It’s snowing here in MD!
I saw this article on iTulip about how wholesale liquidators, the companies that sell goods for companies that are going bankrupt, are themselves going bankrupt. In addition, just sampling losses in tech jobs, the trend seems pretty clear to me. The bad news keeps pouring in, yet the market holds. Odd, no?
Also, the updated chart on yesterday’s Existing Home Sales data:
Yesterday, we formed a doji, or for some technicians, a small shooting star. Clearly, we are flagging on lower volume. This is ‘healthy’, but is usually signals a continuation in the prevailing trend. I will not put overnight money to work until we clear this 800-855 level on the SPX, otherwise, you’re bound to see more faking. This consolidation area is purely a daytrader’s haven, so if you’re swinging, it’s good to wait for a breakout or breakdown.
I am still focusing on the financials, because they are forming very clear flags and pennants on lower and lower volume. What you want to see is a breakout of breakdown on much greater volume that usually exceeds the past 2-3 days’ volume levels. They will make really great swing trades when, like I said, the time is right.
Finally, countries in a recession or pretty damn close to one:
Gee, Thanks for the uplifting news. I better get my seed orders in for the “Greater Depression” garden, before the seed companies go under. I guess the bear market rally won’t be showing up… 😉
How is Mexico not hurting ???? Does Grey mean dead ?
So far, least affected.
Africa wins.
Dear CA,
Please inform me when we are forming a head and shoulders bottom for the entire economy. I’m am beginning to grow tired of this recession and everything that comes with it. I no longer have friends that want to go to sporting events or out drinking with me. I need to know when they will have money again to join me in my escapades.
Best,
Aren’t we all cheery this morning? 🙂
Chart Addict, do you trade various equity instruments? Or do you limit yourself to certain etf’s or stocks?
I got stopped out (buy to cover) at $84.24 on SPY, but I will go long again if we close above $84.24 and short if we go below $80.57.
My Heiken-Ashi candlesticks went positive yesterday, but this thing needs to close solidly above or below the consolidation zone (80.57 and 84.24) before I jump back in.
This is too much see-sawing.
squirrel – I will, but in the meantime, we will all be drinking out of bottles huddled near a fiery garbage can.
Spaniard – I trade most stocks and ETFs.
Candles work the very best near the close for swing trading. I’ve seen too many times where a long marubozo in the morning turns into a shooting star by midday, then into a dark cloud cover by the close. There are other examples, but I usually place swing trades at the end of the day. As for day trades, that’s purely discretionary for me.
Excellent, that’s excellent, because the method I’m trying to build involves swing trading based on daily candles. Thanks, man, much appreciated.
SHAMWOW wins!
hey, canada isn’t feelin it 😛
Spaniard, I’ve read a little research, not exhaustive amounts thought, that showed candles to have very little in the way of predictive power. You may find that you have to combine candle analysis with a couple of other variables like moving average and volume.
For example, a hammer on better than average volume is not the same as a hammer on less than average volume. Put the same hammer on volume directly above a major moving average, and you might have something.
Financials look bearish to me. GS looks just like JPM chart too..
Oh, absolutely, Woodshedder, in addition to candles, I’m using volume, RSI, the wall street journal’s money flow list, support, resistance, moving averages, trend lines, and prior behavior of the particular stock in similar technical situations to try to create a discretionary system.
I’m trying to devote 5 hours a day to this…since I work at a brokerage, I’m looking at the stock market all day…tick, tick, tick…and I’ve got a little over 60 books on the market in my library, (most of which I’ve yet to start).
Good luck to all, and thanks for the tip!
I have been sitting in cash (in the bleachers) the last two days.
Watching and waiting for something…not quite sure what!
One way or the other we need to move out of no-mans land.
Wood speaks the truth.
The financials are the most bearish. Just one massive up or down day will trigger whatever trend is coming for the perfect entry.
I’ve been sitting for a day now doing jack. We may get a breakout or breakdown tomorrow via Fed Day. The market is telling me that it’s definitely waiting for something, that’s for sure.
didn’t do shit all day.
Hahaha, the Middle East has no affect to the recession at all, and the map just helps that fact… Nice and gray in their territory… Wonder why =P
ZM
good post chief