Tina Turner – " You better be good to me"
Apparently the English language has more ways to say the same thing than any other language in the world. I guess we were blessed with Shakespeare or finance guys. When things repeat, we have many different phrases for them. There is pattern recognition, repetition, cycles, behavioral finance, following the herd,...
Commodities…to buy or to die?
Here we go again.Great stuff here in the commodity space. I'm getting more bullish after looking at some long term data and comparing it to the current charts. I still think the market needs a rest. The $VIX has been on the low side of the 20 EMA for almost...
Resistance Lines Everywhere…Can We Break Through?
Just check out these charts: Everything is screaming overbought. I think we are in a new uptrend and perhaps we will get a pullback on Greece news. Lumber, Copper, are in great shape. Here we sit. The COMPQ has blown through resistance. The SPX and Dow are testing the resistance...
Candlestick Tails
Well, here we are. Testing the top of the markets again. The intraday price action today was very interesting. The Dow made its high around 10:15 in the morning. It drifted sideways for a few hours, then fell out of bed. All the indexes peaked in a different hour of...
Finding Market Tops
The Never ending question of timing the market is a technicians dream. Knowing when you have hit a high, knowing when you have hit a low. Or knowing your on the wrong side of the trade because the Fed just stepped in. Last week the Fed melted the banks and...
How bonds / currencies affect your stocks
Once again, the USD currency is dominating the market moves today. Slight change in direction in the $USD, and everything followed. The recent pullback in the USD has been aggressive. BUt look at bounce off the fibonacci retracement line. Typically, when things pull back, they pull back to one of...
Waves…what happened?
Today the blog is puzzled. Overbought indicators are rolling over... Telling me to get out of Dodge. Price action....telling me to get out of Dodge. Actual price change, saying things are ok. Since the 19th, Flat, Flat, Up on a Monday, Down on AAPL Day, Up on Fed day, Down...
Metals, materials, and money
Well Yesterdays FOMC meeting was interesting. The data came out earlier than I was expecting.I was also surprised that the Fed was so focussed on generating inflation and avoiding deflation at all cost it seems. Was this QE3? Don't fight the Fed? The Metals market took that to heart. So...
COPPER, GOLD, US DOLLAR… REALLY INTERESTING CORRELATIONS
Look at this collection of charts, all at an interesting place in time Here is the $COPPER weekly. Notice the thin black line right at this $3.80 level. Here is $GOLD. Gold is right at the junction of the 10 week (50 day ) Moving average, the 40 week (...
Is the Ultimate reversal trade finally here?
OK which one am I talking about? THe Nat gas trade or the long bond trade? Well, it's the long bond trade. Here is a picture of the daily zoomed in on the latest time period. So this is clearly a breakout. Again, how can we trade it? Well, we...
Looking for trouble? Chart trouble that is….
Today, Let me present a simple chart of the $SPX from February 1 to August 1,2011. Then let's use the logic for the TSX. Then we'll take it back to the SP500. If we narrow down a chart to a specific time period which marks the top of the market...
Natural Gas stocks…talk about lows…
I'm driving through the gas fields of southern Alberta today. Temperature is -32 C or minus 25 F. How can Natural gas pricing stay this low...I don't know. But here is the real question. How low can these Natural gas stocks go? Can they continue to get bank loans if...
