Author Archives: Right Side of the Chart

Earnings: To Hold or Fold?

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First off, I just wanted to point out that the next few trading sessions are likely to be marked with increased volatility and above average chances for some fairly sizable opening gaps in either direction. The largest component of both the Nasdaq 100 & the S&P 500, AAPL (Apple), is scheduled to report earnings after the close today as well as another top component of both leading indices, MSFT (Microsoft). FB (Facebook) reports after the close tomorrow with AMZN (Amazon.com), another market leader, on deck for Thursday after the closing bell. (more…)

Time To Dump The Trash

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It looks like it just might be time to start dumping the trash… low quality stocks that is (or stocks of just about any quality for that matter).  At a glance, the commonly followed overall breadth measures such as the $NYAD & $NAAD (NYSE & Nasdaq Advancing vs. Declining issues ratios) have indicated that the recent highs on many of the major US indices were broad based, accompanied by relatively healthy internals.  (more…)

YUM! or Yuck?

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The chart on YUM (Yum! Brands Inc.) doesn’t look so yummy to me.  In fact, it looks quite ugly.  YUM recently pounded out a triple-top high with solid negative divergences in place on both the daily & weekly time frames.  The breakdown of this bearish rising wedge pattern on the daily chart provides an objective, well-defined short entry at current levels (YUM actually just backtested the pattern today as well). (more…)

ANR Trade Setup

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ANR will trigger a long entry on a break above the downtrend line on the daily chart below.  When trading breakouts of price patterns, waiting for confirmation of a closing print on the time frame of the chart that you are trading will help minimize getting sucked into buying (or shorting) a false breakout (or breakdown).  e.g.- If trading off a pattern on a weekly chart, (more…)

Negative Divergences

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At the risk of jumping the gun on a pending signal that’s not yet confirmed, I’d rather point this out in advance vs. after the fact in order to give traders a heads-up.  Until recently, I was focused largely on the intraday charts, particularly the 15 minute SPY chart, in order to get an early “jump” on a likely trend reversal.  However, as recently stated, my focus has now turned to the longer-term time frames… specifically the 60 minute thru daily charts.  (more…)