http://finance.yahoo.com/news/StockPreachercom-issues-pz-3972316092.html?x=0&.v=2
full disclosure: no positions
August 19, 2009
Stocks For Short Watch
FRZ may have another day of run but this won't keep up for long. Short biased. NEPH is in stock pump newsletters. Even shows up on Yahoo finance. laugh. Short biased on major technical breakdown on big sell volume. Though NEPH doesn't have the look of pure manipulation this run could keep up for some days.
http://finance.yahoo.com/news/StockPreachercom-issues-pz-3972316092.html?x=0&.v=2
full disclosure: no positions
http://finance.yahoo.com/news/StockPreachercom-issues-pz-3972316092.html?x=0&.v=2
full disclosure: no positions
August 18, 2009
Stocks Fighting The Bear
These are some stocks that had unusual buying volume yesterday during the sell-off.
A little break over resistance on a big volume spike for this one. Earnings were yesterday after the bell. Had a couple hammers off of trend line support. I like buying the day after a hammer on a trend line. I could be a little late with this one but like most of these in this post being patient and waiting for pull-back on trend line support is possible here.
Longer time frame. Nice trend line.
Lots of volume back to back on airline penny stock MESA. PNCL another airline in play.
NANO last time volume spiked it sold off for a bit.
Just pure momo. Hammer breakout.Hammer breakout.
full disclosure: no positions
A little break over resistance on a big volume spike for this one. Earnings were yesterday after the bell. Had a couple hammers off of trend line support. I like buying the day after a hammer on a trend line. I could be a little late with this one but like most of these in this post being patient and waiting for pull-back on trend line support is possible here.
Longer time frame. Nice trend line.
Lots of volume back to back on airline penny stock MESA. PNCL another airline in play.
NANO last time volume spiked it sold off for a bit.
Just pure momo. Hammer breakout.Hammer breakout.
full disclosure: no positions
August 15, 2009
Special Situation Stock
I just stumbled upon this special situation Zareba Systems ZRBA. Looks like they are doing a reverse split and will cash out shareholders who hold fewer than 250 shares for $5.20. The stock closed at $3.60 Friday.
I just found this over at Mike Goode's ReaperTrades.com
full disclosure:No position. May take a position in future.
I just found this over at Mike Goode's ReaperTrades.com
full disclosure:No position. May take a position in future.
August 13, 2009
Stocks In Trends & A Really Cool Stock AXL
This isn't my watchlist. These are just some charts that I thought were pretty neat and wanted to make an example of. I guess this post is like a diary of charts.
Anyway, AXL traded really well last week. I think this one came in my scans in the low $1's. That was when I put it in my watchlist and posted that watchlist on Twitter on July 16th . Before the big run. Yes, stocks like this fell into my lap in my scans the weekend before the market psycho bull run. I bet you remember that week. What a week. Even though they were in my lap that week I would give myself a D+ on trading them. I didn't make enough trades in them. I also only caught about 16% profit on AXL when there was an easy 50%+ to be had as you can see from this chart.
AXL ran about 50% if I remember correctly on the first big push day on volume. Funny enough that last huge day it had the stock maxed out again at 50%. Pattern? I'd say yeah. But the better pattern is the way it trades. It runs then consolidates the next day. You can see it in the red candles that represent a negative finish for the day. That 50% was pretty cool but the better indicator was when it topped out at $3.98ish for the second day in a row. I think one of those days was actually $3.99 if I remember correctly. The round number $4.00 was a significant resistance level for the stock. Round numbers and .50 marks on stocks under about $3 are psychological levels and even more importantly important to program trades I feel. Half the volume on the exchanges is computers. I learned the round number edge from another trader almost a year ago. If you were holding the stock long after the shooting star/gravestone candle on the 3 or 5 minute at below $4 you better have been concerned. I was just watching though because I had already taken a profit days earlier and was afraid to chase.
