Investing Research

Trading The Trend: Keep It Simple

68 Wall Street – those were the days. If you know your history of the US stock market, on May 17, 1792, the stock market as we know it today was initiated with 5 securities traded amongst 24 stockbrokers and merchants. This initial meeting all started under a Buttonwood tree

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Citigroup Adjusts Earnings For Legal Costs, Stock Falls

The financials are one sector that I admittedly stay away from. It’s not that they haven’t performed well enough to garner my interest, it’s just that there’s still an unsettled feeling to the group. From rogue traders to manipulation to lawsuits to government involvement, it all just doesn’t suit me.  And Citigroup (C) did a good job of reminding me of this as they announced that they are adjusting their 3Q

US Dollar: Long Term Prospects Look Good

For six and a half years the US Dollar Index (DX) has trended sideways. The technical signs on the wall favor this trend resolving higher. If that panned out and the next cyclical bull trend were akin to the last one when the 20th century was coming to a close, we’d be looking at upside potential to 121.6. This outlook has implications for foreign exchange traders – there could be

Trading The Trend: Keep It Simple

68 Wall Street – those were the days. If you know your history of the US stock market, on May 17, 1792, the stock market as we know it today was initiated with 5 securities traded amongst 24 stockbrokers and merchants. This initial meeting all started under a Buttonwood tree known today as the Buttonwood agreement. Early years of trading didn’t require early morning wake ups. You have to wonder

Weekly Chart Scan: Using Discipline To Find Market Leaders

The story of a leadership stock doesn’t begin or end with a story of its fundamental profile or how it broke out from a constructive base or continuation pattern. The story begins at how the stock acted at key moving averages and / or price support during pullbacks, particularly as the general market is attempting to bottom. If the technical foundation of the price structure is unsound, the probability of

Facebook Earnings Beat The Street; Investors Sell The News

Social media has come a long ways. Big players like Facebook (FB), Twitter (TWTR), and LinkedIn (LNKD) dominate the social connecting and networking scene. But if investors reaction to Twitter and Facebook earnings are a sign, perhaps the sector is set for some price consolidation. Tonight Facebook reported strong earnings, beating estimates on the top and bottom line. Mobile growth was a big factor and one would think investors would

Grains Rally Into Fed: Corn Prices At Technical Resistance

The Federal Open Market Committee (FOMC) meets today and tomorrow to discuss monetary policy and provide their views on future interest rates. And it seems the Grains sector is tuned in. Select grains such as Corn, Soybeans, and Wheat are rallying today, and have rallied nicely throughout October. But, the sector is at (or nearing) the resistance levels that I wrote about on October 7th. In my opinion, this is one of

Market Masters: How To Manage An Iron Condor Trade

For many professional option traders, iron condors form the basis of how they generate monthly income. Iron condors are a strategy that allows you to profit from sideways moving stocks, but they can also profit if the stock experiences slightly higher or slightly lower prices over the course of the trade. Where beginners get in to trouble is when a stock makes a big move in either direction shortly after

Gasoline Futures Signal Further Relief At The Pump

Gasoline futures have been falling for several months, bringing delight to drivers across the country. Recently, RBOB Gasoline fell below the key level of $2.45. RBOB dropped sharply after breaking that technical level in September, falling to a 4-year low at $2.13. The term structure of RBOB is rather flat near $2.15 through the winter months. Check out the various futures contracts in the table below.   A rule of

US Dollar Index And Select USD Pairs Trade Setups

The week is starting off with some modest US Dollar Index (DXC) weakness, but nothing that was unexpected. However, I have adjusted the wave count to account for this. I am comfortable remaining long in USD/SGD as it is performing better while the US Dollar Index has been selling off. The same goes for USD/JPY and USD/CHF – pairs we will need to keep an eye on for possible longs when DXC

Why The Latest V-Bottom Rally Is Bearish

It’s difficult to argue against the opinion that the latest “v-bottom” rally in US equities has more force and bullish swagger about it than any market leg higher since at least January 2013. Calling it “bearish” sounds like an absurd contradiction.  But is it possible this superficial show of strength – taken in the context of the decline preceding it – is indicative of a more fragile market underneath the surface: