Last Monday, I posted that the Dow was lagging the other markets and was comparatively weak. This often flags a trend change, though it can take a short while to unfold. I mentioned to watch for weakness in the Nasdaq, looking for the Naz to break support. Well, that didn't happen, but on Friday, the Naz failed to make a new high along with the other markets (see red … [Read more...]
Time to be wary
Although the S&Ps made new all-time highs last week, the Dow did not. Wyckoff talked extensively about comparative strength and comparative weakness. When related markets fail to make new highs together, you need to sit up and take notice. We saw this in January when the Nasdaq made new highs, but the S&Ps and Dow did not (see A on the chart). This comparative … [Read more...]
Rally Dying?
Or is it just a pause? As we await another winter nor'easter here in southern New England we are trying to stay warm and figure out what the likely next move of the market will be and how much snow we will get. The weather seems easier. It's been very cold here lately. I awoke this morning to one degree above zero (that's -17.22 Celsius). It's what we call pretty nippy. … [Read more...]
Big Morning Up
The S&P futures had a good run up this morning. Just before the US Open, the market tested the overnight lows (T) and took off. You can see the demand that came in off the US open, confirming the test (D1) and indicating the overnight high would break. The short pause here had light downside volume, opening the door for buyers to come in, and they did (D2). Buying … [Read more...]
The Day After A Trend Day
One of my favorite days to trade is the day after a trend day. Yesterday was a big trend day down. Sometimes, it is hard to get aboard a trend day. Yesterday, there were several opportunities to enter short, but even so, traders often report that trend days can be frustrating events. Trades are taken off too early and sometimes it looks as if the market is bottoming, but it … [Read more...]
