Tuesday, August 14, 2007
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Fellow Trader,
(If
you missed Special
Report: A Sneak Peek at the Next Bear Market in Stocks I urge you
to read it now.)
Well the wild ride in the stock market has continued to reinforce Gann
Global Financial's argument for a decline in the later stages of 2007.
They've recorded another video: Are
you ready for an S&P "Runaway Decline"?
At present, the overall 9% decline
in the S&P 500 is strikingly reminiscent of the 9% decline which
preceded the crash of 1987.
In fact, a video reveals that the
pattern of the 1987 "crash" is the closest fit of any historic
precedent since 1886!
Could
the S&P be Tipping its Hand?
This new video by James Flanagan
takes an in-depth look at the comparison between the current stock market
and this 20-year cycle (the 1987 crash).
As of yet it doesn't look like we
have confirmed the 1987 pattern.
But, if we do, the other shoe should
drop and the decline should be much greater than what we have experienced
so far.
If that scenario plays out, James
feels this stock market would have the potential of JOINING THE CLUB of
"Greatest Runaway Declines in History."
Watch the video here - Are
you ready for an S&P "Runaway Decline"?
|
PS
- Year of Transition - Gann Global Financial - This year should be a major
transitional time frame with two major financial events taking place... Major events in the financial markets Video
|
Trading Education
Tutorial
Overbought / Oversold / Overload
Analysts love to show off by proclaiming
that the markets have become overbought or oversold. Unfortunately, few of us
seem to understand what these terms really mean or what we should do when these
moments of truth arise.
Should we run for the hills because a
market is overbought, or perhaps load up the boat because it's oversold? And
how do we know when one of our trades might fall prey to one of these extreme
conditions?
The best way to understand overbought or oversold markets is to study the
nature of supply and demand. At any given moment, a finite pool of buyers and
sellers is available to take action on a particular stock. The trading activity
of this crowd usually stays within fairly narrow boundaries.
But imbalances develop over time and force one side to pull the trigger,
sometimes prematurely. This "uses up" that side of the market and
awakens price mechanics that favor the other side...
Read
More...
Trading Education
Tutorial
Courtesy of
Nirvana Systems
Measured and Exhaustion Gaps
Identifiable Patterns After Confirmation Move
We have previously mentioned the three types of
gaps that are of relevance to investors - the breakaway gap, the measured (or
continuation) gap, and the exhaustion gap. We previously discussed the
breakaway gap, but it is important to discuss the measured gap and exhaustion
gap at the same time. Why? Because it is difficult to tell one from the other
until after the fact.
Read More...
NASDAQ Chart of the
Day
Courtesy
of Nirvana Systems
CYTC has built out a clear
conslolidation range from 40.30 to 45.00, which has built out over the last
three months. An eventual breakout from this range could offer a significant
move in the direction of the break. Keep an eye on critical support at 40.30.
Daily Trading Signals
Trading Ideas &
Picks
The Weekly Report for August 13th -
August 17th - Volatility Contiues
As you can see from the charts below, volatility
levels remain high and we believe this may cause the markets to continue
trading in a choppy manner until investors get a better idea of how the credit
problems will affect the longer-term direction...
Trading
Picks - Read More
Trading Ideas &
Picks
Weekly Swing Ideas Report for August
13th - August 17th
Stock Picks - Long and
Short Potential Swing Candidates ... SwingTracker Scans: Trading Window (PEP
PEPSICO INC, TRID TRIDENT MICROSYSTEMS INC, ANAD ANADIGICS INC, K KELLOGG CO,
WYNN WYNN RESORTS LTD), Force Swings, Triangle, Revival, Reversals (SGP
SCHERING PLOUGH CORP, XLI SELECT SECTOR SPDR TR, EL LAUDER ESTEE COS INC, AAP
ADVANCE AUTO PARTS INC, NTRI NUTRI SYS INC NEW), Breakouts and more...
Trading
Ideas - Read More
NYSE Chart of the Day
Courtesy
of Nirvana Systems
XOM has built out a large
head-and-shoulders pattern at the highs after trending steadily higher since
early Spring. XOM has built out a clear neck line (support) at 80.40, which we
will watch closely for signs of a break or bounce for longer term direction.
Daily Trading Signals
Daily Market Commentary
Courtesy of
Nirvana Systems
Updated Monday, 8/13 for Tuesday's market.
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Key DOW Levels for 8/14
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UP
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Above 13,350
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DN
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Below 13,100
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Quiet Session...
- Dow trades quietly sideways, ends session with 3
point loss. Today's movement in the Dow was in stark contrast to the heavy
volatility we've seen over the last four weeks. Continue to watch key support
and today's highs for signs of a medium term breakout move.
- The NASDAQ and S&P closed the day with buying into the Close and continue
to hold above critical support levels after today's tests. Look for the indexes
to continue to test these zones until a solid break or bounce occurs.
Summary
The Dow closed the day very quietly today after trading with low volatility
throughout the session. The index continues to hold above critical support and
beneath near-term resistance, which we will watch closely tomorrow.
Read More...
