Reversals, Volatility, and Trading

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When the markets get volatile, trading short term can be difficult for some. Buying low one day works out well, and then you may find yourself watching the gains evaporate in a quick drop. Friday was a quick drop and then Monday was a rip higher for the general markets, and Energy and Precious Metals are also a bit jumpy. Lets take a look and see what we can see in the charts.

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SPX - With Fridays drop, I said in the weekend report that many would want to go short, but WE are looking for a DCL almost immediately. Timing was late for a low, and that could be capitulation into a low. I mentioned obvious support areas for a reversal on this weekend chart.

SPX 9-9

This chart pointed out that a 1 week  sharp drop like we just saw could reverse and not have follow through  (red Arrows) .

SPX WKLY 9-9

SPX -  We got a fast reversal almost regaining all of the losses. Those going short Friday got burned. This may back off a bit and then surge higher through the 50sma in time.

SPX 9-12 Read More

Sept 10 Weekend Report

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This week ended on a sour note if you were long in various sectors. With the Fed decision coming up, investors seem jittery or anxious to lock in profits.  Is this the start of a new sell off , or just another small ripple in the large sea of investments? Lets examine the charts...

 

SPX SEPT 6th-  I thought that we finally got our DCL on that slight dip to the 50sma, and I will address that in the next chart. This LOOKS like the start of a major sell off, but ...

SPX 9-6 Read More

ENERGY AND PRECIOUS METALS

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The OIL and NATGAS inventory reports were released on Thursday morning, It looks like we can continue making  money from the Energy set ups.

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WTIC -

WTIC 9-8

NATGAS -

NATGAS 9-8 Read More