ON HIATUS UNTIL JULY 12TH 2017
NO FURTHER MARKET UPDATES WILL BE POSTED UNTIL THEN
Current Orientation on U.S. Stocks
Keeping You on the Right Side of the Markets
Financial Market Technical Analysis
Elliott Wave :: Intermediate and Long Term Swing Trading
Get the balanced, objective analysis you need to profit from timing moves in the stock market, gold, precious metals, commodities, treasuries, bonds or forex!
Eventually, all bull markets will see significant corrections of price gains. During the last secular bull market from 1982-2000, SPX saw corrections of 14.18%, 35.94%, 20.36% and 24.51% on its way to a gain of 1419%.
Even the terrifying 1987 crash was nothing but a correction in a perfectly trending long term bull market.
In my view SPX and US equities in general are in the process of finishing a bull wave that started in November 2012. It is possible that the bull wave can see a significant extension from current levels before it completes, but analysis tends to support limited upside and substantial downside risk going forward. When equally viable Elliott Wave counts compete, the technician needs to examine the technicals, liquidity, sentiment and psychology of the market to see which count is better supported by underlying conditions. In my view there is substantially more evidence to support a correction than there is to support a bullish extension at this time. For this picture to change, we would need to see a fairly immediate and aggressive bull breakout move at the outset of 2015. Failing that, if we see a continuation of last week's selling, it is likely that a sizable correction will be nearby.
Shares of CSX Corporation (NASDAQ:CSX) fell after the transport stock reported earnings that beat Wall Street expectations. Does it sound weird, it is falling on an earnings beat? Upon a closer look, some accounting maneuvers allowed for that beat. If you back out those shady dealings, CSX Corporation actually missed earnings. This explains why it is falling. Being a technical chart trader, I have been bearish on CSX Corporation. I just cannot make sense of a railroad stock trading at…Continue
Shares of Boeing Co (NYSE:BA) surged in early trading, hitting new all-time highs at $208.61. However, the rally faded as the day dragged on with the stock giving back all the gains and closing flat at $206.44. This reversal from all-time highs increases the odds exponentially that a top is in on the aerospace company. Boeing Co has an official topping tail in place and should now start selling lower. The next wave of selling will take the stock to the daily 50 moving average, which also…Continue
Did you see the price action on Alibaba Group Holding Ltd (NYSE:BABA) today? The stock opened sharply higher before seeing about 1 hour of hard, heavy selling. This took the stock from a big gain to negative. After the first hour, Alibaba has slowly floated higher back to the flat line and slightly positive on extremely light volume.
So what does this mean? Why is it so significant? The heavy volume selling which last an hour was major institutions unloading. They always sell…Continue
Using a measured move method, I calculated the probable top on Twilio Inc (NYSE:TWLO). The stock will continue to squeeze higher until $83.00. The current price is $69.75. The method used is simple when you have a daily chart that has a big move higher, then a long consolidation pattern and another big move in progress. Simply take the low to high of the first move (on TWLO approximately $30) and add that amount to the low of the next move in progress. The low of the current move on TWLO is…Continue
Shares of Home Depot (HD) have been falling sharply in the last month. After topping out around $160.00, the stock is trading below $147.00. Part of the issue is that Amazon (AMZN) is encroaching on…Continue
Swing trading is a strategy where traders in the market keep their trades open for days and for weeks. They do not close their trades and give their trades time to hit their potential profit taking…Continue
Have you ever gone to fishing with your neighbors or with your friends? It is pretty much clear to everyone that fishing takes a long time. You have to stand still at one place for hours and hours…Continue
I bought 5,000 shares of Cara Therapeutics, Inc. (NASDAQ:CARA) at $12.32 just minutes ago. The reasoning is mostly technical, as the stock chart is hitting major technical support and is extremely…Continue