Author Archive for: Alex - Chart Freak
Entries by Alex - Chart Freak
March 28 – Bouncing Sideways
Monday saw many areas of the markets doing pretty much what was expected, pulling back, consolidating, and just plain ole bouncing around.
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Going Forward
Lets discuss what I think we are going to see going forward from here. Just like we have seen in the past, it will NOT be a straight move in one direction, I expect volatility along the way. The above picture helps us to see what to expect 🙂
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SPX- After a nice multi week rally, I have been saying that we are due for a pull back. I do not think that the 3 day pull back that we got is all that we will get, even though that was a reversal candle on Thursday. We are at resistance for 1 thing, and ...
March 24 – Corrections
The markets have a way of maintaining themselves, and that is through corrections. I believe we have started a few 'corrections' now. Any pain from these corrections should be short lived this week, since the markets are actually closed Friday in the U.S. Today is the last trading day of the week. Lets take a look at the markets.
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SPX - I have been pointing out this rising bear wedge for a while, expecting a correction. I believe that it has started.
The Dow looks the same
PUBLIC REPORT- THE TURNING POINTS
Markets rally, Markets drop, and markets reach turning points. We discussed this in the premium side of the weekend report. Lets look at a couple of the areas that we discussed Sunday March 20th.
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SPX – Whether the recent run of lower highs and lower lows started a bear market or not, I still expected a strong rally when we were at recent lows. It would draw in bulls, but what comes next after 6 weeks higher?
This rally has played out pretty much as expected, but I want to point out some interesting changes in character that could affect future trades / trading.
Open To Debate
The weekend report discussed Turning Points. Though I have laid out my big picture expectations, I also mentioned that at turning points it is important to continue to examine clues from an unbiased view point. Sometimes subtle changes at turning points can either alter the bigger picture or confirm it. I discussed a few changes developing in my weekend report, so lets continue to examine any clues that may appear.
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SPX - Our run higher still resembles the run higher last fall in many ways. I am expecting a dip down into a DCL soon, but the move out of that daily cycle low is going to be important to watch. It is not time to short this market yet. As the market rises , I see a bearish wedge and lighter volume. We wait for the dip.
Usually at tops (even temporary tops) , the VIX gets down near $12 -$13. Spikes higher in the vix can lead to bottoms, and a spike lower can signal a top. The vix is low enough, but a spike lower would probably signal a temporary top.
The Turning Point
It doesn't matter whether markets are rising or falling, sooner or later, they hit a turning point. We have a lot to discuss this weekend regarding those turning points, so lets dig right in...
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SPX - Whether we started a bear market or not, I still expected a strong rally when we were at recent lows. It would draw in bulls, but what comes next after 6 weeks higher?
This rally has played out pretty much as expected, but I want to point out some interesting changes in character that could affect future trades / trading.
Welcome To Quad Witching
Quad witching can add volume and a little volatility to the trading day, so I just wanted to do a review of the markets and discuss a few trades.
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Let me start with the IWM this time. I actually like this set up for a run to the 200msa. We'll see if Quad witching helps or hinders things. This does look bullish.
I wanted to start with the IWM, because...
When Is It A Lower Risk Trade?
In the premium section of chartfreak, we’ve discussed using Low risk entries to take a position in a stock, but what makes them low risk? Lets take a look at a couple of examples. . First, we have been trading sectors that looked to have bottomed recently after seriously selling off . They give evidence […]
