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Consolidation trading once more... Treasuries

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Large caps look set to finish the week inside their recent consolidations. The S&P and Dow both have well formed pennants which - if they were to follow trend - will break down. Only tech averages look on course to maintain this week's breakouts. Nasdaq below The global economic slowdown with falling commodity prices strongly suggests inflation is no longer a problem; so interest rate hikes are unlikely. The 10-year yield is marking an important test of 5-month support and the 200-day MA; assumptions point to a bounce, but my hunch says lower from here. Remember - price action always trumps opinion (no matter where you read it) **Correction ** Removed my gold comments because ehhh.... I referred to a 2006 chart. Slap on wrist. Nobody noticed (probably not a good thing!) Get the Fallond Newsletter Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website

Oil set for the 200-day MA

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The best news for the markets is the steady drip of losses in oil prices. Yesterday's resistance breaks and challenges on 50-day MAs will be helped by the void of support in oil. Other than the reaction low in late April / early May c$110 there isn't a whole lot to prevent oil prices from testing its 200-day MA. This should translate into higher prices for the broader markets. Get the Fallond Newsletter Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website

Bullish Percents remain mixed

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Significant gains for the market helped undo the bearish threat which Monday's support breaks promised. However, not all the damage was undone; bullish percents of large caps are still bearish: Although in effect, what we have are sideways patterns in the markets. I would not be surprised to see markets spend their entire August in this range. Will the Russell drift upwards as it did in May? What of the Nasdaq? 50-day MA very near Same with the Dow: Get the Fallond Newsletter Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website

Weekly review of the Stockcharters

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After a rather chilly August bank holiday weekend in Ireland it is back to the market. I'll start with a belated weekly Stockcharts.com review - although yesterday's action was more telling than last weeks. Richard Crockett's list leads with what looks to be a bearish cross of the 5-day EMA by the 3-day EMA for the S&P bullish percents: Gold miners taking it on the chin: Maurice sees things can go either way: Use Extreme Caution Here! This market can go either way now! The selloff today came right down to the key rising support trendlines on the DJIA and the S&P 500 in the 60-minute timeframe. There are now mixed signals between the 60-minute and daily charts. The 60-minute charts have now reset with the MACDs near zero and the stochastics oversold as prices are resting on the rising trendlines. I am watching the MACD rising trendlines in the 60-minute timeframe to see if we get a bounce off of them. However, the daily charts have troubling signs that suggest that

Zignals launches Advanced Stock Alerts - Free for all to use

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Over at Zignals we have done a softly softly launch of Advanced Alerts. An email will be sent to registered Zignals users from yours truly on how to set an Advanced Stock Alert. If you would like to get in on the act, head over to Zignals and register for free . By registering you will get full access to our services and it's features. I have tested a sample Advanced Alert using the in built historical test feature on the Alert service. The findings can be obtained here . Our key aim is to get a dedicated data provider (IDC) in place by mid-August and the latest Silverlight charting also up by then. This will solve many of the problems for our European users on missing stocks (including some US ones unfortunately). The updated charting will also correct the now obsolete version on the site following the latest Silverlight upgrade. Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website

Compuware Corp (CPWR)

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In light of what looks to be a developing sideways pattern in the market I have instead for today a stock to watch. Compuware Corp ( CPWR ) had featured as a newsletter pick for May 19th , and as a free pick for July 21st. It has risen 25% since May and 9% since mid-July and the current 5-day handle looks a good place to raise the prior stop price. I would also set a free stock alert for a price cross above $11.23 as this should see a run to resistance on the weekly chart: The chart shows good volume behaviour with rising volume in the advances and falling volume for declines/sideway action. There may be some concern with the lower volume for the push from $9.24 to $11.21 compared to from $6.97 to $10.42 - but a protective stop would provide the necessary protection. Lovely cup-and-handle on the weekly chart with great relative strength with respect to the S&P: Point-n-figure chart is still running from the May 16th Double Top Breakout with target of $19.50. Option buyers can lo

Bulls vacation! What vacation?

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Sterling work by buyers as a further accumulation day is registered for the rally. Once again looking at 50-day MAs for targets (with the exception of the Russell 2000 which is already there - for that look to the 200-day MA). Comments unchanged from Jul 23rd: Lovely reversal Strong gains, but how will 2,350 hold as resistance? Market needs a breather - action is still very reminiscent of March. Get the Fallond Newsletter Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website

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