Monday, February 21, 2011

Weekly Review of Stockcharters: Views on the Rally

Has the 'endless' rally an end? Have the Stockcharters anything to add?

Robert New of TheInformedTrader looks for pullbacks when the RSI hits 70. When such pullbacks do occur they find support when the RSI reaches 50.


But when the rally is strong, RSI's can remain extended for weeks (and months).


The Russell 2000 will soon be at its 2007 highs.


No Index charts from David Colletti, but lovers of stock breakouts will find something of interest in his chart list (StockTradersHQ.com). Grupo Financiero Gallicia (S.A.) is enjoying a very nice consolidation above $14.


Yong Pan of Cobrasmarketview shows most breadth is decidely neutral (and certainly not overboguht or toppish)


Yong's mechanical trading model has struggled on recent dips.


Treasury yields playing off the Symmetrical Triangle breakout; measured move target still a possibility and a test of 40 a likely short term test.


Richard Lehman of The Channelist offers his words of wisdom/caution.

2/19 -- For domestic equities, the bubble grows. Short term trends remain perfectly intact, even after three months with no correction. Small caps are back in their groove and large caps are back at the upper lines of long term channels again with stochastic measures at upper extremes (i.e. overbought). The Fed is taking the entire country for a hot air balloon ride. Can we trust that it knows how to land it?

Elsewhere, China may be getting to the end of its bounce as it approached the upper long term channel line, but gold is back in its up groove and oil (USO) is just starting to bounce.

Around the country, every portfolio manager is loaded to the gills now with equities and trying to get even more in their portfolios before the quarter ends next month. they are all thinking the same thing -- ride the Bernanke wave but make sure they get out before everyone else heads for the exit. Sound like a tenuous situation to you?

2/11 -- Rise in the dollar is keeping gold and oil down but doesn't appear to be able to bring stocks down in the US. Others, however, like China and India are not finished correcting from November.

2/7 -- Large and small caps are both accelerating to the upside on the 5-min charts, but the large caps appear to have hit the upper lines on their hourlies. Stochastics are at upper extremes and volatility is at lows. Its tough to go against this freight train, but technically, US equities are very extended.

Also, USO hit its lower short term line and is bouncing.

Has a chart which shows the Dow at channel resistance (different to my own take)


Michael Eckert of http://elliottwavetrendsandcharts.com offers a narrowing wedge with diverging technicals and a likely measured move EWT finish (of a consolidation - not a trend wave).


A converging coild also playing out on the S&P 60-minute chart (this time a fifth wave top of a trending wave)


Finally, Anthony Allyn of elliottwavehound.com is also pointing to a 60-min top in the S&P, but with a different wave count.


Not much change to what has been said before.

Follow Me on Twitter

Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Zignals Trading Strategy Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.

Zignals offers a full suite of FREE financial services including price and fundamental stock alerts, stock charts for Indian, Australian, Frankfurt, Euronext, UK, Ireland and Canadian stocks, tabbed stock quote watchlists, multi-currency portfolio manager, active stock screener with fundamental trading strategy support and trading system builder. Forex, precious metal and energy commodities too. Build your own trading system and sell your trading strategy in our MarketPlace to earn real cash.

You can read what others are saying about Zignals on Investimonials.com.

JOIN US TODAY - IT'S FREE!

 
f9229fcfd1b1390be00cfccc86c90349c93a4179bf4227457c