Beazer BZH again. Almost an amazing thing to see in a big board stock. Day after day of a rise with few red days. Almost has the look of manipulation.
You can see on these you just wait for a pull-back to trend line then you buy when it's on the trend line support. You sell your gain. Repeat. This stuff happens all the time.
Nice failed signal on PACR when it broke trend line support and still held. Wish I had notice this earlier. Maybe still good on pull-back.
full disclosure: no positions
Anyway, AXL traded really well last week. I think this one came in my scans in the low $1's. That was when I put it in my watchlist and posted that watchlist on Twitter on July 16th . Before the big run. Yes, stocks like this fell into my lap in my scans the weekend before the market psycho bull run. I bet you remember that week. What a week. Even though they were in my lap that week I would give myself a D+ on trading them. I didn't make enough trades in them. I also only caught about 16% profit on AXL when there was an easy 50%+ to be had as you can see from this chart.
AXL ran about 50% if I remember correctly on the first big push day on volume. Funny enough that last huge day it had the stock maxed out again at 50%. Pattern? I'd say yeah. But the better pattern is the way it trades. It runs then consolidates the next day. You can see it in the red candles that represent a negative finish for the day. That 50% was pretty cool but the better indicator was when it topped out at $3.98ish for the second day in a row. I think one of those days was actually $3.99 if I remember correctly. The round number $4.00 was a significant resistance level for the stock. Round numbers and .50 marks on stocks under about $3 are psychological levels and even more importantly important to program trades I feel. Half the volume on the exchanges is computers. I learned the round number edge from another trader almost a year ago. If you were holding the stock long after the shooting star/gravestone candle on the 3 or 5 minute at below $4 you better have been concerned. I was just watching though because I had already taken a profit days earlier and was afraid to chase.
Beazer BZH again. Almost an amazing thing to see in a big board stock. Day after day of a rise with few red days. Almost has the look of manipulation.
You can see on these you just wait for a pull-back to trend line then you buy when it's on the trend line support. You sell your gain. Repeat. This stuff happens all the time.
Nice failed signal on PACR when it broke trend line support and still held. Wish I had notice this earlier. Maybe still good on pull-back.
full disclosure: no positions
August 11, 2009
Net Current Asset Stock ADPT
ADPT has $370.2 mil in net current asset value and a market cap of around $350 mil. The stock just traded higher today amidst today's market beating.
There has been some heavier buying recently as the volume spikes tell. If and only if it trades and closes over $3.00 per share for a couple days I feel like it has a good shot at $3.60
full disclosure: no position
There has been some heavier buying recently as the volume spikes tell. If and only if it trades and closes over $3.00 per share for a couple days I feel like it has a good shot at $3.60
full disclosure: no position
August 10, 2009
My 2009 Net-Net Stocks Performance & Going Forward
I went back through the blog starting with the first day of 2009 and crunched some numbers on my net current asset stocks pick performance. This assumes one bought them the next day after finding them on the blog this year. If it was on the blog in 2009 and less than net current assets I used it. Looking through the 2009 list there are some that I posted on earlier than 2009 like HHGP which is a -20% loser since the initial post pre 2009,TUES +58% gainer and HKN -35% since its December post when it was less than tangible assets however. I think PARL was on the blog in 2007 or 2008 to but I didn't go back that far and a search didn't turn it up. It would be a looser from then. The rest were fresh for 2009.
This might sound a little weird but I think I've said this before. I really had no idea what I was doing with net-nets before around mid-2008. In 2007 when I started following them and most of 2008 I was just feeling them out. From mid 2008 on there are a lot of winners to though of course.
These returns below were calculated with the potential buy-in starting the day after it was on the blog in 2009 because I didn't always post during market hours. These returns assume one bought that next day and sold at the stocks high afterward. The likeliness of selling at the high is not highly likely but had one decided to protect the potential profits and sell on the way up it would have been very possible to have come out with a good chunk of the bulk of those profits. About all of these I calculated about 3 weeks ago so some of them are probably up a lot more since then. SMRT hit 10.50 for example. The ones with technicals next to them were ones that technical analysis had a major role in.
