Thursday, October 19, 2006
Trading Education
Tutorial
Volume Climax
Volume
Helps Identify Reversals
Various price patterns can alert us to potential reversal candidates. Trendline
Breaks, Support and Resistance Levels, Fibonacci Retracement Levels and other
price information are valuable in determining a change in direction for a
security. However, one of the most overlooked chart patterns that help us
determine reversals is not reflected in the price itself. Volume climaxes are
easily identifiable and valuable in assessing a change in market sentiment.
Read More...
Trading Ideas &
Picks
YHOO
- $25 level to give the bulls some difficulty
YHOO:
The bears have recently pushed the price below the psychological support of $25
- a level that we'd expect to give the bulls some difficulty when they try to
push the price higher again...
Trading
Picks - Read More
NASDAQ Chart of the Day
NVLS
has broken a clear trend line to the downside via a large gap and high volume,
which is quite bearish. Watch for continued weakness from this stock.
Daily Trading Signals
NYSE Chart of the Day
CPB
has formed a large saucer top formation at the highs, which is quite bearish.
Watch for a break through support at 35.50 for selling pressure to occur.
Daily Trading Signals
Trading Ideas &
Picks
Swing
Trade of the Week
SRHAT: Setting up nicely for a continuation of its current downtrend.
Stock broke past support and to new trend lows, then traded today at the lower
end representing a consolidation and possible setup for further downside. Look
to go short at 18.92...
Trading
Ideas - Read More
Daily Market Commentary
Updated Wednesday, 10/18 for Thursday's market's market
|
Key DOW Levels for 10/19
|
|
UP
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Above 12,100
|
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DN
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Below 11,925
|
Target Reached..
- Dow reaches all-time highs at 12,000, hits consolidation target
as well. The index closed the day calmly lower by just 43 points, but could be
gearing up for another big move.
- The NASDAQ and S&P each sold off from early gains today and could be on
verge of heading lower. Watch near-term support in the NASDAQ, as this could
tell the story tomorrow.
Summary
The Dow closed the day well of the day's highs after setting all-time highs yet
again within this overall uptrend. The index looks like it may have topped out
now, however. If the index gets a break through the major lower trend line at
11,925, we could see big selling ahead.
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