Posts Tagged ‘bullish market’

The Stock Market’s Scary Day and Almost Magical Close

The Stock Market’s Scary Day and Almost Magical Close

Courtesy of John Nyaradi

Midweek commentary from Wall Street Sector Selector

No doubt today was scary as the markets opened down sharply and traded mostly lower all day in one of the most volatile of recent sessions.  The reason given for the sell off was an economic slowdown in China and worse than expected consumer sentiment.

So it was a scary drop but the most interesting part of the day came at the close when the S&P 500 almost magically closed above the all important 1040 level.  For technical traders, 1040 is something of a magical number because it represents significant support and a level that is now being tested for the fourth time this year.

Chart courtesy of StockCharts.com

In the chart we can see how 1040 on the S&P represents the February, flash crash and June lows and so this is the fourth retest of that all important level.  Everyone “knows” that if the index breaks decisively through this level that lower prices are likely ahead and so one can only marvel at how, after trading as low as 1035 in the late going, the index made a last minute move back above this all important psychological level. 

Also on the top display, you’ll notice that RSI is approaching “30” which is widely considered to be “oversold” and the technical sentiment measurements I follow point to extreme pessimism (after today’s action, who isn’t pessimistic?) which as a contrarian indicator could indicate higher prices ahead for the short term. 

So we stand at a most interesting crossroads.  From here, if the market recovers and holds the 1040 lows, it’s quite likely we could see a rebound rally as we’ve seen three times so far at this level this year.  A break below could lead to further deterioration and significantly lower prices ahead. 

I don’t have a crystal ball, just as no one does, and I can’t foretell the future, but we can make an estimation of probabilities; if 1040 on the S&P holds, the most likely probability based on technical indicators is for higher prices over the short term.     

There’s the bearish side of the market and the bullish side of the market, but as the old saying goes, “the only side that matters is the right side.” 

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John’s disclosure: EWW,TUR, FXI, IYR, SPY Call Option 


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Zero Hedge

Dollar Tumbles As Trump Blasts China, EU "Currency Manipulation", Fed "Tightening"

Courtesy of ZeroHedge. View original post here.

After bouncing yesterday following White House reassurances of Fed independence and PBOC's big weakening of the Yuan fix, the dollar is tumbling again this morning... accelerating after Trump tweeted that "China, EU are manipulating their currencies," adding that Fed "tightening now hurts all that we have done."

China, the European Union and others have been manipulating their currencies and interest rates lower, while the U.S. is raising rates while the dollars gets stronger and stronger with each passing...



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Insider Scoop

10 Stocks To Watch For July 20, 2018

Courtesy of Benzinga.

Some of the stocks that may grab investor focus today are:

  • Wall Street expects Stanley Black & Decker, Inc. (NYSE: SWK) to report quarterly earnings at $2.04 per share on revenue of $3.50 billion before the opening bell. Stanley Black & Decker shares gained 0.98 percent to close at $139.65 on Thursday.
  • Microsoft Corporation (NASDAQ: ...


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Phil's Favorites

Why Comcast and Disney's bidding war for Sky has reached astronomical heights

 

Why Comcast and Disney's bidding war for Sky has reached astronomical heights

Courtesy of John Colley, Warwick Business School, University of Warwick

The bidding war between Comcast and Disney for European pay-TV giant Sky’s operations seems to have paused at Comcast’s latest bid. But not before reaching astronomical heights, reflective of the dubious thinking that is driving a lot of mergers and acquisitions at the moment.

Bidding by the two major US entertainment businesses for Sky had reached US$34 billion – with Comcast trumping Disney’s previous bid in the region of US$32 billion. This is ...



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Chart School

Small Caps Enjoy Best of Action

Courtesy of Declan.

There wasn't a whole lot going on today except Small Caps were able to attract some buyers despite finishing below resistance; bulls have been taking advantage of the 20-day MA test. Today's action coincided with 'buy' signals in the MACD and +DI/-DI.


The S&P held its breakout and today's losses - despite higher volume selling - didn't do a whole lot of damage.

...

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Digital Currencies

Citadel CEO Says Bitcoin Still A "Head Scratcher" But Billionaire Lasry Sees $40,000 Soon

Courtesy of ZeroHedge. View original post here.

Ken Griffin, the CEO and founder of the Citadel hedge fund, has reiterated his negative stance on Bitcoin (BTC) in an interview with CNBC this morning.

Speaking at the Delivering Alpha Conference in New York, ...



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Biotech

How summer and diet damage your DNA, and what you can do

Reminder: Pharmboy and Ilene are available to chat with Members, comments are found below each post.

 

How summer and diet damage your DNA, and what you can do

Bright sun and fatty foods are a bad recipe for your DNA. By Tish1/shutterstock.com

Courtesy of Adam Barsouk, University of Pittsburgh

Today, your body will accumulate quadrillions of new injuries in your DNA. The constant onslaught of many forms of damage, some of which permanently...



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Mapping The Market

Mistakes were Made. (And, Yes, by Me.)

Via Jean-Luc:

Famed investor reflecting on his mistakes:

Mistakes were Made. (And, Yes, by Me.)

One that stands out for me:

Instead of focusing on how value factors in general did in identifying attractive stocks, I rushed to proclaim price-to-sales the winner. That was, until it wasn’t. I guess there’s a reason for the proclamation “The king is dead, long live the king” when a monarchy changes hands. As we continued to update the book, price-to-sales was no longer the “best” single value factor, replaced by others, depending upon the time frames examined. I had also become a lot more sophisticated in my analysis—thanks to criticism of my earlier work—and realized that everything, including factors, moves in and out of favor, depending upon the market environment. I also realized...



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ValueWalk

Buffett At His Best

By csinvesting. Originally published at ValueWalk.

Bear with me as I share a bit of my history that helped me create SkyVu and the Battle Bears games. The University of Nebraska gave me my first job after college. I mostly pushed TV carts around, edited videos for professors or the occasional speaker event. One day, Warren Buffet came to campus to speak to the College of Business. I didn’t think much of this speech at the time but I saved it for some reason. 15 years later, as a founder of my own company, I watch and listen to this particular speech every year to remind myself of the fundamentals and values Mr. Buffett looks for. He’s addressing business students at his alma mater, so I think his style here is a bit more ‘close to home’ than in his other speeches. Hopefully many of you find great value in this video like I have. Sorry for the VHS...



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Kimble Charting Solutions

The Stock Bull Market Stops Here!

 

The Stock Bull Market Stops Here!

Courtesy of Kimble Charting

 

The definition of a bull market or bull trends widely vary. One of the more common criteria for bull markets is determined by the asset being above or below its 200 day moving average.

In my humble opinion, each index above remains in a bull trend, as triple support (200-day moving averages, 2-year rising support lines, and February lows) are still in play ...



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Members' Corner

Cambridge Analytica and the 2016 Election: What you need to know (updated)

 

"If you want to fundamentally reshape society, you first have to break it." ~ Christopher Wylie

[Interview: Cambridge Analytica whistleblower: 'We spent $1m harvesting millions of Facebook profiles' – video]

"You’ve probably heard by now that Cambridge Analytica, which is backed by the borderline-psychotic Mercer family and was formerly chaired by Steve Bannon, had a decisive role in manipulating voters on a one-by-one basis – using their own personal data to push them toward voting ...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

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

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Promotions

NewsWare: Watch Today's Webinar!

 

We have a great guest at today's webinar!

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Just click here at 1 pm est and join in!

[For more information on NewsWare, click here. For a list of prices: NewsWar...



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All About Trends

Mid-Day Update

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

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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About Phil:

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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