25 winners
4 losers
Winners
PIR 1,600% technicals
SMRT 670%
SWIR 285%
TUES 236%
PXG 293% technicals
MSON 178% technicals
VVTV 194%
HHGP 156%
CACH 150%
AERG 100% in 1 day technicals
ANAD 96% technicals
GSIG 77% technicals
NLS 58% technicals
MLR 48%
CALL 45%
PARL 42%
HURC 40%
FSII 40% technicals
LDIS 28% technicals
JOB 26%
AEY 17%
SPAR 20% technicals
IFON 19% technicals
HKN 18%
IVA good run .50 to .70 but I think was to illiquid
NSTR .05%
Losers
CDCO -5%
ADGF -19%
RFIL -25%
QLTI -53%
SKX -46% stock crashed after post. Maybe a little to hard on this one because if doubled down off March lows it went to 14 as of now.
I'm going to start tracking the performance of my net current asset stock aka net-net picks better from here out. For it to be a pick I'll do a post on it and say it is a buy at such and such price. I'll also add it to this portfolio here. I'm pretty sure this can be viewed by anyone. I may also add none net-nets from time to time. I'm not liking Tickerspy so far because I haven't figured out how to even sell a position with it. I started a Marketocracy portfolio to which I think I like better but the $1 mil it gives me to manage is a bit much to just show how I can trade these net's.
If you've been paying attention to my net-net posts, for months now I have only been putting a net-net up if it is worthy of an actual buy very soon me. Since 2007 I have put up a lot of net-net's as potentials with my thesis on them but didn't always pound the table on them as a buy that day. I'd usually run through the good I saw and the bad. I was good then but I am even better now.
From here out my skill with stock picking will be a little more on display be it turn out good or bad. Some time in the future I may switch it over to Covestor.com. Covestor actually taps into your broker so with them there is the most complete transparency possible. For now though I feel like posting on them around the same day I trade them will do. I put up FSII ahead of time because that set-up was so good I wanted put out a heads up. I think the bulk of you that read my blog are here for net-net's and value plays. It's not always easy for me to post up an entry for a net-net trade in real-time on the same day so I might just do these watches. I don't keep as close an eye on net-net's and deep value day to day as I do my other watchlists. I trade a lot of different strategies.
I brought up earlier that I want to start charging a yearly or monthly subscription for my net-net picks. If I go that route it will still be months off. You will also have the opportunity to track my progress better before deciding if $5-$8 a month is worth it. As you can see since 2008 it has been going well and I've actually even stepped up my proficiency lately.
I've only been following net-net's since 2007 and have made really big progress since just 2008 in them. I have kind of gotten in a groove on which ones to drill down on with the fundamental analysis and focus on. Incorporating technical analysis as a tool in my various strategies has also been very significant. I am a very different investor and trader with net-net's and approach them differently than most investors who work in them. I believe that has really helped me identify some of the best performers better.
full disclosure: no positions
This might sound a little weird but I think I've said this before. I really had no idea what I was doing with net-nets before around mid-2008. In 2007 when I started following them and most of 2008 I was just feeling them out. From mid 2008 on there are a lot of winners to though of course.
These returns below were calculated with the potential buy-in starting the day after it was on the blog in 2009 because I didn't always post during market hours. These returns assume one bought that next day and sold at the stocks high afterward. The likeliness of selling at the high is not highly likely but had one decided to protect the potential profits and sell on the way up it would have been very possible to have come out with a good chunk of the bulk of those profits. About all of these I calculated about 3 weeks ago so some of them are probably up a lot more since then. SMRT hit 10.50 for example. The ones with technicals next to them were ones that technical analysis had a major role in.
