EDITOR’S NOTE: Here in California, the market opens at 6:30 in the morning. I typically get up at about 6 a.m. and get ready for the day. At 4:44 a.m., molecool emailed me saying he had put up a “time-sensitive” post and asked me to put it up. It basically called for the market to shoot higher (which, 45 minutes later, it certainly did). I wrote to him and apologized for not posting it, but he’s asked me to post it anyway, just to show what was behind his thinking process; so here ya go:
This is a special early morning briefing as things are on the move on the equities side and there is little time to waste. Overnight equities managed to cover some ground and we are now approaching (or have already breached) several of the inside period long triggers I posted yesterday evening. But what’s even better is how the short term charts are currently lining up with the daily triggers – observe: (more…)
What a strange looking glass world we live in nowadays. The NFP figures strongly beat 204 vs 148 expected this morning and this good news prompted a strong immediate decline on ES, as good employment numbers make QE tapering more likely and therefore are bearish for equities. (more…)
One of my readers from my subscription service sent me this picture last night, and it has been on my mind all day.
Simply put, he overlapped the SPY with the T2107 chart, and what we get is mind boggling.
Since June as the market is climbing higher and higher, fewer and fewer stocks, on a percentage basis, are trading above the 200-day moving average. (more…)
Three weeks ago today, near the low for the last move down, I was writing that the weekly S2 pivot was decent support, and that while ES was then below it, there was a good chance that it would close the week back above it. Today ES has broken above the R2 pivot at 1769, and given that the weekly upper bollinger band on SPX is in the same area, there is a very good chance that ES will close the week back below it. What I’m also seeing this morning on ES is that there is confirmed negative divergence on the 60min RSI, the confirmation being that RSI has dropped below the low made after the first RSI peak. Will ES decline from here this week? FOMC may determine that of course but in normal circumstances that would be likely. ES 60min chart: (more…)
It was pointed out yesterday that the FOMC announcement is actually on Wednesday and so there is another day’s grace while we wait. Ranges tend to be narrow on pre-FOMC days and I’m expecting the gap today to fill. (more…)
Coach (COH) took a header on earnings last week…
But it was punished far too much. (more…)
A thoughtful Sloper (are there any other kind?) wrote me this morning to mention what a breathtaking setup was taking place on index ETFs vis a vis their 50% linear regression channels. (Party Pro Tip: use the aforementioned sentence, without the parenthetical remark, at a forthcoming social event; members of the opposite sex will gather and swoon). I hereby present to you my charts on this matter: (more…)