUT THE NASDAQ ...

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What’s New? July 25th

July 25, 2017 /144 Comments/in /by

We have an FOMC Meeting this Wednesday, and the weekend report covered a lot of the general markets and various sectors expectations.  With that in mind, we will review a few of the things that took place on Monday, and then I will point out a few more stock picks...

 

WTIC JULY 21 - From the weekend report I pointed out that Wednesday with the inventory report, Oil broke over the 50sma.  This was bullish, an then it plunged 2 days later back below the 50sma.  I said that  I will be watching for this trend line to support the drop, for it to remain bullish.

 

WTIC JULY 24 - Well how about that! Let's see if Oil can get back over that 50sma.

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WEEKEND WRAP UP JULY 23

July 24, 2017 /119 Comments/in /by

 

SPX - This could be a swing high, but we also saw this type pf action 5 days ago, didn't we. Also we see that Friday ended as a reversal higher, so a confirmed swing high would need to drop below  2460, at this point.

 

SXP WEEKLY - The SPX Longer term chart is at an area that has been toppy in the past.  It can just keep climbing, or drop into an overdue ICL, so trailing stops should remain in place.

 

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Thursday July 20- ENERGY NOW PERKING UP TOO

July 20, 2017 /94 Comments/in /by

Things are really stacking up for traders and investors now. As mentioned in prior reports, and proven true on a day to day basis, Metals, Energy, Solar stocks, Precious Metals, and more are all signaling good things to come.  Let's get right into it...

 

 

NASDAQ - The NASDAQ has moved higher for 9 straight days.  It even gapped open on Wednesday. We got a 'safer buy signal' on the move out of the lows above the 50sma last week, so...

If you entered TQQQ you are up 11% in 8 days. Not bad for a fairly safer trade.

I do want to mention 1 thing though....

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