All Entries Tagged With: "Indexes"
Video Review of the Indexes 11-20-2011
November 19, 2011 at 9:01 pm
Last week the indexes pulled back to test some important levels, with the NAZ actually cracking 2600. For the time being, support zones elsewhere are holding, leaving the door open for a rally higher within the range.
This week only has 3 1/2 trading sessions, with the market being closed Thursday in observance of Thanksgiving, then an early close on Friday. For all intents and purposes, it will feel like even less than 3 1/2 sessions though, so it’s a good time to be selective and trade smaller due to the diminishing volume as the week progresses.
As we head into a brand new week of trading, let’s examine some important levels to keep an eye on in the days ahead. That will have the greatest influence on how individual stocks are going to move, so it’s where the trading week begins.
(Direct video link is here for those interested in sharing).
Be sure to view in HD (720P) and full-screen mode for best quality in the video.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Follow TheStockBandit on Twitter or get our free newsletter to keep up!
Video Review of the Indexes 11-13-2011
November 13, 2011 at 3:55 pm
Last week we saw the major averages test important short-term areas to further validate the recent trading ranges, and the tests were passed. Now it’s up to the bulls to produce a breakout, but from a technical standpoint they’ve got some real positives going for them.
As we head into a brand new week of trading, let’s examine some important levels to keep an eye on in the days ahead. That will have the greatest influence on how individual stocks are going to move, so it’s where the trading week begins.
(Direct video link is here for those interested in sharing).
Be sure to view in HD (720P) and full-screen mode for best quality in the video.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Follow TheStockBandit on Twitter or get our free newsletter to keep up!
Video Review of the Indexes 11-6-2011
November 6, 2011 at 1:48 pm
A sharp pullback to start last week left the indexes testing some important levels and filling some gaps, both of which proved to be technically beneficial for the market. Dip-buyers emerged to stem the losses though, erasing a fair chunk of the deficit from last Monday and Tuesday.
More progress will need to be made for the bulls to regain their October momentum, but overall the price action is constructive and this pullback – if kept shallow – could still result in a higher low on the daily charts of the indexes.
As we head into a brand new week of trading, let’s examine some important levels to keep an eye on in the days ahead. That will have the greatest influence on how individual stocks are going to move, so it’s where the trading week begins.
Update: direct video link is here as the YouTube embed code is hit/miss.
Be sure to view in HD (720P) and full-screen mode for best quality in the video.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Follow TheStockBandit on Twitter or get our free newsletter to keep up!
Video Review of the Indexes 10-30-2011
October 30, 2011 at 1:07 pm
The indexes ran higher last week, bolstered by a European debt deal which had been anticipated for quite a while now. With stocks rallying ahead of the news in recent weeks, the actual event actually prompted additional buying rather than a sell-the-news response. As a result, new recovery highs were established across the board.
As we head into a brand new week of trading, let’s examine some important levels to keep an eye on in the days ahead. That will have the greatest influence on how individual stocks are going to move, so it’s where the trading week begins.
Be sure to view in HD (720P) and full-screen mode for best quality in the video.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Follow TheStockBandit on Twitter or get our free newsletter to keep up!
Video Review of the Indexes 10-23-2011
October 23, 2011 at 10:17 am
The indexes were able to put in some much-needed rest last week, holding their ground after their recent ramp. The S&P 500 marked a new recovery high (as did the DJIA), while the NAZ and RUT churned in their respective short-term bases.
Technically, the picture has improved considerably, although it remains a headline-sensitive market right now with earnings season in full swing and all eyes on Europe.
As we head into a brand new week of trading, let’s examine some important levels to keep an eye on in the days ahead. That will have the greatest influence on how individual stocks are going to move, so it’s where the trading week begins.
Be sure to view in HD (720P) and full-screen mode for best quality in the video.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Follow TheStockBandit on Twitter or get our free newsletter to keep up!
Just What the Bulls Need
July 20, 2011 at 11:41 am
I noted yesterday that we were getting an upside resolution to the bull pennant pattern in the S&P 500, and it was no doubt a big day. The point and percentage gains across the board were impressive, yes, but were still outweighed by the technical move.
Breakouts need to see follow through. Sometimes they need it immediately, and other times it just needs to happen soon after.
For example, a minor breakout really needs to be followed by some immediate strength to build on the breakout and prevent a failure. On the other hand, a major breakout doesn’t necessarily have to see second-day strength to prove its validity. In those cases, a day or two of digestion are perfectly fine.
That’s how I’m interpreting today’s price action. The market made great strides yesterday to leave the pullback phase it had been stuck inside of, and today has been pretty quiet so far. Because of the size of yesterday’s breakout, I don’t think it’s imperative that we see continued strength today. A day or two of rest are a healthy way to digest that move, particularly for the case of the bulls. It allows for some churning between profit-takers and those nibbling at shares, and it lets the market catch its breath before possibly making another run.
We’ll see how this plays out, but that’s how I’m viewing it at the moment.
Here’s a closer look at the S&P 500 daily chart:
This day of rest is also highly important for the charts of individual stocks, as sharper moves tend to lead to reversals rather than pullbacks. Keep that in mind as you work your watch lists.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Caught In A Trap
June 16, 2011 at 5:44 am
Anytime the market tanks like it has lately, astute traders realize that shorting after a decline of this magnitude and momentum is a real potential bear trap. A sharp rebound could come at any time, leaving late shorts in a world of hurt.
I can’t and won’t argue with that – in the short term.
But the further this market declines in the intermediate term, the growing group of trapped traders are the bulls. Keep in mind that the past few weeks have been a big shift of character for this market, with the prevailing mantra moving from buy-all-dips to sell-all-rallies. Technically, that’s very important to recognize.
And while a sizeable bounce will eventually arrive, the important issue for most bulls is “from what level?”
Head Games
That brings into play the psychological aspect of this change of character, whereby not only do bulls become fearful, but the bears gain confidence. Bulls who bought virtually anytime over the past few months are now underwater, and the deeper this correction goes, the more that late-to-the-rally-party group wants out.
That could quite easily play out with bulls selling on the way back up – just the opposite of a few weeks ago when trapped bears covered on every little dip. By the same token, just as a few weeks ago we were still seeing underinvested or aggressive bulls put more cash to work on even minor pullbacks, the deeper this correction goes, the more the bears will be using bounces to remount short positions. That means what used to be buying by both camps is quickly morphing into selling by both camps.
A spring back up will at some point arrive, so fear not – this market is still a 2-way street. But for now, respect for the tape should remain very high, because anything is still possible. Whenever the inevitable recoil of this selloff kicks in, keep in mind that it too could get faded, and therefore will have to earn your trust.
Here’s a look at the S&P right now with the March lows coming quickly into view at 1249 (which may need to get broken before a real bounce happens):
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