25 winners
4 losers
Winners
PIR 1,600% technicals
SMRT 670%
SWIR 285%
TUES 236%
PXG 293% technicals
MSON 178% technicals
VVTV 194%
HHGP 156%
CACH 150%
AERG 100% in 1 day technicals
ANAD 96% technicals
GSIG 77% technicals
NLS 58% technicals
MLR 48%
CALL 45%
PARL 42%
HURC 40%
FSII 40% technicals
LDIS 28% technicals
JOB 26%
AEY 17%
SPAR 20% technicals
IFON 19% technicals
HKN 18%
IVA good run .50 to .70 but I think was to illiquid
NSTR .05%
Losers
CDCO -5%
ADGF -19%
RFIL -25%
QLTI -53%
SKX -46% stock crashed after post. Maybe a little to hard on this one because if doubled down off March lows it went to 14 as of now.
I'm going to start tracking the performance of my net current asset stock aka net-net picks better from here out. For it to be a pick I'll do a post on it and say it is a buy at such and such price. I'll also add it to this portfolio here. I'm pretty sure this can be viewed by anyone. I may also add none net-nets from time to time. I'm not liking Tickerspy so far because I haven't figured out how to even sell a position with it. I started a Marketocracy portfolio to which I think I like better but the $1 mil it gives me to manage is a bit much to just show how I can trade these net's.
If you've been paying attention to my net-net posts, for months now I have only been putting a net-net up if it is worthy of an actual buy very soon me. Since 2007 I have put up a lot of net-net's as potentials with my thesis on them but didn't always pound the table on them as a buy that day. I'd usually run through the good I saw and the bad. I was good then but I am even better now.
From here out my skill with stock picking will be a little more on display be it turn out good or bad. Some time in the future I may switch it over to Covestor.com. Covestor actually taps into your broker so with them there is the most complete transparency possible. For now though I feel like posting on them around the same day I trade them will do. I put up FSII ahead of time because that set-up was so good I wanted put out a heads up. I think the bulk of you that read my blog are here for net-net's and value plays. It's not always easy for me to post up an entry for a net-net trade in real-time on the same day so I might just do these watches. I don't keep as close an eye on net-net's and deep value day to day as I do my other watchlists. I trade a lot of different strategies.
I brought up earlier that I want to start charging a yearly or monthly subscription for my net-net picks. If I go that route it will still be months off. You will also have the opportunity to track my progress better before deciding if $5-$8 a month is worth it. As you can see since 2008 it has been going well and I've actually even stepped up my proficiency lately.
I've only been following net-net's since 2007 and have made really big progress since just 2008 in them. I have kind of gotten in a groove on which ones to drill down on with the fundamental analysis and focus on. Incorporating technical analysis as a tool in my various strategies has also been very significant. I am a very different investor and trader with net-net's and approach them differently than most investors who work in them. I believe that has really helped me identify some of the best performers better.
full disclosure: no positions
My 2009 Net-Net Stocks Performance & Going Forward
I went back through the blog starting with the first day of 2009 and crunched some numbers on my net current asset stocks pick performance. This assumes one bought them the next day after finding them on the blog this year. If it was on the blog in 2009 and less than net current assets I used it. Looking through the 2009 list there are some that I posted on earlier than 2009 like HHGP which is a -20% loser since the initial post pre 2009,TUES +58% gainer and HKN -35% since its December post when it was less than tangible assets however. I think PARL was on the blog in 2007 or 2008 to but I didn't go back that far and a search didn't turn it up. It would be a looser from then. The rest were fresh for 2009.
This might sound a little weird but I think I've said this before. I really had no idea what I was doing with net-nets before around mid-2008. In 2007 when I started following them and most of 2008 I was just feeling them out. From mid 2008 on there are a lot of winners to though of course.
These returns below were calculated with the potential buy-in starting the day after it was on the blog in 2009 because I didn't always post during market hours. These returns assume one bought that next day and sold at the stocks high afterward. The likeliness of selling at the high is not highly likely but had one decided to protect the potential profits and sell on the way up it would have been very possible to have come out with a good chunk of the bulk of those profits. About all of these I calculated about 3 weeks ago so some of them are probably up a lot more since then. SMRT hit 10.50 for example. The ones with technicals next to them were ones that technical analysis had a major role in.
