All Entries Tagged With: "NASDAQ"
Video Review of the Indexes 9-26-2010
September 26, 2010 at 12:38 pm
Last week new highs were made as the indexes put more distance between current prices and former resistance zones. The bulls have some exceptional momentum, but how long will it last?
That’s the question on everyone’s mind right now. No signs of weakness have arrived yet, so it’s still not time to expect weakness to set in. However, at some point a good rest or some profit-taking will arrive, and it will be after that occurs that we’ll be able to better assess the technical situation. For now, it’s a one-way street and stocks are still headed north.
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.
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 suggest going full-screen for best quality in the video.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Are you following me on Twitter yet?
A Good Time to Lighten Up
September 13, 2010 at 11:32 am
As I watch the action today, there’s reason to be impressed. Heading into today’s session, the market had posted gains in 6 of the past 7 sessions, and had moved right up to (or through in some cases) key resistance zones.
That would have been a very logical spot for some profit-taking, or at least some rest to kick in, but so far today all we have is more strength as the market tries to make it 7-of-8. Each of the major averages have pushed through their respective resistance levels. The NAZ has filled its gap to 2277 from 8/11 and the August high isn’t much of a stretch from here. The S&P 500 has motored well beyond 1107 and is just a few points from big resistance near 1130. The DJIA is through 10,480 and only a short distance from former resistance and the broken uptrend line at 10,600. And the RUT is now well past former broken support at 639. Needless to say, the longer-term technical picture is looking far better than it was just a couple of weeks ago.
Look to the Left
But that doesn’t mean the bulls are in the clear. Not in the intermediate term, at least until the August highs are cleared. And not in the short term, given that this move is becoming extended.
Momentum in the market is a funny thing, because it can be completely absent and then suddenly dominate the tape. The buyers have momentum right now, and I’m not in a hurry to fade that. But at the same time, I’m also in no hurry to chase it. In the past several months, we’ve seen plenty of moves of similar magnitude to that which has occurred since August 31st, and a number of them have delivered at least short-term reversals. Piling on in expectation of immediate continuation has not been a strategy that has paid well.
As a technical trader, I let the charts guide me. I watch for patterns and trends, yes, but I also must monitor the overall behavior of the market – the habits of the price action, if you will. At some point, continuation beyond multi-day moves will become more commonplace, but if recent history is any gauge – and particularly with major levels looming just overhead – my inclination here is to be more cautious than aggressive.
A Little Caution Goes A Long Way
For those who are bulls, I think better prices will arrive for getting long. For those who are bears, there is no proof yet that this bounce is over. And all of that leaves me feeling that doing less here is best – at least until some rest is seen.
If you’re seeing some good trading opportunities out there for the shortest of timeframes, there’s probably no harm in taking them. But for a multi-day timeframe, I am not a buyer in these conditions and would much prefer to see a pullback or some rest before considering longer-lasting trades on the long side.
Here’s a look at the NAZ, which has moved more than 8% off support in just 8 sessions – is that really sustainable?
Be careful out there.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Are you following me on Twitter yet?
Video Review of the Indexes 9-6-2010
September 6, 2010 at 12:41 pm
Last week proved pivotal as potential higher lows were established for the major indexes. Tests of key support brought out the bulls, who seized an opportunity to make their mark.
We’re now right back to resistance zones after a big 3-day run, and that could spell some short-term rest (if the bulls are lucky). Once they take a breather, however, the buyers just might floor it again with their sights set on the August highs.
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.
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 suggest going full-screen for best quality in the video.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Are you following me on Twitter yet?
Video Review of the Indexes 8-29-2010
August 29, 2010 at 12:48 pm
The indexes tested and validated key levels last week for the short-term and longer-term timeframes. So although not much progress was made, it was still technically a productive week for the market.
Broken support zones are now serving as resistance, and as of Friday, the indexes are sitting just shy of those levels. That brings potential for movement in the week ahead. We also have a lot of economic news ahead of the coming 3-day weekend for Labor Day, so it’s time to get prepared!
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.
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 suggest going full-screen for best quality in the video.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Are you following me on Twitter yet?
Video Review of the Indexes 8-15-2010
August 15, 2010 at 1:21 pm
The first serious pullback in over 6 weeks arrived last week as the major averages came under pressure. Rising trend lines were broken, and cash was raised in light of renewed market concerns.
Short-term uptrends have now been broken, but that doesn’t mean the recovery is necessarily over for this market. The July lows are posing as intermediate-term lows, and if those zones are able to hold, the buyers will be able to breathe a sigh of relief.
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.
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 suggest going full-screen for best quality in the video.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Are you following me on Twitter yet?
Video Review of the Indexes 8-8-2010
August 8, 2010 at 12:58 pm
Last week proved to be another healthy one for the bulls. Quite a bit more happened than it appeared on the surface, as the indexes moved higher, tested uptrend lines successfully, and based quietly beneath key resistance zones. The coming week may be pivotal for this new uptrend, as we’ll face an FOMC day on Wednesday, as well as the fact the bulls have an opportunity to push through key levels in the NAZ and S&P 500.
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.
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.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Are you following me on Twitter yet?
Video Review of the Indexes 8-1-2010
August 1, 2010 at 11:25 am
A short-term peak was marked last week with Tuesday’s gap higher, and as per my tweet, it invited some profit-taking. That sparked a pullback into Friday’s lows, where dip-buyers closed the opening gap.
That begs the question of whether the dip has been completed, and more importantly, is this market poised for another push higher? Well, as you might expect, I’ll cover that in the video.
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.
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.
Trade Like a Bandit!
Jeff White
Swing Trading & Day Trading Service
www.TheStockBandit.com
Are you following me on Twitter yet?
