Investing Research

Dow Transports: Generationally Overbought. What’s Next?

Though backed up against long-term trend line resistance, the Dow Jones Transportation Average (DJTA) continues to grind higher in 2014,  moving from strength to strength in it’s largest nominal and real cyclical move higher since at least the mid-1980s. As a result “The Transports” have entered a rarefied, “persistently overbought”

Recent Posts

S&P 500: Magnet at 2000 Setting Stage For Volatility Breakout

Despite – or rather, because of – Tuesday’s pop, a widely followed measure of volatility on the S&P 500 just printed it’s lowest value since January 4, 2007. The SPDR S&P 500 ETF (SPY) Daily Bollinger Bands - a gauge of the standard deviation of the index’s closing value from a given (usually 20-period) moving average -  closed today with a bandwidth of only .0143. This 7 year low – surprisingly lower than even Q2

Nasdaq 100 Breakout: Watch That Retest

Over the past few months, I’ve written several pieces on the Nasdaq 100′s outperformance and leadership position. And just last month, I wrote about the Nasdaq 100 breakout above 4000. That breakout helped lead the Dow Jones Industrial Average and S&P 500 to new highs. But lost in all the excitement is the technical understanding that most breakouts get tested… whether it be sooner or later (from my post on 8/19): Now before

Dow Transports: Generationally Overbought. What’s Next?

Though backed up against long-term trend line resistance, the Dow Jones Transportation Average (DJTA) continues to grind higher in 2014,  moving from strength to strength in it’s largest nominal and real cyclical move higher since at least the mid-1980s. As a result “The Transports” have entered a rarefied, “persistently overbought” state on its monthly chart.  Since the Crash of 1987, DJTA has gone through 9 “persistently overbought” periods, defined here

Traders: Stay Focused, Tune Out The Noise

No doubt, the tension on the tape is real. Stocks are attempting to consolidate near the highs (some indices better than others) with the Fed, Alibaba IPO, and the Scotland independence vote forthcoming. With all this in toe, social media is abuzz  about how it’s all going to go down. Needless to say, this likely isn’t the week to be making huge bets based on emotion. And it’s also not

WTI Crude Oil Traders: Time To Consider Covering Shorts

On August 15th, I wrote a post for See It Market about waiting for a bounce in WTI Crude Oil Futures (or related exchange traded products) before going short. If you happened to sell into the 8/21 – 8/29 rally, I believe the timing is right to consider taking a partial or full profit here. Perhaps there is more downside, but being generally conservative myself, I’d probably step out of this market

Emerging Markets (EEM) Underperformance: Charts In Focus

The Emerging Markets sector has been a tricky play for active investors. 3 failed rallies in 3 years has left many with a poor taste in their mouths. And once again, the rally is on. Is it for real this time? The Emerging Markets ETF (EEM) has put together a strong rally out of the February bottom and is currently attempting to breakout above key resistance. But EEM has a few issues to

Twitter (TWTR) Strong On Debt Offering; Key Fibs Loom

Last week, Twitter (TWTR) announced that it had raised $1.8 Billion in a convertible note offering. This sent the stock higher and gave it some support throughout the week. Twitter closed the week up 2.8%, a very strong performance considering the equity markets were down for the week. By all accounts, Twitter is striking while rates are still low. But regardless of the merits of the deal, I found one technical nugget

3 ETFs For Trading Japanese Equities Amid Yen Weakness

There have been a couple of developments in the Japanese markets that traders are (or should be) monitoring. In the equity markets, there is a bullish consolidation pattern developing that active investors with an intermediate-term horizon may benefit from. Yet, at the same time, Japanese equities investors will need to keep an eye on the currency market with a focus on the impact of a weakening trend in the Japanese Yen’s value to the US Dollar.

Recognizing When You Are In Trading Tilt

Tilt is a poker term for a state of mental or emotional confusion or frustration in which a player adopts a less than optimal strategy. Do you think this can apply to the markets as well? Absolutely it can. Have you ever had a period of trading where nothing seems to go your way and you start to doubt your process and your decision-making? Well, that is being in Trading

Is The US Dollar Setting Up For Another Move Higher?

The US Dollar has the attention of the global financial markets, especially the commodities sector. Just check out the action in Grains, Oil, and Precious Metals. Earlier this week, I highlighted the weakness in Gold and Silver. Surely a function of a stronger US Dollar. So, is the US Dollar setting up for another move higher? Let’s see what the chart is telling us and check in on some key Fibonacci