Chartology

Gold Prices: Two Potential Paths Forward

Precious metals present a difficult trading scenario. While we believe they probably will reach for somewhat higher prices this summer, there is increasing risk that they will not. Traders may wish to wait for the picture to resolve before stepping back into this market. Today we’ll look at Gold prices – and specifically Gold futures. Of the two most likely paths for Gold futures, we still believe the most likely

Chart Focus: Putting The German DAX Decline In Perspective

The German DAX Composite began its decline well before the Greek crisis found its way back to the forefront of our trading screens. The Euro also began to firm up well before the drama in Greece. That simply means that some of the fallout in Greece is likely priced into the markets. Now this doesn’t mean that there isn’t risk to fall further, it just means that capital often begins to reposition before “events”.

What’s Wrong With Gold (GLD)?

Back in March, I issued a long research report on the state of the Gold bear market. In that report, I shared how a number of reasons why Gold was out of favor (and remain out of favor). But I also looked at sentiment, seasonality, and technicals to make a point that Gold had an opportunity to rally. Here’s an excerpt from that post: Headwinds included: US Dollar strength, slowing

Charting The S&P 500: End Of The Trend Or Higher Prices Yet?

As a primary trend trader with a focused strategy of looking for higher probability setups, I often find myself sharing my two sense on charts and market trends. Today I will focus on the S&P 500 and its current trend. Earlier on StockTwits, I viewed a 20 year monthly chart of the S&P 500 posted by a fellow member of the community. I couldn’t help but appreciate the technical presence

The Stealth Bear Market For Chinese Stocks: What’s Next?

Just last week, I wrote about 13 percent correction that occurred over one week on the Shanghai Composite Index (SSEC). Well it’s now been a little over two weeks since the selling began and the Chinese stock exchange is currently down 21.7 percent off its highs (and from intraday peak to its current trough it’s been 25.7 percent). That’s quite a haircut for any stock market.  Meanwhile, the S&P 500

Energy Sector (XLE): Still Digesting 2014 Massive Price Shock

The energy sector is struggling and it’s pretty clear the whole industry needs more time to recover from and (more importantly?) adjust to last year’s massive price shock. And this shows up on the chart for the Energy Sector ETF (XLE) Looking at the chart below, there are a few takeaways that are important to note. Underlying breadth leads price to new lows. Momentum divergences failed to lead to a rally.

Trading Ideas: 5 Stocks To Watch (FB, GOOG, TWTR, MDXG, ZIOP)

It is easy to point the finger at Greece as the culprit behind Monday’s mega sell-off, but it is impossible to deny that there has been an ongoing distribution among select US stock sectors for several months. Viewed from this perspective, yesterday’s price action among the major indices could simply mean the underlying weakness finally made it to the market’s surface. Regardless of what happens with Greece, the US market

Market Update: S&P 500 Technical Support Levels In Focus

So as the Greek drama continues to unfold with the looming referendum scheduled for this coming weekend and Greek banks closed until next week, it’s important to get a handle on the markets and where key technical support levels are. Having a plan helps active investors to be more proactive than reactive, and this reduces day to day emotion. Starting with the S&P 500 (SPX), my first level of technical support resided at

Palladium Correlations: Flashing Caution For Apple (AAPL) And The Nasdaq?

I have done several charts in the past looking at Palladium correlations, and specifically Palladium and it’s correlation to Apple (APPL). If you find correlations and price relationships interesting, do yourself a favor and spend some time starting from the beginning (which is at the bottom of the page in the link) and work through risk management and understanding the dynamics at play. As of Friday June 26, 2015 Palladium has broken

The Rotation Report: Global Markets Get Interesting… And Fast

It is worth keeping in mind how the last two weeks have played out in the global markets. In this week’s SIM Linkfest “Top Trading Links“, I noted that there has been a sense of calm in the blogosphere. It’s weird because all quarter there was a sense of caution… and that kind of disappeared after the Fed. That tied in quite interestingly with the fear that had built up on a micro