All Entries Tagged With: "Indexes"
Video Review of the Indexes 11-22-2009
November 22, 2009 at 3:50 pm
A push to new highs just happened once again, and the bulls remain in control of the tape despite the weak finish which erased the gains from earlier in the week. Higher highs in place means the uptrends are still intact, and that certainly deserves our respect.
Speaking of respect, this week we’re very likely to see some extremely light volume as the Thanksgiving holiday rolls around. With the market closed on Thursday and open for a 1/2 day on Friday, the end of the week could be extra quiet. Before then though, it’s wise that we remember the light activity we’ll probably see, and trade smaller as a result. Throwing caution to the wind and pressing forward as if it’s a typical week isn’t the way to go, so respect the lack of participation out there and make adjustments accordingly.
As we head into a brand new week of trading, let’s examine some important levels in the indexes 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.
This clip was also posted over on the Trading Videos site (as always), and perhaps you’ve seen it there – but in case you didn’t, I wanted to put it here on the blog for you.
Let me highly suggest clicking the “HD” on the video player and then going full-screen for best quality.
Thanks for stopping by and I’ll see you here soon with more.
Until then… Trade Like a Bandit!
Jeff White
Are you following me on Twitter yet?
Video Review of the Indexes 11-8-2009
November 8, 2009 at 2:39 pm
After a pretty decent pullback from the October highs, the dip-buyers were faced with another opportunity, and last week they began to do their thing once again. An upside reversal on Monday paved the way for higher prices to come, and by the end of the week a respectable bounce was here.
There are some mixed signals on a technical basis which are still worth noting here, and that should keep the trading environment an interesting one for the foreseeable future. We have volatility starting to expand, stocks trending in different directions, and earnings season starting to wind down.
As we head into a brand new week of trading, let’s examine some important levels in the indexes 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.
This clip was also posted over on the Trading Videos site (as always), and perhaps you’ve seen it there – but in case you didn’t, I wanted to put it here on the blog for you.
Let me highly suggest clicking the “HD” on the video player and then going full-screen for best quality.
Thanks for stopping by and I’ll see you here soon with more.
Until then… Trade Like a Bandit!
Jeff White
Are you following me on Twitter yet?
Video Review of the Indexes 11-1-2009
November 1, 2009 at 2:07 pm
The major averages sold off hard last week as profit-taking dominated the action. The lone advance happened on Thursday, but Friday’s selling pressure alone had no trouble erasing it.
The NAZ is now facing a very critical level, and the overall character of this market is quickly changing. Volatility is expanding, and suddenly traders are remembering that the market can indeed move both directions.
As we head into a brand new week of trading, let’s examine some important levels in the indexes 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.
This clip was also posted over on the Trading Videos site (as always), and perhaps you’ve seen it there – but in case you didn’t, I wanted to put it here on the blog for you.
Let me highly suggest clicking the “HD” on the video player and then going full-screen for best quality.
Thanks for stopping by and I’ll see you here soon with more.
Until then… Trade Like a Bandit!
Jeff White
Are you following me on Twitter yet?
Oversold Bounce or Higher Low?
October 29, 2009 at 9:51 pm
Following an impressive surge higher from early October, the market has finally taken a breather. The pullback of the past week has offered at least a short-term change of character that has my attention – and yours as well, I’m sure.
Downside follow through has been notably absent for some time now…until this week. Four consecutive declines began with last Friday’s reversal from the highs in the NAZ (2190), and ended with Wednesday’s punishing selloff. Thursday’s bounce was headlined by a near-200-point jump on the DJIA, but under the surface we saw the NAZ post an inside day. The S&P 500 erased Wednesday’s losses, but on declining volume. Mixed signals, to say the least.
Looking at the daily charts of the indexes, a case can be made for more than one scenario here. We are in well-defined uptrends, and the dip of the past week could again get bought and prove to be yet another higher relative low within the trend. But by the same token, the bounce we saw on Thursday could merely prove to be a relief rally after the harsh selling which put the market short-term oversold. It’s hard to place my entire weight on either scenario just yet, as more technical evidence needs to be seen to support one or the other.
So at this point, I’m making zero predictions. This isn’t a spot to buy blindly and bank on another rally straight back up to new highs. The selling intensity we just saw wasn’t like the modest pullbacks which preceded it. It was a little more vicious and a little more ominous. It could be the start of a change of character. And this isn’t a time to call for a market top and start shorting the daylights out of every name out there. The intermediate trend is still up, and that should be respected.
