Desperately Seeking Traction
If the market blows through these minor oversold conditions and momentum divergences — if the market is unable to find upside traction, then taking out the September 2001 lows in the broad averages is a virtual certainty in my mind
Focus On ETF Action
By now most of us know the story behind these instruments: ETFs trade like stocks,
are bought and sold on regulated exchanges, are not subject to uptick rules,
can be sold short, can be bought on margin, and represent a basket of stocks,
Gimme Shelter
This week all the major averages (S&P 500, Nasdaq, DJI) traded beneath their respective May 7 lows. Why does this matter? The May 7 lows represent the last price level at which any appreciable buying interest has been seen since February. We
Mid-Cap Fishing Hole
Not a particularly eventful week for the stock market. Just more of the run-of-the-mill dripping action weGÇÖve become so familiar with lately. A week ago we suggested the idea that the long-term trend remains down and that a break of the nearby sup
Bottom Picking
Last week we looked at charts of various large-cap stocks that appear to be in multi-year topping patterns. Long-term charts give us perspective. We may not trade off of monthly charts, but we always want to be aware of a marketGÇÖs potential.
Focus On Price Action
Although price
momentum was impressive early in the week, with the Dow jumping over 350 points
in two days, we still did not see the kinds of overwhelming breadth or volume statistics that would lead us to conclude this move is