Posts Tagged ‘Big Chart Review’

Monday Market Movement – The Big Chart Review

Well, we sure have come a long way in two weeks!

Here’s a great selection from our Chart School files that gives you a nice visual overview of the S&P from Larry at Ichimoku Charts:

 
As I mentioned in the weekly wrap-up, having come to the very top of our predicted trading range, we had no choice but to grit our teeth and go short into the weekend, ratcheting up our DIA coverage to balance the overall virtual portfolio bearish over the weekend.  There was nothing fundamental in the shift other than the overall fundamentals that WERE NOT being reflected in the (perhaps) overly exuberant rally of the past two weeks.
 
As I said in the post: "We have another heavy week of earnings ahead of us and we also have heavy data next week, including the Q2 GDP on Thursday.  We have New Home Sales on Monday, Consumer Confidence and Case-Shiller on Tuesday.  Wednesday is Durable Goods and the Beige Book all leading up to the GDP for April, May and June – which will be interesting to say the least.  It’s going to be both exciting and informative but I’m sure sleeping better knowing we are well-covered over the weekend!"
 
We did, in fact, have a nice, relaxing weekend as we were able to review our positions and discuss the pros and cons of the market.  John Mauldin wrote an excellent piece called "The Statistical Recovery" and points out that, as Tim Knight did in "Legends of the Fall," seemingly spectacular rises off a deep bottom are not necessarily "evidence" of a recovery.  In short – beware the dead cat bounce – something we had EXPECTED back on July 11th, when we first predicted this "rally."  Has the cat exceeded our expectations?   No, 9,100 was always our Dow target for this bounce – we just didn’t think we’d get there in just 10 days of trading! 
 
In that post at the bottom of the sell-off, I asked: "Is the current panic justified?  What’s really changed in the last 30 days?  Obviously, there were great attempts being made to push us up and over the top during the early part of June - the media pandering, the constant "stick saves," Cramer’s idiocy, Goldman Sach’s $85 oil call – all attempts to pull investor dollars off


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Monday Melt-Down, The Fallen (Big Chart Review)

What a disaster!

Once again we are in a market that environment that reminds me of the Simpsons episode where Homer jumps over a gorge, crashes, is taken up by a helicopter (Ben) smashing against the wall along the way only to fall all the way from the top again.  Pain, pain and more pain every time we try to get long.  Today we finished near 11-year lows on the Dow and S&P, so much for that decade of savings…. 

I said this morning that we had a "wall of worry" to climb this week and we didn't get very far up it before falling off a market cliff of our own.  Fortunately, as I mentioned in the morning, we went pretty bearish into Friday's close and I said at the end of the morning post "we’re certainly not going to be impressed by anything under 1.25% today."  It's very important to have a trading plan and we peaked out right at the open, well below our 1.25% target.  My opening comment at 9:36, despite the "rally" was:  "AAPL and the Qs not doing too well this morning.  Financials up 3% already, SKF below $180 .  We need a nice move in the Transports to shut up those Dow Theory people but this is a very weak morning move so far.  Dollar is strong and that’s keeping us down (stocks are a commodity) but weak is weak so, like I said, roll up the long puts when you can and no need to cover the other half with short puts until we pass 1.25% at least."

Nonetheless our F play went well as an agreement with the UAW was announced at 9:44 giving us a quick trip to $1.90 before pulling back to a 10% gain on the day.   We bottom fished a little on UNH and X but I said to members at 11:39: "Watch out if $7.40 breaks on XLF, that can drop us 5% fast in the financials.  Hopefully it will hold."  XLF finished the day down 3.5% but we ended up deciding it may be a little overdone.  We shorted FAS and that went well but then we tried to day-trade them to the upside and that led to two aborted attempts to go long as we were trying to catch a wave up that never came.  It was all over at…
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Zero Hedge

The Danger Of Deeper OPEC+ Cuts

Courtesy of ZeroHedge View original post here.

Authored by Nick Cunningham via OilPrice.com,

OPEC+ agreed to cut production by 500,000 bpd, sending oil prices higher on Friday. During mid-day trading, WTI was just shy of $60 per barrel, and Brent moved closer to $65.

In total, the 1.2 million-barrel-per-day (mb/d) cuts from OPEC will rise to 1.7 mb/d. Those details had been reported on Thursday. But when OPEC+ made it official on Friday, Saudi Arabia also assured the market that it would continue with its voluntary cuts beyond what is requ...



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Phil's Favorites

The Myth Of The "Great Cash Hoard" Of 2019

Courtesy of Lance Roberts, RealInvestmentAdvice.com

Tell me if you heard this one lately:

“There’s a trillion dollars in cash sitting on the sidelines just waiting to come into the market.” 

No.

