Monday, October 09, 2006
Trading Ideas &
Picks
Weekly
Market Update
Market is in the up trending channel, in which it has been for
many weeks now. More than likely it will continue in this channel. 200MA is
moving sideways, while shorter term MAs are trending up. Resistance level of
NDX is at 1700, but some profit taking and consolidation may very well occur
before resistance is taken out. If the up channel is broken to the downward,
first line of support will be 1626 - 200MA...
Trading Ideas -
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Trading Ideas &
Picks
The QQQQ Report for October 9th -
October 13th, 2006
QQQQ:
We've identified a new trendline that should become an area of support if the
bears respond to the rally and push the index lower. Another point of interest
is how the QQQQ is now substantially above the 200-day moving average, which
could also suggest that the long-term trend of the QQQQ is shifting upward
again...
Trading
Picks - Read More
Technical Indicators
Chaikin Money Flow
Developed by Marc Chaikin, the Chaikin Money Flow compares total
volume to the closing price and the daily highs and lows to determine how many
issues are bought and sold of a particular security. It is based upon the
assumption that a bullish stock will have a relatively high close price within
its daily range and have increasing volume. However, if a stock consistently
closed with a relatively low close price within its daily range with high
volume, this would be indicative of a weak security. There is pressure to buy
when a stock closes in the upper half of a period's range and there is selling
pressure when a stock closes in the lower half of the period's trading range.
Of course, the exact number of periods for the indicator should be varied
according to the sensitivity sought and the time horizon of individual
investor.
An obvious bearish signal is when Chaikin Money Flow is less than zero. A
reading of less than zero indicates that a security is under selling pressure
or experiencing distribution.
A second potentially bearish signal is the length of time that Chaikin Money
Flow has remained less than zero. The longer it remains negative, the greater
the evidence of sustained selling pressure or distribution. Extended periods
below zero can indicate bearish sentiment towards the underlying security and
downward pressure on the price is likely...
Read More...
NASDAQ Chart of the Day
CPRT
is beginning to fill a large gap to the downside on increased volume, which is quite
bearish. Watch 28.75 for signs of a continuation.
Daily Trading Signals
NYSE Chart of the Day
AYI
has filled a large gap to the downside on high volume, which could send this
stock much lower. Watch 46.50 for signs of continued weakness from current
highs.
Daily Trading Signals
Trading Education
Tutorial
Support and Resistance Levels
History Tells Us When Securites are Overbought or
Oversold
GSupport indicates a level on the chart where we can expect an
increase in the demand for a security (buyers take over). How do we know this?
By identifying this reaction to this price level in the chart's history...
Daily Market Commentary
Updated Friday, 10/6 for Monday's market
|
Key DOW Levels for 10/9
|
|
UP
|
Above 11,900
|
|
DN
|
Below 11,800
|
Consolidating...
- Dow trades sideways throughout session, continues development of
consolidation. The index lost just 16 points for the day, but continues to hold
firmly within the boundaries of a tight consolidation that has formed from
11,800 to 11,875.
- The NASDAQ and S&P each traded sideways throughout the session to end the
day slightly lower. Look for more range movement ahead of the next breakout
move.
Summary
The Dow ended the day quietly lower after trading sideways throughout the
session. The index continues to build out a tight consolidation at the highs,
which could spark the next key breakout move. Watch this range closely Monday.
Read More...
