All Entries Tagged With: "Market Conditions"
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?
Video Review of the Indexes 10-12-2009
October 11, 2009 at 11:03 pm
In the last 2 weeks, we’ve seen the market go 2 different directions – and yet nowhere at all.
Two weeks ago, a solid breakdown appeared to be underway as short-term support zones were undercut and volume increased as the selling pressure intensified. However, since then we’ve seen a quick recovery right back up, making it a round-trip effort as the indexes returned to former resistance areas. That’s of course where the fun will begin this week, making for some pretty interesting conditions.
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 9-27-2009
September 27, 2009 at 1:10 pm
Those who have been hoping for a correction in the market finally got a small taste of one last week. It wasn’t a significant one, but it was the first 3-day dip we’ve had in a month. Does that mean the fun is over for the bulls? Let’s not jump to any big conclusions just yet.
After tagging new recovery highs (again), we saw the market reverse hard on Wednesday and show some downside follow through for the remainder of the week. We’re still above recent resistance levels (which may now serve as support), and the trend is still up. That could change, yes, but we’re to trade what we see and not what we think.
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?
Understanding the Quiet Rally
September 23, 2009 at 8:32 am
It’s been one impressive rally…by some measures. The indexes have made an about-face from the March lows, refusing to look back as they erase so much of the carnage of the bear market. The move has been persistent and consistent…just a ton of green days.
But very few big days. Have you noticed?
I’ve been amazed at the lack of volatility, especially recently. It seems a huge day for the DJIA has become a triple-digit net change from the prior day’s closing levels. Just a few months ago, we were getting gaps that big to start the day, nevermind the several-hundred-point moves which were commonplace. Needless to say, it has indeed become a quiet rally.
In order to understand it a bit better though, I turned to an indicator to help make sense of it all, and I was surprised at what I found.
Different Directions
In the video below, I’ll walk you through my thought process that led me to doing this, and of course I’ll explain what it is that I discovered. Of equal importance, you’ll understand how and why navigating this market for as long as this rally runs its course will require a different approach than what is ‘typical’ (if there is such a thing in the market).
Here’s a video explaining it. Select the HD option and go 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 9-20-2009
September 20, 2009 at 12:59 pm
The market climbed higher once again last week, reaching its best levels since last fall with more persistent upside and relentless strength.
The bulls are flat-out refusing to rest, which has resulted in a continuous bid beneath the market. Every minor dip has been bought, which is frustrating both bulls who want to put cash to work at lower levels and bears who are itching to see a turn lower begin.
The wait continues at this point for a correction, and although the indexes badly need to pause or see some profit-taking, there’s still no technical reason here to turn bearish. The presence of short-term overbought conditions does necessitate caution on the long side though, and this week that could prove to be of particular importance.
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?
