Author Archive for: Alex - Chart Freak

After a brief market review, I want to point out something that seems to be telling me that now is the time to act. Lets begin...

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SPX - Price was rejected at the upper trend line, and it dropped down to the 10sma. The Red Circle shows that shortly after prior DCLs, price did the same thing.  A drop below the dcl would not be healthy, the first daily cycle would be extending way too far and I would be suspicious.

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From here I'm going straight to OIL, NATTY, and The CRB...

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That is the question...

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SPX -  I'm Still expecting higher prices in the near term, with a DCL likely in place.

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Our  perspective on certain things can affect our emotions.   Isn't it true that how we view things often changes the way we feel about them?  Especially if there are two sides to a story?  🙂   Well it can be that way with trading too.  We can look at a long term bullish chart and see it as 'horrible'  if it is pulling back below our buy point.  The faces in the Theme picture above could very well be the many faces of trading, so I am going to discuss  perspective and emotions.

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If I show you this stock and simply ask,  " Is this chart Bullish or Bearish?"   How do you answer?

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BULLISH, right?  It has run up 300%, its in a channel of higher lows and higher highs, and has just pulled back from $14 to basically $11.50.

Perspective : I am being told that this is one dreadfully ugly chart.  If you bought at $4, you may love it,  but if you bought it at $12, $13, or even $14?  It has been nothing but volatile.

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So you see, it is a matter of perspective...

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That chart above  is FCX, and anyone who bought it in the past week may not be as happy as those that bought it lower.  Lets zoom in. Please read the chart.

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I dont know about you, but trading on Tuesday had me feeling like my basket had some dogs in it. Is that truly the case?  Lets take a look...

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SPX- CNBC was very concerned about the markets selling down today, but this chart is not bearish at this point.It keeps selling down and then being bought back, and that leads to a sideways move so far.

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Week after week we are seeing very good action and even fairly clear predictability in the various sectors. We have experienced some great gains in Miners, Energy, and Commodities for all of 2016.  I have to keep reminding myself, and so I want to remind the readers here too, that pull backs and corrections are expected and keep a market healthy. Lets review our markets and discuss that idea further. 

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I'll start with the NASDAQ WKLY  - The NASDAQ hasn't been as robust in its recovery as the SPX.  It almost looks to be rolling over,  so lets keep an eye on it.  

The SPX Daily  began  rolling over, but I see bullish signs too. Remember that corrections and pull backs can be healthy.  Is this a healthy pull back?

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