The price drops below the 200 day simple moving average. This is your first warning on the long side to exit and wait for the 200 day to be retaken. The MACD has a bearish crossover. This shows that the uptrend has lost momentum. This is a warning sign that the market could fall as price […]
The Anatomy of a Downtrend Read More »
There are so many traders and investors that remain bullish even when the stock market is under distribution. Bull opinions during market corrections are expensive. Smart traders and investors follow the trend. They go with the flow of price action. All stock indexes need to begin to trade above the 10 day EMA consistently for multiple
7 Signals I Need to Turn Bullish Read More »
After a 10% correction in 4 weeks, people start to open their 401K statements and panic. I don’t care about tips – that is, I never ask other people for what they’ve heard or what they think. When someone gives me a tip, I always ask them very politely, “Why do you believe that? What is your signal?” When
Its a Bear Market You Know… Read More »
Here are seven of the most popular chart pattern tweets of all time. Rule 1: Wave 2 will never retrace more than 100% of wave 1. pic.twitter.com/XxgHcVZLRy — DK1 (@canuck2usa) February 24, 2015 Rule 2: Wave 4 may never end in price territory of wave 1 pic.twitter.com/wsuEYjRytp — DK1 (@canuck2usa) February 24, 2015 Rule 3:
The 7 Most Popular Chart Pattern Tweets Read More »
The 200-day and 50-day are starting to descend lower, showing a long term downtrend is developing. We are still under a bearish 50/200 day ‘death cross’. $SPY has traded under the 10-day EMA for the majority of this year, demonstrating that bears have stayed in control of the market. $187 is the short term support level for
Bulls Retreat: $SPY Chart 2/7/16 Read More »
The market loved the surprising move by the Bank of Japan going to negative rates on Friday. This was the catalyst for the Friday move forcing short sellers to cover and momentum traders to chase the move. $SPY had a MACD bullish crossover on Thursday before the huge up day Friday. The 10 day EMA
Bulls Take the Wheel: SPY Chart 1/31/16 Read More »
$SPY broke out over the 5 day EMA Friday. This shows short term momentum out of the downtrend. This is an early bull signal, but only the first. The 5 Day EMA held as support Friday. This level needs to hold to confirm this is a short term reversal. Friday’s up day was on lower volume than
First Bullish Baby Steps $SPY Chart 1/24/16 Read More »
We are not in Kansas anymore, Toto. Just as Dorothy learned that Oz was different than Kansas, new traders, perma-bulls, and buy-and-hold investors are learning that a downtrend and market correction is not the same as a bull market or range bound market. Oversold levels can become more oversold, lows can get lower, and price support
We Are Not in Kansas Anymore Read More »
I have been active in the stock market in some form for over 20 years. I have made money in several different ways, looking for a good fit for my personality that allowed me to accomplish my life goals. I started as a mutual fund investor and evolved into a trader of stocks and options. My trading
Investing Habits 101 Read More »
$SPY is currently in a correction after falling over 10% from all time highs. The 5 day EMA has been the end of day resistance for all of 2016 as $SPY has been in a strong short term downtrend. On Friday the $SPY bounced near a triple bottom support line. Friday’s candlestick was a bullish
The $SPY Chart Enters the Bounce Zone Read More »