Thursday, August 30, 2007
Technical Indicators
Moving
Average, Triple Exponential
The Triple Exponential Moving Average (TRIX) is an oscillator used to identify
oversold and overbought markets as well as a momentum indicator. For use as an
oscillator look for a positive value to indicate an overbought market and a
negative value indicate an oversold market. When TRIX is used as a momentum
indicator, a positive value suggests increasing momentum just as a negative
value suggests momentum is decreasing. Some believe that the TRIX crossing
above the zero line is a buy signal and a closing below the zero line is a sell
signal. Divergence between price and TRIX can also indicate significant turning
points in the market.
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Trading Education
Tutorial
Courtesy of
Nirvana Systems
Volatility
Well Behaved Stocks Reap Rewards
Some stocks move multiple points and multiple
directions in one trading session. Other stocks are more methodical in their
day-to-day movement. Which type of stock is more attractive to you as an
investor?
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NASDAQ Chart of the
Day
Courtesy
of Nirvana Systems
COST is winding up within tight
triangle pattern that could offer an explosive breakout move. Watch 61.50 up,
and 59.00 down for the next key breakout move.
Daily Trading Signals
NYSE Chart of the Day
Courtesy
of Nirvana Systems
NUE has formed a potentially
bullish inverted head-and-shoulders pattern with a clear neck line (resistance)
at 56.00. A break through this level could send the stock back toward 65.00.
Daily Trading Signals
Daily Market Commentary
Courtesy of
Nirvana Systems
Updated Wednesday, 8/29 for Thursday's market.
|
Key DOW Levels for 8/30
|
|
UP
|
Above 13,400
|
|
DN
|
Below 13,300
|
Big Reversal...
- Dow reverses from yesterday's lows, rallies
strong into the Close. The Index rallied early in the day, formed a higher low and
then rallied strong the rest of the day, eventually closing the session with a
solid 247 point gain.
- The NASDAQ and S&P each rallied from yesterday's lows and closed the day
at session highs. Each index looks poised for another test at the major upper
trend line, which we will watch closely tomorrow.
Summary
The Dow closed the day with a very nice rally into the Close, as the index
covered 170 points in the final 2 hours of the day. The index is now winding up
within a potentially explosive triangle that we will continue to watch
tomorrow.
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