Well, here it is directly from the Wall Street Journal:

“Assets in money-market funds have grown by $1 trillion over the last three years to their highest level in around a decade, according to Lipper data. A variety of factors are fueling the flows, from higher money-market rates to concerns over the health of the 10-year economic expansion and an aging ...



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Kimble Charting Solutions

Are Bank Stocks Sending Bullish Message To Investors?

Courtesy of Chris Kimble

Just as the health of the banking sector is a big deal to the economy, it’s equally important to the S&P 500 (SPY) and broader stock market.

Although the bull market has grinding higher, it’s awaiting confirmation from the banks and banks stocks.

Today’s chart is of the S&P 500 Bank ETF (KBE) and shows how the banks are at an important juncture in time and price.

KBE (the bank ETF) is testing the upper end of a falling channel, offering bulls an opportunity for a breakout – see point (2).

The banks were at a similar juncture nearl...



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Insider Scoop

KalVista Shares Sink On Failed Mid-Stage Study Of Diabetic Macular Edema Drug

Courtesy of Benzinga

Shares of thinly-traded micro-cap biotech Kalvista Pharmaceuticals Inc (NASDAQ: KALV) are seen moving to the downside Monday.

What Happened

Massachusetts-based KalVista, which focuses on developing small molecule protease inhibitors, said a Phase 2 study that evaluated its KVD001 in patients with diabetic macular edema, who were poor responders to previous treatment with anti-VEGF t...



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Digital Currencies

The Road To Retirement: Millennials Put Their Faith In Bitcoin But Goldman Says Go With Gold

Courtesy of ZeroHedge View original post here.

"Drop Gold" - the ever-present tagline of Grayscale's Bitcoin Trust TV commercial - appears to be working its magic on a certain cohort of society.

2019 has seen assets under management in GBTC soar...

Source: Bloomberg

And for Millennials, according to the lates...



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Lee's Free Thinking

Chart Shows the Fed Ramping Up Not QE - Funding Almost All Treasury Issuance

 

Chart Shows the Fed Ramping Up Not QE – Funding Almost All Treasury Issuance

Courtesy of Lee Adler, Wall Street Examiner 

The Fed is ramping up “Not QE” .

The Fed bought $2.2 billion in notes today in its POMO, “not QE,” operations. Actually $2.15 billion because they sold back a whole $50 million. Must have been a little glitch in the force.

This brings the Fed’s total outright purchases of Treasuries to $170 billion since it started Not QE, on September 17.

It also did $107 billion in gross new repo loans to Primary Dealers to buy Tre...



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Chart School

Silver stock taking the sector higher

Courtesy of Read the Ticker

As the US economy begins to show late cycle characteristics like: GDP slowing, higher inflation, higher wage costs, CEO confidence slump. 

Previous Post: Gold Stocks Review

The big players in the market are looking for the next swing off good value lows. This means more money is finding it way into the gold and silver sector, and it is said gold and silver stocks actually lead the metal prices.

The cycle below shows prices are ready to move in the months ahead (older chart re posted).


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Members' Corner

Sacha Baron Cohen Uses ADL Speech to Tear Apart Mark Zuckerberg and Facebook

 

Sacha Baron Cohen Uses ADL Speech to Tear Apart Mark Zuckerberg and Facebook

By Matt Wilstein

Excerpt:

Sacha Baron Cohen accepted the International Leadership Award at the Anti-Defamation League’s Never is Now summit on anti-Semitism and hate Thursday. And the comedian and actor used his keynote speech to single out the one Jewish-American who he believes is doing the most to facilitate “hate and violence” in America: Facebook founder and CEO Mark Zuckerberg.

He began with a joke at the Trump administration’s expense. “Thank you, ADL, for this recognition and your work in fighting racism, hate and bigotry,” Baron Cohen said, according to his prepared...



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The Technical Traders

VIX Warns Of Imminent Market Correction

Courtesy of Technical Traders

The VIX is warning that a market peak may be setting up in the global markets and that investors should be cautious of the extremely low price in the VIX. These extremely low prices in the VIX are typically followed by some type of increased volatility in the markets.

The US Federal Reserve continues to push an easy money policy and has recently begun acquiring more dept allowing a deeper move towards a Quantitative Easing stance. This move, along with investor confidence in the US markets, has prompted early warning signs that the market has reached near extreme levels/peaks. 

Vix Value Drops Before Monthly Expiration

When the VIX falls to levels below 12~13, this typically v...



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Biotech

Why telling people with diabetes to use Walmart insulin can be dangerous advice

Reminder: We are available to chat with Members, comments are found below each post.

 

Why telling people with diabetes to use Walmart insulin can be dangerous advice

A vial of insulin. Prices for the drug, crucial for those with diabetes, have soared in recent years. Oleksandr Nagaiets/Shutterstock.com

Courtesy of Jeffrey Bennett, Vanderbilt University

About 7.4 million people ...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Promotions

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Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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