Despite Friday’s positive close in the S&P 500, the NYSE Summation Index continues to fall from levels not seen since 2004. Until this chart reverses and begins making X’s, the S&P 500 remains a dangerous place for investment. As market breadth continues to weaken, the probability of a successful purchase decreases as fewer stocks are…
StockTwits chatter is tracking E-Trade as it continues the long descent to zero, hitting the lower trend line to form a triple bottom breakdown. Trading below a declining 20sma in a notoriously weak sector with more losses on the horizon, ETFC looks poised for bankruptcy, collapse, panic, all that good stuff. If ETFC can trade…
StockTwits chatter remains focused on Research in Motion, which fell 4.92% to close at 72.78. A break below 70.87 may encourage more selling, but trading above the upper Bolllinger in a rising trend calls for buying the dip. After doubling since March, more consolidation may be necessary, but if the broad market doesn’t weaken, RIMM…
Props to @gamfreek1989 for nailing the Patriot Coal short at $8.5o on Tuesday morning. Patriot Coal has found resistance above $10, and is now searching for buyers. After breaking the long downtrend, PCX’s reversal ends a rally that sent shares soaring 300%. Until some new X’s are formed, PCX looks like a sell, though I…
The S&P 500 Bullidex fell 8% to close at 215, ending the 3 month uptrend that began in mid March. This implies an increasingly dangerous market for investors as fewer stocks are rising amidst increasing volatility. Short trades like MTXX and STSI are beginning to pop up, and we’ve come a long way from the…
At 11:16 am, Matrixx Initiatives became the focus of StockTwits chatter. Trading was halted at 8.56 by 11:34, only to reopen at 6.30 over two hours later. The maker of Zicam nasal spray fell 70% intraday as the FDA revealed a rather unpleasant side effect, permanent olfactory damage. The Zicam products in question account for…
SPXHILO:VIX rose 24% to close at 193, the highest measure since September 2008. This signifies the percentage of stocks making new highs is increasing relative to volatility, a change that promotes the likelihood of successful investment. So long as the uptrend remains intact, I will continue buying stocks and the weakness in Treasuries continues to…
Interest in natural gas continues to bubble on StockTwits, but as Brian Shannon likes to say, bottoming is a process, not an event. Nevertheless, momentum appears to be reversing as the downtrend that started in July 08 begins to flatten. A low volume move below 12.87 would really flush out the remaining longs and pave…
StockTwits chatter was dominated by stocks of questionable investment value (JAZZ), so I’m taking a look at the S&P 500 ETF SPY for some perspective on the market. Despite today’s pullback, the SPY remains in an uptrend, and is trading well above the upper Bollinger. Clearly momentum has slowed since May, but so long as…
Apple dominated StockTwits chatter as they kicked off the 2009 World Wide Developers Conference with new products and upgrades. Snow Leopard promises to be a faster and leaner OS, the iPhone has finally received a virtual landscape keyboard, and the new MacBook Pro starts at $1199. Sweet. Looking back, this last post indicates that I…