25 winners
4 losers
Winners
PIR 1,600% technicals
SMRT 670%
SWIR 285%
TUES 236%
PXG 293% technicals
MSON 178% technicals
VVTV 194%
HHGP 156%
CACH 150%
AERG 100% in 1 day technicals
ANAD 96% technicals
GSIG 77% technicals
NLS 58% technicals
MLR 48%
CALL 45%
PARL 42%
HURC 40%
FSII 40% technicals
LDIS 28% technicals
JOB 26%
AEY 17%
SPAR 20% technicals
IFON 19% technicals
HKN 18%
IVA good run .50 to .70 but I think was to illiquid
NSTR .05%
Losers
CDCO -5%
ADGF -19%
RFIL -25%
QLTI -53%
SKX -46% stock crashed after post. Maybe a little to hard on this one because if doubled down off March lows it went to 14 as of now.
I'm going to start tracking the performance of my net current asset stock aka net-net picks better from here out. For it to be a pick I'll do a post on it and say it is a buy at such and such price. I'll also add it to this portfolio here. I'm pretty sure this can be viewed by anyone. I may also add none net-nets from time to time. I'm not liking Tickerspy so far because I haven't figured out how to even sell a position with it. I started a Marketocracy portfolio to which I think I like better but the $1 mil it gives me to manage is a bit much to just show how I can trade these net's.
If you've been paying attention to my net-net posts, for months now I have only been putting a net-net up if it is worthy of an actual buy very soon me. Since 2007 I have put up a lot of net-net's as potentials with my thesis on them but didn't always pound the table on them as a buy that day. I'd usually run through the good I saw and the bad. I was good then but I am even better now.
From here out my skill with stock picking will be a little more on display be it turn out good or bad. Some time in the future I may switch it over to Covestor.com. Covestor actually taps into your broker so with them there is the most complete transparency possible. For now though I feel like posting on them around the same day I trade them will do. I put up FSII ahead of time because that set-up was so good I wanted put out a heads up. I think the bulk of you that read my blog are here for net-net's and value plays. It's not always easy for me to post up an entry for a net-net trade in real-time on the same day so I might just do these watches. I don't keep as close an eye on net-net's and deep value day to day as I do my other watchlists. I trade a lot of different strategies.
I brought up earlier that I want to start charging a yearly or monthly subscription for my net-net picks. If I go that route it will still be months off. You will also have the opportunity to track my progress better before deciding if $5-$8 a month is worth it. As you can see since 2008 it has been going well and I've actually even stepped up my proficiency lately.
I've only been following net-net's since 2007 and have made really big progress since just 2008 in them. I have kind of gotten in a groove on which ones to drill down on with the fundamental analysis and focus on. Incorporating technical analysis as a tool in my various strategies has also been very significant. I am a very different investor and trader with net-net's and approach them differently than most investors who work in them. I believe that has really helped me identify some of the best performers better.
full disclosure: no positions
This might sound a little weird but I think I've said this before. I really had no idea what I was doing with net-nets before around mid-2008. In 2007 when I started following them and most of 2008 I was just feeling them out. From mid 2008 on there are a lot of winners to though of course.
These returns below were calculated with the potential buy-in starting the day after it was on the blog in 2009 because I didn't always post during market hours. These returns assume one bought that next day and sold at the stocks high afterward. The likeliness of selling at the high is not highly likely but had one decided to protect the potential profits and sell on the way up it would have been very possible to have come out with a good chunk of the bulk of those profits. About all of these I calculated about 3 weeks ago so some of them are probably up a lot more since then. SMRT hit 10.50 for example. The ones with technicals next to them were ones that technical analysis had a major role in.
