How To Put It Together — And Pounce
Trading is about observing, putting the pieces
together, then pouncing. This process can be made much easier for you by
consulting the proprietary research and commentary available daily on
TradingMarkets.com.
Following the major market indexes will likely be a
key to your success since as many as 80% of stocks follow the indices up or
down on any given day. The Market
Bias Indicators Page is a good place to start. There you can look for reversals patterns in the
indices using volatility research developed by TradingMarkets founder and
CEO Larry Connors. On the Market Bias Indicators Page, you will find Connors
VIX Reversals (CVR) patterns and other overbought and oversold indicators.
While these indicators of market emotion and market extremes may
individually be enough to suggest a market reversal, multiple signals from
the page create an even higher likelihood of a market reversal or movement
in the direction of the indicating arrows.
Today we had three signals suggesting a market
reversal, itself a collective sign that the indices — and the majority of
individual stocks — would trade lower. But there is another indicator you
should regularly check for and become familiar with and the pattern it identifies:
Turtle Soup Reversals. We scan for Turtle Soup Reversals on
TradingMarkets.com’s Futures Indicators Page. Stock index futures are kept
closely aligned to the cash indices and underlying stocks due to arbitrage
and program trading.
Today both the S&P 500 futures
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and Dow futures
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Turtle Soup Plus One
Sell setups. Nasdaq 100 futures left a Turtle Soup Plus One sell pattern for
Friday’s session. Putting the Market Bias Indicators and Turtle Soup Plus
One (Sell) pieces together provided a good indication that markets would
trade lower today.
The Dow is down 213 at 9332, the Nasdaq is down 48.01
at 1720.95, and the S&P 500 is down 19.57 at 1085.04.
Blue-chip Dow components are getting universally
whacked with only SBC Communications
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is getting hit the hardest here, down 8% after it missed procuring a Defense
Department contract for fighter planes. General Motors
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and JP Morgan Chase
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While no sector is up more than 1%, airlines
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are in the top spot, up .95%, with United Airlines
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owner-employees forced its CEO to step down.
Stocks are trading in a pattern that reflect concern
that this week’s slate of reports and statistics will show economic
weakness. Consumer confidence, gross domestic product, weekly jobless
figures, the monthly employment report, and factory orders are among the
anticipated reports due out this week.