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Weekly Market Commentary: Strong Week

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It was a great week for bulls, a strong end-of-week for indices was supported by similar gains in breadth.  Breadth gains were particularly good as they negated what was looking like a swing high, and a likely market top. The Percentage of Nasdaq Stocks above the 50-day MA has room for upside at 67%, taking out the last swing high.  This indicator peaked at 81% in the early part of 2012, but as a leading indicator it suggests there is still more upside to come. The Nasdaq Bullish Percents have plenty of upside room with resistance around 62.5% and the indicator at 56%.  But there is a lengthy bearish divergence dating back to 2010 which could prove problematic down the road. The Nasdaq Summation Index has only crossed the zero line and offers the largest bullish potential (with no bearish divergences) of all the breadth indicators.  The last swing high was at 659. To get there quickly would require 3-4 weeks of gains, so it's possible we could see the current rally cont

Daily Market Commentary: Powerful Rally

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Positive economic data helped fuel a powerful rally, led by a breakout in the Russell 2000. The Russell 2000 continued to outperform the Nasdaq and S&P as Small Caps cleared resistance defined by April, June and August swing highs. This break sets the groundwork for advances in other indices. The Dow rallied off rising support in a typical trendline bounce.  It also managed a resistance break on higher volume accumulation. The Nasdaq 100 went a step further and managed a new all-time high, also on higher volume accumulation. Technicals are in good shape with the MACD trigger 'sell' close to reversing.  A pullback to 2,800 could offer opportunity for buyers. Even the struggling the semiconductor index was able to regain the 20-day MA. Watch too for a new MACD trigger 'buy'. Looks like the tone has been set after 2 weeks of quiet trading.  Bulls take an early start on proceedings. --- Follow Me on Twitter Dr. Declan Fallon is the Senior M

Daily Market Commentary: Inside Day

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It was a day which had more in common with last week's vacation trading than the start of a new trading week. Indices were little changed on the day, trading in a narrow range on slightly heavier volume. The chief concern was the semiconductor index. It dropped further away from a down-turning 20-day MA, finishing on 390 support. Bulls won't want it to lose much more with the 50-day MA at 383, the last line of defense for bulls. The worry for the Nasdaq and Nasdaq 100 is while they are holding 20-day MA support, the influencing semiconductor index is pulling further away from its own. Both tech averages are operating on a 'sell' trigger in their MACDs, but other technicals are holding the bullish line. Those looking for a long trade can focus on the Dow which is holding rising trendline support having bounced off its 50-day MA. Markets are still vulnerable, although I have taken a long position in the XLU from today's open.  I suspect there is sti

Daily Market Commentary: Small Caps Break

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It was looking like bears were going to set the tone for the first day of September, but bulls were able to put a stint in at the end to lessen the damage. Leading the way was the Russell 2000. Small Caps finished very strongly with a significant shift in relative strength to Small Caps from Tech and Large Caps. The breakout cleared two reaction highs which is good news for other indices looking to break resistance. In the S&P the index was able to edge a close just above the 20-day MA with a supporting bullish trigger for On-Balance-Volume.  The MACD histogram is coming off a swing low and a couple more days of modest bullishness might be enough to see a larger upside move develop. Holding the 20-day MA looks key. The Nasdaq was able to mount a defense of its 20-day MA, closing higher with heavier volume accumulation. With the first day of trading in the bag for September it was a bright start from the key bull market sensitive Small Cap sector. If this move evol

Akamai ($AKAM) and American Railcar Industries ($ARII)

Two more posts available on the Motley Fool.  One on Akamai Technologies and another on American Railcar Industries .

Weekly Market Commentary:Fade from Resistance

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The last week of holiday trading finished with mild losses on light volume. The Dow is trading within a narrow range between 12,875 and 13,335. Whichever breaks first will set the tone for the rest of the year. The Russell 2000 had little so show for the week, gaining just a couple of points. It has the most work to do if sitting on the bull side of the fence. The Nasdaq is poised at resistance with closest weekly support almost 200 points below. Unlike some previous trading weeks, breadth was little changed. It may reflect a swing top for the indices. ---- 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 Trading Strategy Marketplace Leaderboard. The Leaderboard also

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