Thanks to a 20% drop in crude oil, and a big decline in demand and Brent Crude (in Europe), oil service names have been hit rather hard. The key here is finding out if there is further downside, and the chart below certainly looks like we have not hit bottom yet. Given the sharp declines…
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One of the ways for us to understand the emotional state of the markets is to look at sentiment. The spectrum of fear and greed is wide, and when we tally up all the different indicators, from VIX to put/call ratios and from polls to money flows, we generally wind up near the middle of…
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Well, we had a lot to discuss during this week’s webinar. The rally on Wednesday was real and on very high turnover – a sharp contrast to Tuesday’s action, when it seemed as if everything was destined to fall. Follow through won’t be confirmed for 4-7 days, so we need to keep our eyes peeled…
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For years we have seen the semiconductors lead not just technology stocks but the overall market as well. Intel, Qualcomm and a few others have been top performers – but that may be coming to an end. The SMH is the semiconductor index ETF, and its chart below shows a bearish bias in this group.…
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As we move into the last quarter of 2014, it is time to do some market analysis. Let’s take a deep dive-look at the index charts and markets and see if we can discover some reliable patterns or new trends (I’m looking at you, volatility) that may shape the coming action. SPX 500 Daily Chart…
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Trading volatility, you ask? Yes, it’s a thing! During today’s webinar, special guest Jay Wolberg of Trading Volatility, shared his options trading strategies and tools that he uses for volatility, futures, and etns. He and I then debunked some myths about volatility and talked more about how to interpret signals and act on that information.…
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There’s been a lot of talk about the death cross emerging in the charts of the Russell 2000. However, you probably haven’t heard about this: There are some technical analysts, including me, who believe the pattern may be bullish over the long-term. That’s right – bullish! Last night, one of my charts was featured on…
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When the markets (eventually) drop severely, nobody wants to be left holding the bag – who would? While the global economic collapse in 2008/09 is still very fresh in our minds, we have to recognize that that event was an outlier. Yes, the pain was REAL and felt across the investment world, but even with…
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After a pretty ugly session today, I tried my darndest to put some spin on the action during today’s webinar. I talked about where things might be going and what we should be concerned about. Given the massive run up in volatility and the heavy selling that ensued today, it seems things are overdone for…
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The Dr. Pepper/Snapple (DPS) chart has looked great all year. Recent volume trends have been strong, which signals institutional sponsorship. The uptrend line is intact, and every pullback has provided a great buying chance (see the %R below). As for relative strength, the trends have been solid with good price action and a “buy the…
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