25 winners
4 losers
Winners
PIR 1,600% technicals
SMRT 670%
SWIR 285%
TUES 236%
PXG 293% technicals
MSON 178% technicals
VVTV 194%
HHGP 156%
CACH 150%
AERG 100% in 1 day technicals
ANAD 96% technicals
GSIG 77% technicals
NLS 58% technicals
MLR 48%
CALL 45%
PARL 42%
HURC 40%
FSII 40% technicals
LDIS 28% technicals
JOB 26%
AEY 17%
SPAR 20% technicals
IFON 19% technicals
HKN 18%
IVA good run .50 to .70 but I think was to illiquid
NSTR .05%
Losers
CDCO -5%
ADGF -19%
RFIL -25%
QLTI -53%
SKX -46% stock crashed after post. Maybe a little to hard on this one because if doubled down off March lows it went to 14 as of now.
I'm going to start tracking the performance of my net current asset stock aka net-net picks better from here out. For it to be a pick I'll do a post on it and say it is a buy at such and such price. I'll also add it to this portfolio here. I'm pretty sure this can be viewed by anyone. I may also add none net-nets from time to time. I'm not liking Tickerspy so far because I haven't figured out how to even sell a position with it. I started a Marketocracy portfolio to which I think I like better but the $1 mil it gives me to manage is a bit much to just show how I can trade these net's.
If you've been paying attention to my net-net posts, for months now I have only been putting a net-net up if it is worthy of an actual buy very soon me. Since 2007 I have put up a lot of net-net's as potentials with my thesis on them but didn't always pound the table on them as a buy that day. I'd usually run through the good I saw and the bad. I was good then but I am even better now.
From here out my skill with stock picking will be a little more on display be it turn out good or bad. Some time in the future I may switch it over to Covestor.com. Covestor actually taps into your broker so with them there is the most complete transparency possible. For now though I feel like posting on them around the same day I trade them will do. I put up FSII ahead of time because that set-up was so good I wanted put out a heads up. I think the bulk of you that read my blog are here for net-net's and value plays. It's not always easy for me to post up an entry for a net-net trade in real-time on the same day so I might just do these watches. I don't keep as close an eye on net-net's and deep value day to day as I do my other watchlists. I trade a lot of different strategies.
I brought up earlier that I want to start charging a yearly or monthly subscription for my net-net picks. If I go that route it will still be months off. You will also have the opportunity to track my progress better before deciding if $5-$8 a month is worth it. As you can see since 2008 it has been going well and I've actually even stepped up my proficiency lately.
I've only been following net-net's since 2007 and have made really big progress since just 2008 in them. I have kind of gotten in a groove on which ones to drill down on with the fundamental analysis and focus on. Incorporating technical analysis as a tool in my various strategies has also been very significant. I am a very different investor and trader with net-net's and approach them differently than most investors who work in them. I believe that has really helped me identify some of the best performers better.
full disclosure: no positions
August 8, 2009
Respect The Trend Line
Counter to anticipated breakdown. Hammer followed by hammer on higher volume. continued...
Counter to anticipated breakdown. Bullish signal.
full disclosure:no positions
July 30, 2009
Oil Technical Analysis
Crude oil has really been trading well on technicals lately. It's actually been trading on technicals to the T. So easy to read the important spots. Here is an older technical trade set-up on oil that turned into a good trade for me.
I was actually going to post this a day ago the night before the beating it took yesterday. Sorry about that. Anyway, I actually missed the trade because I wasn't watching oil.
The first circle on the left is a somewhat weak shooting star candle. Just means sellers were particularly strong by the end of the day. Buyers were not in control. The significance was it was at the peak of price resistance. Next circle. Big doji right at resistance. Very bearish. The doji means there was a battle between buyers and sellers and it reflects major indecision in the marketplace. When a doji occurs at the extreme end of a trend it often indicates a reversal in trend. I noticed going back a lot of months a doji was a good signal of an earlier trend change to. Both of these clues taken together leads the chart to read more downside. It definitely happened after that doji. Yesterday was a huge drop. That day isn't on this chart but USL closed at 35.50. I think oil finished at 62 a barrel.
