As shitty as the economy may be, the NASDAQ looks like a buy to me. Risks remain high, but the situation’s changed, volatility is dropping and stocks are the rage. Consider nibbling at your favorite stock, Amazon (AMZN) might be good for a pop. No one can say how long this will last, and it…
Price is the only thing that pays, but it’s not the only thing to watch. Although the NASDAQ was up more than 2.5% today, 3 of my indicators remain bearish. Chart 1: QQQQ (NASDAQ 100 ETF) is falling with volume not seen since Lehman’s went bust, yet it remains above the November lows. This feels…
Despite the media frenzy over high unemployment and other worrisome economic headlines, there are signs the global markets are stabilizing, and that risk taking is increasing. I have a shit ton of charts to prove this point, way too many for the average Joe, so I’ve narrowed it down to 5 for this post. If…
A rundown of various market themes for tomorrow’s trade. Despite the hefty haircut in the QQQQ’s, my NASDAQ indicator is still bullish. Buy the dip is still in play until I see some O’s, but I’m taking very small positions. The BXM/SPX ratio is bearish as long as it is printing X’s. Nevertheless, it is…
On final chart post for this weekend. My NASDAQ indicator keeps printing X’s signaling lower volatility and more bullish stocks. The intervention I was looking for here is underway. Don’t fight the BOJ until you see another X printed. Gold and precious metals like silver continue to put in nice uptrend work. This remains the…
A few ratios to discern the state of the market. My NASDAQ indicator printed a new X today despite today’s fall. Lower volatility is bullish. The BXM:SPX ratio is banging against the 10sma again, hopefully it will act as resistance and the spread will turn around (bullish). The continuing fall in Treasury yields is quite…
According to my NASDAQ indicator, the market is stronger than the pre-election rally. Buying dips in sectors breaking out of bases is the way to play. At some point I’ll make a rundown of sectors I think are hot, but gold miners are clearly the group to beat. A return to prices seen before Lehman’s…
A few market signs for the lost. The following precipitous graph is an example of the impact the financial crisis is having on the real economy. The BDI indicates how much shippers get paid for carrying freight. Due to the unwillingness of banks to write letters of credit for merchandise, shipping is mired in a…
I’ve been doing more tinkering with stockchart.com’s free P&F charts. I like Point and Figure over Candlesticks because price can be scaled to Average True Range, which helps expedient trend recognition. If you aren’t familiar with ATR, look it up and read something by Van Tharp. Aside from charting, Average True Range is a statistical…