Author Archive for: Alex - Chart Freak
Entries by Alex - Chart Freak
What To Look At
I dont always do a Friday report, but there were a few interesting things that happened in the market. Lets see what those were...
This was the SPX going into yesterday, you can see that anything higher would be a break out type move
Yesterday the markets did move higher, but they pulled back into the close.
Watch Lists and Set Ups
First, I apologize that this wont be out before the market open, I think I had food poisoning last night and it was a rough ride. I am looking at the markets and stock set ups that have been discussed and wanted to just review a few things to watch for going forward. We'll start with our market recap ..
SPX futures are down as I write, but there is still upside possibility short term, if this breaks out.
That being said, there is still this reminder...
Sometimes It Feels Like A Roll Of The Dice
Yesterday I had a ton of bullish chart set ups and I posted some of them here. Since we are in an earnings period, some of the charts broke out higher, some went lower, and others broke out higher and then reversed lower. It felt like a roll of the dice, but honestly, the bigger picture of the markets themselves may have a lot to do with future direction of many stocks, so lets review some charts again!
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SPX - I figured we'd make a run for the top of this wedge, but that resistance line reversed price again. It is running out of room!
The NASDAQ gapped higher and didn't quite give it up...
STRONGLY BULLISH CHARTS
I dont want to spend a lot of time discussing the SPX, DOW JONES, NASDAQ, ETC when you can just look back at the weekend report and see that not much has changed in the bigger picture. Instead I want to run through a bunch of bullish looking charts. Oddly, it seemed that in almost every sector that I went through on Monday, Bullish set ups were there. Lets view about 30 charts from various sectors and discuss a few of them.
VJET- 3 D Stocks have bullish set ups. For traders , this is a low risk entry above the 50sma.
Next...
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Keeping An Eye On Things
This was a great week of trading. Oil broke out and all of our energy stocks put in some strong gains as expected. My call in NATGAS played out exactly as outlined , and this could play out nicely for traders this week too. Lets look at some charts and see how things went in other sectors too , and what we might expect moving forward.
SPX - I have been showing a bearish rising wedge pattern, like in my April 10 chart. We had more upside, but then the markets did start selling off Friday. Is that it?
I also want to show you something else.
Bulls-eye
SO far our ENERGY picks have been right on target. What I was looking for in Natgas for the past few weeks has also taken place perfectly. Gold & Miners? We'll discuss that too, but first lets quickly review the Equity Markets.
SPX is really in a tight spot. It needs to break higher soon. Will we get a pullback and a surge in commodities?
Does the NASDAQ look any different? There certainly was no shortage of break outs in Tech yesterday...
A World That Runs On Energy
Prices fluctuate and sometimes get extremely overdone in either direction, but the Energy needs of this planet are not going away. Thats the main focus of this report, but first let me address the reversal in the markets today.
QQQ - I have been pointing out the WEDGE pattern in the NASDAQ, SPX, etc. Today I just want to point out an observation with todays reversal on the 10 sma. It looks like Markets want higher prices again.
The SPX was similar , but I want to point this out on the IWM/IWC before moving on to Energy and Metals mkts...
Sitting Tight – Jesse Livermore
Men who can both be right and sit tight are uncommon. I found it one of the hardest things to learn. But it is only after a stock operator has firmly grasped this that he can make big money. - JESSE LIVERMORE
Jesse was a legendary trader in his lifetime. His experiences taught him that even though he was able to made good money trading, he also lost good amounts of money by over-trading. After decades of trading & investing, he offered the above advice, showing that patience can be rare, but also patience can be more rewarding if you know you are correct about a certain set up and patiently wait for it to unfold.
As a trader, I like to find & buy good set ups and sell them in a few days as they play out, but I also have tried to find proper set ups and allow them to play out until they are longer term rewarding. Let me give you a couple of examples of how "Sitting Tight when you know you're right" can pay off.
A Quick Look Underneath
You may have noticed that yesterday many of the markets across the board started out rising higher, but ended up selling off. Lets take a look and see if it means anything at all...
SPX March 13 - It reversed at resistance.