Also, if you are going to go long on oil for a longer term trade from what I understand USL tracks better than USO because of the way they rollover the contracts.
disclosure: no position USL
I was actually going to post this a day ago the night before the beating it took yesterday. Sorry about that. Anyway, I actually missed the trade because I wasn't watching oil.
The first circle on the left is a somewhat weak shooting star candle. Just means sellers were particularly strong by the end of the day. Buyers were not in control. The significance was it was at the peak of price resistance. Next circle. Big doji right at resistance. Very bearish. The doji means there was a battle between buyers and sellers and it reflects major indecision in the marketplace. When a doji occurs at the extreme end of a trend it often indicates a reversal in trend. I noticed going back a lot of months a doji was a good signal of an earlier trend change to. Both of these clues taken together leads the chart to read more downside. It definitely happened after that doji. Yesterday was a huge drop. That day isn't on this chart but USL closed at 35.50. I think oil finished at 62 a barrel.
Also, if you are going to go long on oil for a longer term trade from what I understand USL tracks better than USO because of the way they rollover the contracts.
disclosure: no position USL
July 24, 2009
Dow Jones Index Technical Analysis
I pulled out a longer term chart of the Dow and there is what looks like a potential rounding bottom formation and failed signal on this last breakdown. Both of these are bullish. The fundamentals are hard for me to get a hold of here on a lot of stocks and the economy. I'd say stock prices are more likely to be overvalued fundamentally. I also strongly believe we will be in a range-bound market for many years. I'd be very surprised if we saw new highs on the indices anytime this year or next year. I'd actually be scared because I fear what the next crisis will be like. I think the economy and stocks should have cooled off and consolidated with the savings and loan crisis at the least.
All of that totally conflicts with the current market forces that are driving stock prices higher. I don't think market forces are always intelligent but using technicals can give me a better read on the short and mid-term direction. I don't have much experience with the indices technically so I'm treading pretty lightly here. One type of bottom formation is a rounding bottom. It looks very similar to the long term chart on the S&P and Dow. Confirmation would be about 10,000 on the Dow.
I like this next one the most right here. We were stuck in that range from May until just recently when it looked like the market was going to breakdown. The arrow points to that move. We actually did make a new low there below the chop. Then those sellers and skeptics got wiped out as the market forced them higher and prevented a breakdown. That was the failed signal. What that means is the strength here is very strong. If it can't go lower we can only go higher technically. This is beginning to be confirmed as new highs are being made out of this range signaling more upside potential. If we hold these highs or retest and run there could be much more upside in this rally. Really though, a no brainer time to go bullish and get long was when the failed breakout pushed above the trend support line. I didn't even think about the failed signal because I was expecting more lows and didn't flip the picture around which this chart says to do.
All of that totally conflicts with the current market forces that are driving stock prices higher. I don't think market forces are always intelligent but using technicals can give me a better read on the short and mid-term direction. I don't have much experience with the indices technically so I'm treading pretty lightly here. One type of bottom formation is a rounding bottom. It looks very similar to the long term chart on the S&P and Dow. Confirmation would be about 10,000 on the Dow.
I like this next one the most right here. We were stuck in that range from May until just recently when it looked like the market was going to breakdown. The arrow points to that move. We actually did make a new low there below the chop. Then those sellers and skeptics got wiped out as the market forced them higher and prevented a breakdown. That was the failed signal. What that means is the strength here is very strong. If it can't go lower we can only go higher technically. This is beginning to be confirmed as new highs are being made out of this range signaling more upside potential. If we hold these highs or retest and run there could be much more upside in this rally. Really though, a no brainer time to go bullish and get long was when the failed breakout pushed above the trend support line. I didn't even think about the failed signal because I was expecting more lows and didn't flip the picture around which this chart says to do.
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