Showing posts from August, 2018

Vacation until September 1st

On holidays until September 1st. How will the market be when I return? If you haven’t already  Follow Me on Twitter Dr. Declan Fallon is a blogger who trades for education on eToro and can be copied for free. Investments are held in a pension fund as buy-and-hold. .

Semiconductors at Triangle Support; Dow Jones tags 50-day MA

Sellers returned today as bulls and bears tussle for control. With the constant back-and-forth, the short-term moves become more difficult to define, making it necessary to take a step back and look at the big picture. The Semiconductor Index is at one such juncture. The index finished the day at rising support defined by the April and July swing lows. Wednesday's spike low illustrates underlying demand - offering a buying opportunity; stops on a loss of 1,321. The initial target is 1,420 but a larger breakout could deliver a lot more. The only negative on the day was the net bearish turn in technicals as intermediate-term stochastics [39,1] crossed below the mid-line into bearish territory.  However, a rally to triangle resistance would likely reverse this.

Small Caps Recover Strongly as Nasdaq Breakout Stabilizes

Buyers made a strong defense of the Russell 2000 as yesterday's losses were reversed - and then some. However, there is still some 2-3 days worth of buying required before it can be said to be challenging new highs. Weak shorts will have covered today but more staunch shorts will be feeling nervous; a move above 1,710 is a cover of any short.

Sellers Don't Relent

Markets tilted in favour of bears although there was no expansion on the selling action from Friday. The S&P undercut the 20-day MA but volume was down a little on Fridays. However, the selling did come with a fresh 'sell' trigger in On-Balance-Volume and relative performance against Small Caps is teetering towards a new 'sell' trigger.

Large Caps Ease Away From Resistance

Sellers closed the week out but it was Large Caps which experienced the most significant loss on the day. The S&P gapped away from the channel resistance tag reversal. The index was left at its 20-day MA as it appears to be shaping another move to channel support. This was supported by a MACD trigger 'sell', a 'sell' trigger in -DI/+DI and higher volume distribution. 

Semiconductors Continue to Approach Resistance

There wasn't a whole lot to today's action except for further gains in the Semiconductor Index. Relative performance is positive and technicals are all in the green.

Indices Offer Shorting Opportunities

The rallies of last week continued with low volume gains. For those looking for new trade opportunities, there are potential near-term shorting trades available - or a chance to take profits for existing long trades. The S&P tagged channel resistance despite net bullish technicals. The gains were small but resistance has been tagged in what could mark a reversal play.

Thursday's Gains Consolidate

Large Caps continued to press Thursday's advantage with gains to send indices towards recent swing highs. The S&P remains on course to reach channel resistance and post new highs with technicals net bullish and relative performance in the ascendancy against Small Caps.

Frustrating Market; Large Caps Strongest

Just when it looks like Shorts have a handle on this market bulls go and Make America Great Again.  Market rallies undo much of the weakness over the last three days and give bulls something to play with. Although bulls are not yet out of the woods. The Semiconductor Index was my bearish choice for today and the index logged a 1% gain. While it didn't reverse all of its 'bull trap' it did push markets away from its 200-day MA; action since last June has been scrappy but it has managed to edge a little higher each day. I would still edge in favor of shorts but another day like today would end this and set up a challenge of triangle resistance.

Indices Struggle To Recover Monday's Losses

While today ended as a day for bulls to take satisfaction, there is still plenty of work to do to get indices back to the multi-year highs which were challenged last week. The losses endured on Friday and Monday were enough to drive technical breaks, but not all of these were undone by today's buying. The S&P managed to retain its breakout as buyers looked to defend its 50-day MA. Volume climbed to register an accumulation day as supporting technicals remained in the green.


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