Category Archives: Patterns

The Mid-Cap View

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Good morning, everyone. Good to see so many new PLUS subscribers from the coupon promotion I ran last night. That offer is still running, if you didn’t get sign up yet.

We’ve got the U.S.S. SlopeCharts out to sea again, and you’re going to see a steady stream of improvements. I’ll even have a couple of let you know about this evening.

As for the market, let’s look at the mid-caps, by way of symbol MDY. Here’s the short-term view, and as it plain to see, this bull run we’ve had lately has been the strongest, steadiest, and most annoying of the year. We are rammed up against the Bollinger band and the resistance trendline.

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Oil’s Triangle

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Oil, as represented by the USO fund below, had been inside a symmetric triangle for many months. It had broken beneath it, but it’s managed to claw its way back up inside. The dividing line is at $10.70, which is just about the midline of the triangle. Breach that, and oil will gather even more strength. Fail to do so, and it’s at risk of slumping beneath this large pattern again. I remain bearish oil and short energy stocks. I also own January puts against XOP.

0929-USO

He Went Galumphing Back

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As far as I’m aware the only nonsense word from Lewis Carroll’s Jabberwocky to make it into general usage was ‘galumphing’ a wonderful word evoking something large and ungainly achieving speed without grace. Still a favorite word of mine, though not one I get a chance to use often.

NDX has reversed back up on a setup I show on the NQ daily chart below, and the obvious read is that NDX is galumphing back to a retest of the all time high, though NDX still looks heavy and might fail to deliver on that.

In the meantime SPX delivered a higher high and the possible daily RSI 5 / NYMO buy signal that I was hoping to see start brewing on a higher high is now brewing, and should fix as an when this move up tops out. SPX daily chart: (more…)

Right Under the Channel

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I may regret it terribly – – or it may be my finest hour – – but I just bought a substantial options position against the Russell 2000 following the crazy surge we had just now. They are January $1500 puts against the Russell 2000 index itself, and I’m basing it on the simple fact that we are precisely beneath the broken channel for the index. I chose January to give me ample time.

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