Technical analysis rendered obsolete? Bullshit!

Has technical analysis been rendered obsolete? In its most simple form, trend following, it has worked better than most everything else during this liquidity-driven market. But when you add Japanese Candlesticks into the mix you can get a few surprises.

Many market followers now use Candlesticks, but not everyone knows how to read them properly, especially at turning points. Notice the well defined Doji Cross at the very top of the marginal high made in the DOW at the beginning of the month. Doji’s are notoriously good at anticipating a change in trend. 

This is the kind of analysis you will only find at CreateCapital.

My one and only prediction for 2011 was that markets would look remarkably similar to last year. So far so good. Interestingly, many of the old problems have not gone away and there are a host of new ones. Yet markets remain near post-crash highs.

To figure it all out,  I will be hosting a week of “The Scott Bleier Show” for IBC members and guests, for free. Come to my new site @ CreateCapital.com.

Your user name: ibcfree.

Your password is: createcapital.

These credentials will give you access to the “Video Show” portion of the site starting Monday morning and you will be able to see the show, live, each morning for the full week.

If you want to join the chat–and I suggest you do–open a uStream account here. Feel free to ask me to look at individual stocks for you in the second half of the show.

This free promotional week also comes with a discounted offer to become a yearly CreateCapital Member. To be sure to get $100 off the yearly membership, you MUST use THIS LINK to join. It assures that you get the discount and that IBC is your referring affiliate.

Feel free to Tweet this as you see fit and SEE YOU THERE!

So, everyone is excited because we have an Internet IPO that is flying. Whoop. Did you get any? Didn’t think so. Wanna buy it here? Didn’t think so.

From Tuesday morning until 10am today, the market has been driven up for 12 hours straight. We had been correcting for the past 2 weeks, since achieving SPX 1370 and tested 1320 on Tuesday morning, a loss of 50 points. Today’s peak made back exactly half of those losses. If I knew any better, I would say that is Bear Market action.

You see, in a Bull market most of the time is spent in an uptrend and corrections are short, sharp and recovered quickly. As the trend changes from Bull to Bear, the market spends most of its time trending lower and upside corrections are short, sharp and given back quickly. Warning, trend change may clearly be underway.

Forget about QE and the silly debt ceiling. Look at the chart of the SPX for a minute. We’ve made a marginal new high just above a perfect double top, and that high has been given back and slightly broken. This is the first time that has happened since before QEII began. We’ve also broken below the middle Bollinger Bands for the daily and weekly charts. Don’t believe me? Go look at my charts on CreateCapital.com.

 What few are talking about today is the GS downgrade of INTC and the semiconductor complex. If they are correct, its implications are ominous for the entire market. We’ve owned INTC since $18 and we sold it today, locking in our 25%+ profit. I would hate to have seen that profit given back.

Don’t worry because commodity prices will stabilize around their recent whole numbers and equities will whipsaw around as we work our way to the Memorial Day holiday. I’m off to buy some LNKD, see you later. NOT

Since the first hints of QEII last summer, the Nasdaq Composite has been below the middle Bollinger Band only twice in the weekly trend chart and for only one bar, during the week of March 18, and for a brief moment during the week of April 22.

We are once again challenging the middle band near 2770. A break would mean a violation of the trend would be a foregone conclusion. And just .5 more days like today in the Nasdaq and we are there. And the daily chart is challenging the LOWER Bolling Band and on a negative divergence…The downside targets for the majority of stocks would be the primary breakouts made during the QEII ramp.

I can answer ANY questions about important technical levels on ANY stocks if you are CreateCapital yearly member…

My focus is two-fold. First, the intermediate-term cycle trades that are mostly off the radar screen. That has been the heart of my work for over a decade, and that is where today’s chart from last month comes from on ENOC. The stock is up a ridiculous 28% today. You will find my work at CreateCapital.com

And I have introduced our new “7 Day Trades”. These are very select stocks that I expect to move over a near-term time frame. I will not be trading as much as they Boys do in the Pelican Room. Far from it. But it will be near-term in focus. My first stock last week was BORN@$9.15 just after earnings. Again, at CreateCapital.com

Have a close look at this. Can you say, “Target 800 then 760?”

From CreateCapital Premium http://www.createcapital.com/