Wednesday, October 18, 2006
Quantum
Swing Trader - Where Stock Market Potential Becomes Reality
Trading Education
Tutorial
Trendlines
Determining
Market Reversals and Continuations
Trendlines are perhaps the oldest tools known to chartists. Trendlines form
across peaks and valleys called pivot points - relative highs and lows in a
chart. As more points form along a line, it becomes more
"established". This means that, when the line is broken, it will
likely follow through with a strong move in the new direction.
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NYSE Chart of the Day
EAT
is holding within the boundaries of a very tight consolidation from 39.50 to
42.50. A breakout from this range could spark key movement. Watch it closely.
Daily Trading Signals
NASDAQ Chart of the Day
BRCM
has formed a large triangle consolidation at the lows of the key summer
decline. Watch for a solid breakout from this range for the next big breakout
move: 32.00 up, and 28.00 down.
Daily Trading Signals
Daily Market Commentary
Updated Tuesday, 10/17 for Wednesday's market's market
|
Key DOW Levels for 10/16
|
|
UP
|
Above 12,000
|
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DN
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Below 11,875
|
V-Bottom Reversal
- Dow sells off sharply at Open, but recovers bulk of losses with
v-bottom reversal. The index held firmly at 11,900 and eventually rode a solid
v-bottom reversal back toward the day's highs for a much smaller 31 point loss
for the day.
- The NASDAQ and S&P each sold off heavily to begin the day, but staged
impressive recoveries to the Close. Each index could be on the verge of an even
greater breakout move soon.
Summary
The Dow ended the day with a modest loss after selling off sharply to begin the
session. The index looks to be winding up within a very large consolidation
pattern at the highs, which we will continue to watch closely for big movement.
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