The S&P 500 (SPX) recovered nicely off the lows made this morning (1989.18). After spending much of the morning in negative territory, stocks rallied with strength in the afternoon, with SPX volume running slightly above average. BUT it’s also worth noting that this type of action fits in with the bigger picture market “chop” that we’ve seen for the past two months. The move to the downside this morning offered a risk-defined trading
Stocks & ETFs
With London’s FTSE 100 Index, the current price area has stood as particularly durable resistance for more than a decade. We are watching to see whether the index can leave a lower high at the start of 2015. The FTSE includes the top 100 stocks on the London Stock Exchange based on market capitalization. Together, the 100 companies represent more than 80% of the market capitalization of the entire exchange.
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
We can use the Relative Strength Index (RSI) in a myriad of ways, but my favorite way is to use it as a straight forward barometer of strength. And one sector ETF that has continued to trend higher over the past two years is the Biotech Sector ETF (IBB). But I noticed something recently with its RSI that I think is important for traders to note. Let me explain. For
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
It’s been a rocky ride thus far for the major stock market indices in 2015. Just 3 weeks ago I wrote about the resistance levels for the Dow Jones Industrial Average (DJIA), NASDAQ Composite (COMPQ), S&P 500 (SPX) and the Russell 2000 (RUT). I purposely did that post at that particular time because all 4 major stock market indices were at what I deemed “make or break” levels. Simply put, they were
If you are unfamiliar with my thesis on Apple, Inc (AAPL – quote) and International Business Machines (IBM) for 2015, it goes something like this: IBM should start to outperform at some point in 2015, and AAPL may begin to underperform. And with AAPL $100 support coming into view and IBM $150 support in view; investors need to pay attention here. Here’s some research past research posts on the subject:
Large cap tech stocks had a rough day. And no other index measures this as well as the NASDAQ 100 (NDX). The NASDAQ 100 closed down 1.36% as shares of Apple (AAPL) fell 2.71%, while fellow tech titan Facebook (FB) dropped 2.23%. But what made the NASDAQ 100 so interesting today was its close at 4089, the third such trip to this level in the past month (this level also marks the September highs).
As we draw closer to Apple’s 1Q earnings report on January 27th, investor chatter is ramping up. According to Estimize, Wall Street consensus is for earnings of $2.56, while the community is looking for $2.58. Either way, both estimates would crush 2014 1Q earnings. But if you are an active investor hoping to get into Apple (AAPL) for a quick trade or investment, you may want to see how the current stock price
The German DAX Index closed today up 1.38% at 9781.90 on the heals of hopes for a new and improved economic stimulus out of the ECB (i.e bond buying). But perhaps the larger story for traders is the current symmetrical triangle that is forming on the German DAX. This is when the price action narrows producing an equidistant and equi-angled triangle pattern based on the daily highs and lows. Often times,