I’m expecting the next few days to carry some significance. Either the bulls prove themselves yet again, or the bears build on their newfound confidence and we see another leg down begin to develop. Personally, I don’t care which side wins out – I have no bias.
My approach is to stay very short-term for the next couple of sessions, day trading for quick moves in this increased volatility, and see what happens. Many stocks broke down hard and have the potential to construct bear flags and rising wedges if the rebound loses momentum and volume continues to sag. I’ll be watching those bounces intently. Other stocks still aren’t far from their highs, so I’ll observe them closely for signs of real strength returning – not simply a relief bounce of one day.
Both the bulls and bears have something to prove these next few sessions, so it could wind up being a pretty good battle. No matter what, volatility is picking up, and that’s a great thing for us as traders.
So stay objective out there, anything is possible. Expect surprises in both directions. We’re getting into the best season for trading in the next several months, and I’m excited about it!
Trade Like a Bandit!
Jeff White
Are you following me on Twitter yet?
Video Review of the Indexes 10-25-2009
October 25, 2009 at 4:27 pm
The bulls produced new recovery highs last week (again), but as the week wound down, it appeared as though some fatigue may be setting in. Not only did we see bearish engulfing bars on Wednesday and no new highs after that, but we are also seeing some rest set in with the establishment of short-term trading ranges. Prices are currently sitting just above some key levels, so if we see those get broken, it could bring some profit-taking into the picture.
As we head into a brand new week of trading, let’s examine some important levels in the indexes 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.
This clip was also posted over on the Trading Videos site (as always), and perhaps you’ve seen it there – but in case you didn’t, I wanted to put it here on the blog for you.
Quick Announcement: I just want to remind you to join our free newsletter list for trading insights by email. If you’ve been on the list in the past, it has changed, and you’ll need to opt in here to receive it going forward.
Let me highly suggest clicking the “HD” on the video player and then going full-screen for best quality.
Thanks for stopping by and I’ll see you here soon with more.
Until then… Trade Like a Bandit!
Jeff White
Are you following me on Twitter yet?
Bearish Engulfing Bars Warrant Caution
October 21, 2009 at 9:35 pm
Following gains of more than 7% in just a dozen days, today we saw the market averages tag new recovery highs and then reverse sharply to finish in the red. The bearish engulfing bars which resulted on the daily charts aren’t pretty, especially given the elevated volume which accompanied them.
It hints that this market is finally showing us a little fatigue, and that perhaps more than a few buyers morphed into sellers – at least for today.
If we did see a pullback begin to develop here, it wouldn’t at all be an unhealthy thing. Several dips have occurred since the March lows were set, with each of them being bought. Now, at some point that is going to change – it’s imperative to understand that – but we don’t yet have enough technical evidence to jump to conclusions at this point for anything but the next few days. And on that note, caution is warranted after today’s action.
Just a little while ago over on the trading videos site, I posted the following video. In it, I discuss what took place today, and offer up a few levels on the downside we could see tested if Wednesday’s selling pressure sees follow through.
Let me highly suggest clicking the “HD” on the video player and then going full-screen for best quality.
Thanks for stopping by and I’ll see you here soon with more. Until then…
Trade Like a Bandit!
Jeff White
Are you following me on Twitter yet?
Video Review of the Indexes 10-18-2009
October 18, 2009 at 2:44 pm
The bulls were back at it again last week as they produced new recovery highs in each of the major averages. The net gains weren’t overly impressive, but the mere fact that the market keeps climbing certainly is.
Many stocks have become short-term extended and in need of rest. Consolidation has been a rare condition for this market since the March lows were put in, but that’s the nature of a rally when the prevailing mindset is that of not wanting to miss out.
As we head into a brand new week of trading, let’s examine some important levels in the indexes 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.
This clip was also posted over on the Trading Videos site (as always), and perhaps you’ve seen it there – but in case you didn’t, I wanted to put it here on the blog for you.
Let me highly suggest clicking the “HD” on the video player and then going full-screen for best quality.
Thanks for stopping by and I’ll see you here soon with more.
Until then… Trade Like a Bandit!
Jeff White
Are you following me on Twitter yet?
