Wednesday, October 25, 2006
Trading Education
Tutorial
Island
Reversals
Stand
Alone Formation Speaks Volumes
Reversals tend to occur slowly, with securities forming double bottoms, higher
lows, head and shoulders patterns, etc. before starting a new trend. However,
sometimes we see a dramatic reversal immediately, and one of the best
indications of these types of reversals is Island Tops and Bottoms.
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NASDAQ Chart of the Day
UTHR
has gotten a huge breakout from a large triangle via a measured gap and
increased volume. Look for continued upside movement.
Daily Trading Signals
NYSE Chart of the Day
AXE
is getting a big upside break from a solid consolidation at 59.00, which is
highly bullish. Look for continued strength in this stock.
Daily Trading Signals
Daily Market Commentary
Updated Tuesday, 10/24 for Wednesday's market.
|
Key DOW Levels for 10/25
|
|
UP
|
Above 12,150
|
|
DN
|
Below 12,000
|
Consolidating...
- Dow continues holding at highs, resumes development of
consolidation. The index ended the day with a mild 11 point gain, but a
breakout from this consolidation could spark bigger movement.
- The NASDAQ continues to wind up within the boundaries of a large triangle
pattern, while the S&P remains within a very tight consolidation. A
breakout from either of these patterns will spark nice movement tomorrow.
Summary
The Dow continues to hold at the overall highs within the boundaries of a tight
consolidation. Look for continued range movement ahead of the next key breakout
move from this range.
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