Wednesday, September 20, 2006
Trading Ideas &
Picks
CRE -
Coming Out of Channel
CRE:
Tight lower channels such as this one are common in this market and here we see
this stock starting to come out of channel now. Buy point is when the stock
moves over the line...
Trading
Ideas - Read More
Trading Ideas &
Picks
SNDK
- Could Use a Rest
SNDK: This stock could use a rest after a 50% move off its lows, but if
the market wishes, this stock just might be on the move again. Next buy point
is when the stock makes a move above the trendline at $60...
Trading
Ideas - Read More
Trading
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NASDAQ Chart of the Day
SAPE
has formed a great saucer pattern and could really get a huge breakout move
from this pattern. Watch the lip of the saucer at 5.50 for a potential upside
break that could send the stock back toward the 8.00 zone.
Daily Trading Signals
NYSE Chart of the Day
EDS
has formed a large triangle consolidation at the current lows and looks poised
for a solid breakout. Watch 24.75 up, and 23.70 down for the potential breakout
move.
Daily Trading Signals
Technical Indicators
On Balance Volume (OBV)
On Balance Volume (OBV) is a momentum indicator that relates volume to price
change. Joseph Granville presented the idea that volume will precede price in
his 1963 book, New Key to Stock Market Profits.
On Balance Volume keeps a running total of volume flowing into or out of a
security. When the security closes higher than the previous close, all of the
day's volume is considered up-volume. A close lower than the previous day's
results in all of the day's volume considered down-volume. A rising OBV is
defined as a sign of smart money flowing into a security. As the public then
moves into the security, both the security and the OBV will surge ahead. If
price movement precedes OBV movement, Granville calls this a
"non-confirmation." Non-confirmations can occur at bull market tops,
when the security rises before/without the OBV or at bear market bottoms when
the security falls before/without the OBV...
Read More...
Daily Market Commentary
Updated Tuesday, 9/19 for Wednesday's market
|
Key DOW Levels for 9/20
|
|
UP
|
Above 11,625
|
|
DN
|
Below 11,470
|
V-Bottom Reversal
- Dow sells off heavily to begin session, but gets key reversal to
rally to the Close. The index dropped back to the 11,480 zone, but got a highly
bullish v-bottom reversal that sent the index back to 11,550, essentially
ending the day with a 14 point loss.
- The NASDAQ and S&P each reversed sharply from early lows, but continue to
look vulnerable to potential selling ahead. Continue to watch near-term support
for broader direction.
Summary
The Dow ended the day with a nice reversal from lows, but continues to be
vulnerable to a potential downside break through the major lower trend line.
Continue to watch 11,470 for major selling pressure; while keeping an eye on
11,600 for another shot at new highs.
Read More...
Trading Education
Tutorial
Support and Resistance Levels
History Tells Us When Securites are Overbought or
Oversold
Support 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.
Read
More...
