Major Indices

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”.

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

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

German DAX Rebounds: Index Testing Key Resistance Level

The German DAX correction started in early April and accelerated into June. Blame it on valuations, the rebound in the Euro, or Greece, but technicals play a role too. Like clockwork, German stocks found support at its .382 Fibonacci support level. And since then, the German DAX has been rallying. But the rebound rally is about to get tested. In the chart below, you can see three technical events that

Shanghai Composite Suffers Deep Decline: Can Chinese Stocks Recover?

The Shanghai Composite Index has been a huge winner in 2015. But when the masses jump on the mo-mo train they often forget that it’s a two-sided market. And when the “sell” button gets hit… sometimes it comes with swift moves to the downside. Case in point: last week.  Although investors saw similar pullbacks on the stock exchange in January/February and April/May, neither were as swift as the recent decline. The

The Rotation Report: U.S. Equities Atop Global Stock Markets

As stocks in Germany and China try to work through major stock market corrections, the U.S. market and select sectors look pretty good. Market sentiment is amazing these days and seems to be driving the markets. The Fed Statement lit a fire under the market (just as it did in March) and gutted “The Fed must raise rates now” crowd. Be sure to read this week’s “Top Trading Links” for a full primer

Thoughts On The FOMC Statement And Key Market Levels

Well, another Fed day came and went in the markets. There’s no need to be consumed by their every word, but there are some quality market insights to share post FOMC statement. In last week’s Top Trading Links, I shared this under-appreciated piece by @MylesUdland. Myles notes that the market is slow to react to Fed tightening cycles as evidenced in the mid 2000’s hiking cycle courtesy of @RobinWigg: Now as investors