Posts From Andrew Kassen

Andrew Kassen
Andrew has traded privately for over 10 years. Well-studied in technical and quantitative analysis, as a trader he employs a rigorous price-based process for short-term trading of futures (with specialization in the Russell 2000 mini contract, TF) and spot Forex. As a writer his primary interests lie in the ongoing technical analysis of markets and at the intersection of philosophy, cognitive psychology and finance.
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Apple Earnings To Decide Several Key Technical Patterns

Ahead of Q3 earnings after the bell today, Apple (AAPL) is setting up as a technical cliffhanger across multiple timeframes. On a weekly timeframe, AAPL has just broken down from a Symmetrical Triangle back into a harmonic Bearish Bat potential reversal zone (at D, below) it broke above in August. Overthrows above broad-ranging harmonic patterns like this are common. However, the break below Q2/Q3 2014’s rising trend line support coupled with an escalating 6-month

NYSE Composite Breadth: Deeper Stock Market Correction Ahead

A favorite breadth measure of technicians that’s often cited as we search for clues about the underlying quality of rallies and severity of sell offs is the net quantity of New Highs – New Lows among the 2000 or so components that make up the NYSE Composite Index (NYA). There are lots of ways to slice the simple datum NYSE New Highs-New Lows spits out.  One way discussed amidst last week’s sell off

S&P 500 Moving Averages: Is The Rally Cleared for Liftoff?

No sooner did the S&P 500 (SPX) run above it’s 200-Day Simple Moving Average (it’s 3rd longest streak since 1950) end has market sentiment appeared to finally flip into the much sought-after “excess pessimism” of a short-term capitulation as denoted by such developments as NAAIM’s Exposure Index plunging to single digits, CBOE’s Total Equity Put-to-Call Ratio popping above 1.5 and a spike in the CBOE S&P 500 Volatility Index (VIX)

Small Caps Sell Off Leads Stocks Lower: How Far Will It Go? (Video)

Small Cap benchmark index Russell 2000 (RUT) has careened back-and-forth through a 13% range throughout 2014 – up until last week when it plunged below year-to-date support and has yet to come up for air. In apparent contrast, larger capitalization indices such as the S&P 500 (SPX) and Dow Jones Industrial Average (DJIA) have spent 2014 decoupling from RUT’s laggard performance. Now the Russell 2000 has shaved off -10% YTD and

Poking The Bear: Is This S&P 500 Pullback Different? (Video)

Over the past 2 years, market corrections have been driven to the point of extinction; but last week’s -3% S&P 500 performance has dared some to believe again. Will the current S&P 500 pullback be business as usual; or has the hibernating bear been poked one too many times? In this extensive video we analyze the S&P 500 and then break down its sectors, breadth and volatility across 40 charts

US Dollar Taking a Turn: Quiet Pullback or Key Reversal?

From the moment US Dollar Index Futures (DX) opened this week’s trade on Sunday evening, the Greenback has been under pressure.  Coming on the heels of a historic streak of 12 consecutive weeks higher and a nominal advance of +8.25%, the last 80 hours of trade have seen USD shed -2%, returning the trade-weighted benchmark measure to the site of last week’s historic symmetrical triangle breakout near 85.  Is the

Crude Oil Drilled In Early Thursday Selloff

Light Sweet Crude Oil Futures (CL) for November delivery are trading aggressively lower Thursday morning to as low as $88.18/bbl, pushing the commodity -5.1% versus last  close for its largest running weekly drop since the week of 12/30/2013’s -5.89% rout from $100.15 to $94.31. Today’s bearish continuation occurs in the 12th negative week of the 16 that have elapsed since Crude peaked at it’s Bearish Shark Potential Reversal Zone (PRZ) near $108,

Why Thursday’s ECB May Spark a Major Euro Rally

Andy Nyquist’s excellent multi-timeframe review of the US Dollar Index’s (DX) now-historic run (currently working on 12 consecutive weeks higher) notes the seasonal challenges this advance confronts as we enter the month of October. For the Euro – 56% of the US Dollar Index by weight – this couldn’t come at a more opportune time with a pivotal ECB policy meeting two days away.  Likewise for those itching for a

Death Crosses and the Limits of Market Rationality

Michael Harris of Price Action Lab penned a very thought-provoking post yesterday that slices through the noise on the Russell 2000’s recent Death Cross. In spite – and because – of it’s balance and evidentiary modesty Mike’s piece will not get the wide reading it deserves as financial news media ominously wails about the pattern to demagogue the morbid fascination and easily-stimulated anxieties of casual market observers who will wonder

Russell 2000: When the Levee Breaks

After a blistering +37% run in 2013, Small Cap benchmark index Russell 2000 has spent the balance of this year oscillating a broad sideways consolidation bounded by 1210 above and 1080 below.  This range was set by the 02/05-03/03’s parabolic drive higher and has now prevailed over the last 6.5 months.Depending on timeframe, the Russell’s (in)action in 2014 has provided market players and observers with wildly disparate experiences. As a