Online Trading

FITB and CEMJQ

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Both Fifth Third Bancorp FITB and Chemtura CEMJQ have initiated buy signals as of the early morning today and based on my previous post.  Both stocks were trading in congestion ranges similar to what was occurring in the SP500 and other broad market indices.

Today they have spoken and are now part of the BestOnlineTrades Recommended List.

FITB had a really clean and clear looking uptrend since the advance began in early March.  Up until now it has been stuck in a long somewhat sideways trading range and consolidation.  But what was clear was that it was not intending to give back that much ground.  So today we see a breakout from the resistance line.

CEMJQ has basically the same story as FITB.  I think FITB had a cleaner looking uptrend but the structure of both was more or less similar.

So for now I believe the trend is your friend with these too.

I think it is always interesting to do a side by side analysis of the broad market indices and then try to see part of the broad market action in the individual stocks.  I have always found that this helped me to gauge trends either up or down.  The broad market indices are indeed the ‘mother ships’ and the vast majority of stocks tend to follow them.  Of course there are plenty of exceptions at all times, but for the most part this is what I find to be true.

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IDOI IDO Security Pinksheet Stock at a Tipping Point

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IDOI, the pinksheet sub penny stock that I have mentioned a couple other times could be at an interesting ‘tipping point’ going into today. I mentioned in an earlier post that I preferred it to make some kind of move this week otherwise I would not talk about it again.  Well we are almost as … Read more

There is a Blockbuster Trade Developing in the Gold Market

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There is in my opinion a blockbuster trade developing in the gold market right now.  It is one of those slow motion type developments that usually catches people off guard.

This has the potential to be a very big trade in my opinion.

The chart to the left is a simple representation of what I am talking about. I will go into more detail on this in future posts.  You can click on the chart to the left to see it full size. The trade developing is a combination of a symmetrical triangle pattern in the gold price in addition to very bullish seasonals coming in September 2009.  The red shaded area represents the very bullish seasonal time frame for the gold price.  The green shaded area represents break out territory of the gold price from this several month congestion area also represented as a somewhat large symmetrical triangle pattern.

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Fifth Third Bancorp FITB and Chemtura CEMJQ on the Watchlist

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I am initiating FITB and CEMJQ on the BestOnlineTrades recommended list with buy stops.  That means that they are not fully recommended yet but are positioning themselves possibly for some good upward movement.

FITB is a mid cap bank that has a fairly clean chart and has been price trending upwards for quite some time now.  It has that run away rally during early May but since that time (about 2 months) it has consolidated in a slow downward slanting wedge of sorts.

Now it finds itself kissing the up trendline as of today and so far holding ground.

So I am initiating a buy stop at 7.60 for FITB on the premise that once it is able to get above down trend resistance we could start to see a new up trend.

CEMJQ or Chemtura is the Chemicals company with large international exposure that could see benefits from a collapsing dollar price.  That one has also had a nice run along and uptrend line and done a more violent pullback back to up trendline support.  I am initiating a buy stop on CEMJQ at .2750

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SP500 Confirms swing test with Adequate Volume

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This is a follow on update to my previous post during mid day where I was talking about an important volume swing test that the SP500 was doing today.

The comparison is between the 6/11/2009 price swing on the SP500 which had an intraday high of 956.23 on volume of 1,222,768,700 (NYSE Volume).  Today we tested that June 11th swing high on the SP500.  Today’s high was 956.53 and today’s volume was 1,207,021,284 (NYSE Volume).  The close on the SP500 today was 954.21 so we ended up closing below the 6/11/2009 swing high.

It was a successful volume swing test because the volume today was only about 1.3% less than the 6/11 swing high, so we are within 3% which is enough of a signal and indication to me that the market can continue higher from here.

Note that we did close under the 6/11 swing high.  So the volume test was successful but price did not manage to close above the swing high.  So it says that we could base around here at these levels for a bit or even do a pull back to the previously mentioned heavy volume gap on the SP500.  But even if we pull back from here at the top of this trading range, the market is still saying based on volume that it will ultimately break these swing highs.

The Nasdaq, or the QQQQ as a proxy for the Nasdaq is leading the way to the upside and has already broken the horizontal swing point levels.  So that is a hint in my opinion of what is to come for the SP500.  Clearly the Nasdaq is the strongest index out there right now.

It is pretty amazing to me that this possible upside breakout is developing right as we sit here before August, traditionally one of the lowest trading volume months.  But regardless of the seasonality, we must respect what the price and volume is telling us.

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Chemtura CEMJQ is worth watching for a new up trend

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CEMJQ the specialty chemicals company is worth watching right here as I am seeing positive MACD trend as well as sustained support along its uptrend line and also slightly peeking out above its downtrend from a bit more than one month ago.

I believe that Chemtura gets close to 50% of their business overseas.  Don’t quote me on that but I believe they have a substantial portion of their business overseas. So why is this important? Well I just wrote about how weak the US dollar index looks.  If the US dollar starts plummeting, then it could have significant currency exchange benefits to CEMJQ and other multi national corporations.

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