NFLX (Netflix Inc) remains well below the top of the massive bearish engulfing topping candlestick put in nearly a month ago with the stock limping along the uptrend line generated off the June 25th lows. I realize that most have lost the will to short this market nor do we have any solid sell signals or trend reversals in place in the broad market yet.
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…)
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 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…)
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…)
On January 10th of this year, I posted one of the more reliable buy/sell indicators that I follow. I would highly encourage those interested to revisit the notes from that post which can be viewed here. As luck (of lack thereof) would have it, the Jan 10th sell signal that was given the day of that post was only one of two out of the 14 sell signals since the bull market began back in March 2009 that did not pan out (not including the two current sell signals that just triggered which mark the 15th & 16th sell signals since the bull market began). (more…)