Wednesday, May 02, 2007
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Recent
Picks / Trading Ideas
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INAP - 200-day moving average support April 5
Several technical indicators are confirming the support and the Parabolic SAR
indicator has recently triggered a buy. It will be interesting to see if the
bulls start to step back in ...
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Swing Trade of the Week April 5
CHKP: Stock ended a nice MA uptrend with a crossover down and is now coming
off a countertrend move up to the Downtrending MAs. Look to establish a short
at 22.64 or higher ...
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Swing Trade of the Week March 29
WYNN: Stock ended a nice MA uptrend with a crossover down and is now coming
off a countertrend move up to the Downtrending MAs. Look to establish a short
at 96.74 or higher ...
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General Dynamics Corp - Ascending channel March 29
GD: Stock has been trading within the confined range of an ascending channel.
DMI have recently created a signal that is suggesting the bears are taking
control of the momentum ...
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Intel Corp - MACD bullish crossover Mar 22
Stock has fond support at the influential $19 level. MACD has recently moved
above its signal line suggesting that a move toward $20 is more probable than
the move toward $18 ...
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Monthly Market Recap February 1
The Macro weekly uptrend is still bullish, the uptrend is intact. The longer
term trend is up, but the market is very susceptible for possible near term
corrections. ...
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A Year of Transition Jan 4
Gann Global Financial - This year should be a transitional with 2 major
financial events ...
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Trading Education
Tutorial
Elliott
Wave Theory
In the 1930s, Ralph Nelson Elliott found that the markets
exhibited certain repeated patterns. His primary research was with stock market
data for the Dow Jones Industrial Average. This research identified patterns or
waves that recur in the markets. Very simply, in the direction of the trend,
expect five waves. Any corrections against the trend are in three waves. Three
wave corrections are lettered as "a, b, c." These patterns can be
seen in long-term as well as in short-term charts. Ideally, smaller patterns
can be identified within bigger patterns. In this sense, Elliott Waves are like
a piece of broccoli, where the smaller piece, if broken off from the bigger
piece, does, in fact, look like the big piece. This information (about smaller
patterns fitting into bigger patterns), coupled with the Fibonacci
relationships between the waves, offers the trader a level of anticipation
and/or prediction when searching for and identifying trading opportunities with
solid reward/risk ratios.
There have been many theories about the origin and the meaning of the patterns
that Elliott discovered, including human behavior and harmony in nature. These
rules, though, as applied to technical analysis of the markets (stocks,
commodities, futures, etc.), can be very useful regardless of their meaning and
origin...
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
XRAY
took a big upside break through the top of a clear resistance level at 33.60,
which was also the neck line of a bullish, inverted head-and-shoulders pattern.
Watch for more strength out of this stock.
Daily Trading Signals
NYSE Chart of the Day
Courtesy
of Nirvana Systems
RCL
has built out a large triangle pattern and is winding up toward the apex of the
range. A breakout from this pattern could spark a move of about 7 points. Watch
42.75 up, and 40.75 down for a likely breakout move.
Daily Trading Signals
Daily Market Commentary
Courtesy of
Nirvana Systems
Updated Tuesday, 5/1 for Wednesday's market.
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Key DOW Levels for 5/2
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UP
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Above 13,175
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DN
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Below 13,025
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Late-Day Reversal...
- Dow bounces off key 13,050 level twice, rallies to the Close.
The index closed the day with 73 point gain and continues to wind up within a
large consolidation range that we will watch closely.
- The NASDAQ and S&P pulled back from today's lows after finding support
and are now building out the framework for a potential range at lows. Look for
more dancing around today's support and prior highs, as the indexes continue to
determine their next move.
Summary
The Dow closed the day higher after rallying from early lows in a determined
manner. The index continues to be within striking distance of setting new
all-time highs despite yesterday's decline. Look for more range development
from 13,040 to 13,165 before another key breakout move is seen.
Read More...
