From: Fallondpicks.com

Mar 25th: Markets finished the week on quiet action as the trend for falling volume continued. In the near term, bulls will look best served by the tech averages, the NASDAQ in particular, as secondary tech indicators [$NASI, $NAA50 and $BPCOMPQ] confirmed earlier crosses in the 5-day EMAs with supporting technical "buy" signals. The overall markets have re-aligned in typical bullish fashion with the Russell 2000 leading the NASDAQ, which leads the S&P (although the Dow is lording it over the NASDAQ). How far the markets can go is anyone's guess; but given the overbought nature of the market (the January-March consolidation did little to relieve such conditions), I suspect not very far.

Gold and silver were the week's star performers; breakouts in CDE, HL, KGC, GFI, PAAS, SIL, and SSRI were icing on the cake for metal miners.

Newsletter stock updates:

Target hit: NCTY hit its Target price, but looks well positioned to continue its gains. Watch how it consolidates around $28 resistance. This March 7th play is considered closed for an 18% gain.

Stop hit: RRI hit its raised stop from December 13th after months of sideways trading. The free Breakout play closed for a 6% loss, the November 21st Subscriber play closed for a 4% gain. The stock did close the day on a doji; marking indecision on the the behalf of bulls and bears.


Popular posts from this blog

Bull Flags for Nasdaq and S&P

Image
The last few days have seen the S&P and Nasdaq consolidate their bounce with 'bull flags'. Both markets are coiling in preperation for a follow through move - presumably higher.  In the case of the Nasdaq,  we have 'buy' triggers in the MACD, On-Balance-Volume and +DI/-DI - although stochastics are struggling to cross the mid-line. The index is outperforing the S&P which should favor a move higher and a challenge of the 50-day MA. 
Read more

"Inverse Hammer" on Russell 2000 Breakout

Image
It was a mixed day for indices with the first indication of a top for the current advance with reversal candlesticks coming into play off opening gaps in markets. The Russell 2000 is looking the most vulnerable as it finally manages to break past the June swing high. With the 'inverse hammer' we have the risk of a possible gap down Tuesday, which would result in an 'evening star' and a likely "bull trap" - feeding into the likelihood of a larger sell-off. 
Read more

'Bear Traps' for the Nasdaq and S&P as Russell 2000 holds above support

Image
Buying in the Nasdaq and S&P delivered important 'bear traps' which in part, probably fueled today's gap highers in these indices. There is still alot of work for bulls to do, not least drive breaks of downward channels - not to mention, clear the first of the key moving averages in the 20-day. But it does give indices some respite from the grinding selling of the last couple of months.  The buying in the Nasdaq didn't register as accumulation, but there is a slow improvement in the technical picture with an upcoming 'buy' in the MACD.
Read more

Archive

Show more