Archive for Market
Market Update
Posted by: | CommentsIt was an excellent day on the markets yesterday the S&P-500, DJ-30 and even the Dow Jones Transports have made new highs. All the stock research you have been doing can now be put into action, we can classify most of the US markets as resuming an uptrend. Of course always beware that this could change at the drop of a hat. We are still in a jittery market, but yesterday the bulls won and pushed the indexes to new highs on slightly increasing volume. Jesse Livermore always referred to “Pivot Points” in his Stock Analysis and the important pivot points that prices need to hold above are S&P500 1100, DJ-20 4040, DJ-30 ´10246.
Have fun and may the trade be with you.
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S&P500 Market Analysis Update
Posted by: | CommentsWednesday 10th November was a mixed and volatile day which leaves a ngative after taste.
The S&P Price crossed down through the 10&20&50 day Moving Averages which is a negative sign. Yesterdays price moves equate to an “Inverse Hammer Candlestick”, or more correctly a “shooting star” meaning the 3 day short term upswing “may” be at an end. Action for Wednesday tried to test the long term trend line, but failed.
How the market interprets news is important, and although the news from the FED was not negative, the market could not muster enough strength to move higher. My advice is still to wait with your hard earned cash on the sidelines, until the market gives us a strong signal that it wants to move up.
Name: Barry D. Moore
Bio: Certified Technical Analyst (Stock Market Technical Analyst), Full Member of Society of Technical Analysts (STA) Level II CFTe (Certified Financial Technician), independent trader, author, trainer & blogger.
Knowing when not to buy.
Posted by: | CommentsWell am I glad I am currently in cash, I followed my own advice and moved to cash on Friday the 23rd of October. It was particularly hard to sit through thursdays rally but Fridays huge drop made it worth while. That is why I wrote the blog entry on Patience, to remind myself to be patient, you would not try to catch a falling knife so why try to get back into the market when it is in a downtrend. However we may be seeing a nice opportunity presenting itself over the short to medium term for us to buy back all those nice stocks we have been eyeing up. We are certainly in a short term correction which could challenge the October lows and go even further.
A brief look at the simple moving averages for the S&P500 and the NASDAQ-100 show us that the 10 Day Moving Average has crossed the 20 day MA. Not the end or the world, but certainly an early warning sign.
S&P 500
Patience is the companion of wisdom!
Posted by: | CommentsAs our parents always reminded us, patience is a virtue and in this case we need to hold that thought dear.
The S&P500 is in a short term correction, and could possibly retrace to the 1021 area. If the good GDP figures were enough, then perhaps the intermediate uptrend will resume and the market over the next few days will start with a short term uptrend. But this is no time to be gambling on 50/50 chances. Let the market signal its direction. A break of 1101 would be positive.
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Assessing Market Direction is critical before buying a Stock !
Posted by: | CommentsDow Theory has basically 5 tenets.
1. The market discounts everything.
2. The market has 3 trends (Primary, from months to years) Secondary (weeks to months) Minor (days to weeks) Charles Dow holds that minor trends can be random but the other 2 are parts of a cyclical trend.
3. The Primary trend has 3 phases, Accumulation, (the far sighted investors who have see a potential recovery) Pulic Participation (company earnings are proving good and the general public starts to participate), Distribution (far sighted investor start to sell as they see Stock Price growth is unsustainable in comparison to company earnings or economic climate).
4. The averages must confirm. Using the Dow Jones Industrial Average and the Dow Jones Transports, both must be in sych to have a solid trend. When both head down this is the start of a bear market for example.
5. Market Action. Volume is important and a market moving up on increasing volume is healthy. A market moving down on increasing volume is a warning sign.
Which Direction for the S&P 500 ?
Posted by: | CommentsWell the S&P 500 is making an attempt to push through the 956 resistance line and is currently nestling at 954. We will know by the end of this week if the Market is ready to advance or not. All eyes are on the S&P 500.
But which way will it go? Read More→
