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

Watch: Riots Erupt In Israel As Police Enforce COVID-19 Quarantine, Synagogues Shuttered

Courtesy of ZeroHedge View original post here.

Israeli media is reporting that riots have broken out in Arab as well as some Jewish neighborhoods of Israel over quarantine enforcement. Particularly violent clashes in Jaffa also erupted after police confronted and tried to detain a man for reportedly breaking quarantine.

"Dozens of people are demonstrating and rioting in Jaffa after police questioning of a man who apparently broke his mandatory self-quarantine led numerous residents to gather and confront the officers," the ...



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Phil's Favorites

Governors take charge of response to the coronavirus

 

Governors take charge of response to the coronavirus

Washington state Gov. Jay Inslee ordered all bars, restaurants, entertainment and recreation facilities to temporarily close to fight the spread of COVID-19. Getty/Erika Schultz-Pool

Raymond Scheppach, University of Virginia

Just after every gubernatorial election, but before inaugurations, the National Governors Association organizes a two-day “New Governors School.” Current governors serve as the faculty ...



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Biotech/COVID-19

Governors take charge of response to the coronavirus

 

Governors take charge of response to the coronavirus

Washington state Gov. Jay Inslee ordered all bars, restaurants, entertainment and recreation facilities to temporarily close to fight the spread of COVID-19. Getty/Erika Schultz-Pool

Raymond Scheppach, University of Virginia

Just after every gubernatorial election, but before inaugurations, the National Governors Association organizes a two-day “New Governors School.” Current governors serve as the faculty ...



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ValueWalk

Number of new jobless claims hits another record high

By Gorilla Trades. Originally published at ValueWalk.

In an intra Day note to investors, Gorilla Trades strategist Ken Berman, while commenting on the weekly number of new jobless claims, said:

Q4 2019 hedge fund letters, conferences and more

The major indices are all in the green at midday despite another highly volatile pre-market session. The energy sector has been the clear winner of the morning session, but most of the key sectors are sporting gains despite the grim COVID-19 numbers. The price of crude oil surged higher overnight together with global equities, despite yesterday’s huge U.S. ...



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Kimble Charting Solutions

S&P 500 Price Pattern Similar to 2008 Market Crash?

Courtesy of Chris Kimble

Last week’s sharp rally off the lows, gave bulls some relief.

But if the bulls are going to have reason to cheer, they will need to see another move higher… and fast!

Why? Just look at today’s “weekly” price chart of the S&P 500 Index. 

This key broad-based index broke a 10-year bull market trend line in March. And it’s now kissing the underside of the trend line at (2).

The last stock market crash saw a similar pattern in 2008. And after a failed “...



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Insider Scoop

Nestle CEO Says Snack Foods 'Just As Important As Essential Nutrients'

Courtesy of Benzinga

Global food behemoth Nestle (OTC: NSRGY) is "scrambling to meet demand" to keep the world fed, but doesn't want to take much credit, as "this is our main purpose at this hour," CEO Mark Schneider said Wednesday during a "Mad Money" interview with Jim Cramer.

Nestle...

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The Technical Traders

Are Equities Likely To Rally?

Courtesy of Technical Traders


 

I hope you found this informative, and if you would like to get a pre-market video every day before the opening bell, along with my trade alerts visit my Active ETF Trading Newsletter

Chris Vermeulen

...

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Chart School

Big moving Averages and macro investment decisions

Courtesy of Read the Ticker

When price is falling every one wonders where demand will come in.


RTT black screen Tv videos study the simplest measure of price (simple moving average). What has happen before guides us now. 














Changes in the world is the source of all market moves, to catch and ride the change we believe a combination of Gann Angles, ...

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Members' Corner

10 ways to spot online misinformation

 

10 ways to spot online misinformation

When you share information online, do it responsibly. Sitthiphong/Getty Images

Courtesy of H. Colleen Sinclair, Mississippi State University

Propagandists are already working to sow disinformation and social discord in the run-up to the November elections.

Many of their efforts have focused on social media, where people’s limited attention spans push them to ...



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Digital Currencies

While coronavirus rages, bitcoin has made a leap towards the mainstream

 

While coronavirus rages, bitcoin has made a leap towards the mainstream

Get used to it. Anastasiia Bakai

Courtesy of Iwa Salami, University of East London

Anyone holding bitcoin would have watched the market with alarm in recent weeks. The virtual currency, whose price other cryptocurrencies like ethereum and litecoin largely follow, plummeted from more than US$10,000 (£8,206) in mid-February to briefly below US$4,000 on March 13. Despite recovering to the mid-US$6,000s at the time of writin...



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Promotions

Free, Live Webinar on Stocks, Options and Trading Strategies

TODAY's LIVE webinar on stocks, options and trading strategy is open to all!

Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

Mike will show off the TradeExchange's new platform which you can try for free.  

...

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Lee's Free Thinking

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

 

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

Courtesy of  

The repo market problem isn’t the problem. It’s a sideshow, a diversion, and a joke. It’s a symptom of the problem.

Today, I got a note from Liquidity Trader subscriber David, a professional investor, and it got me to thinking. Here’s what David wrote:

Lee,

The ‘experts’ I hear from keep saying that once 300B more in reserves have ...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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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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