Chartology

Bearish Continuation Patterns Emerge In Energy Sector (XLE)

Energy stocks had an awful Wednesday with the Energy Select Sector SPDR (XLE) losing 3%. What’s surprising is the ETF didn’t even test the falling 50 day moving average. Generally sellers wait for a test of the moving average when it’s so close by, but they couldn’t wait to sell the ETF and its several underlying energy stocks today. Several charts of key stocks within the energy sector are emerging with bearish

Rare Territory: The US Dollar Towers Above Its 200 Day SMA

The US Dollar Index turned vertical into 2015, touching as high as 95.86 over the past week. But the recent rise has also pushed the US Dollar Index to one of the highest levels above its 200 day simple moving average in the past 30 years. This is truly rare territory for the US Dollar. Can anything cool it off? Well, it just so happens that this unheard of strength has propelled the

US Dollar Chart Pattern: CounterTrend Move Imminent

The US Dollar Index has made a big move higher since mid 2014. The world’s financial landscape is changing, and several markets, including the Forex, are in flux. How this shakes out longer-term is another story, but over the near term the US Dollar chart pattern may be setting up for a countertrend move. My particular skill set is finding PATTERNS that repeat based on musical math and then take a

Crude Oil Prices Eye 52 Week Lows: What’s Next For Crude?

Crude Oil prices continue to be a hot topic. And as news continues to stream out of the Europe regarding the ECB’s bond buying program, the falling Euro, and/or country elections, oil keeps falling. The news cycle this week is no different, as the Greek elections could pressure the Euro and, in turn, Crude Oil prices. Perhaps there is too much focus on Europe and its battle with deflation. That’s

Silver Prices Nearing Major Technical Resistance Into $19

Silver prices have enjoyed a nice rally in the early going of 2015, reaching up as high as $18.50 per ounce. The recent thrust higher likely has to do with European concerns and tension around the Swiss National Bank situation and the ECB bond buying program, but either way, price has moved higher. It’s also worth noting that the rally has landed silver right in thick of heavy price resistance.

Silver Copper Ratio Breakout Triggers Pairs Trade

Silver has been setting up pretty well for a trade. I noticed this a couple weeks back and posted about a pairs trade with Copper (long Silver, short Copper). You can read that post here.  Why was I interested in this trade? Well, in short, Silver looked like it was ready to move higher while Copper still looked week.  And this was visible on the Silver Copper ratio chart. The chart below

Moody’s Stock (MCO) In Consolidation: What I’m Watching

Although my main trading focus is on futures, I will from time to time take a closer look at an equity if something catches my attention. Recently while reading an article I stumbled upon Moody’s Corporation (MCO). After doing some homework and applying my own Fibonacci drawings, I saw Moody’s stock as a potential long setup that is in a consolidation phase. BUT as with any trading setup, we need to

Corn Prices Stabilize After USDA Report, Eye Support

After a strong multi-month late year rally above 4 dollars per bushel, Corn prices have spent much of the early going in 2015 in negative territory. The current pullback in Corn prices has been orderly, and thus far appears to be constructive, especially when considering headwinds like a stronger US Dollar. Note that the pullback began from the targeted price resistance zone that I wrote about on December 19. The

Chart: The US Dollar Index Is At Critical Juncture

The US Dollar Index has been chugging higher for 7 straight months. And each time it looks ready to pullback, it recharges its engine and goes higher. Many investors probably downplayed the rising Dollar because, amongst other things, it was still in a long-term downtrend… well it’s time that we all pay close attention to that downtrend line. The US Dollar Index is currently trading (overnight futures) above 93, with a recent