Sorry for the late post today. I have a lot of interesting things to say about the action that closed out this second week of October 2010. But instead of trying to force it in rush fashion into this post, I would rather review some more charts and try to assemble some type of more … Read more
The gold price may have put in a intermediate term peak for now. I am not saying this is the final peak by any means, but more of an intermediate term peak as I am seeing a bearish divergence between RSI and the gold price. Also at issue is the recently discussed US Dollar Index … Read more
I just looked at the charts of some of the major banks such as JPM, BAC, and C along with the XLF and the picture is not looking too pretty in terms of the volume picture. Very notable is the downside volume today on the XLF Financial Select Sector SPDR. Today we saw the heaviest … Read more
Despite me issuing a BOT Short Signal today I have to confess that by the close today there was no major sign of weakness in the sp500. On the contrary the market rallied to an almost unchanged close right in the last few minutes. If the sp500 closes above yesterday’s high of 1184.38 tomorrow then … Read more
Today I closed out the AIG January 40 2011 Calls for a 66% return. I do not like the shooting star in AIG right now and hammer reversal, not to mention the total collapse of the BKX Banking Index. Definitely do not want to be a pig at this juncture. Plus I have to admit … Read more
I am switching to a BOT Short Signal right now at 12:06 PM Eastern time at 1173.20 on the sp500. I am seeing some possible cracks in the foundation of the current uptrend and I think it is prudent to be cautious at this juncture. The NDX is hover right at its 2010 April highs … Read more
DryShips Inc. is starting to shape up quite nicely for a possible northward breakout above the all important 5.0 level. DRYS appears to be completing a small handle formation of a cup and handle pattern. What I like MOST about DRYS is that fact that on 9/28/2010 DRYS had a 50 million share day that … Read more
The PowerShares QQQ Trust, Series 1 did something important today. They hit a price high of 50.75 which resulted in a test of the April 26, 2010 price swing high. We also closed under the April 26 high today but the key is the volume comparison. The volume today was in the 70 million range. … Read more
Today the sp500 broke northward into the ‘bullish powerzone’ also known as the trading area that exists above the 70 level RSI line. The sell off at end of day prevented a substantial move above the 70 line, but the final RSI value by the close was 70.29. So it is slightly above it. Now … Read more
Federal Agricultural Mortgage Corp AGM printed three white soldiers candlestick formation off of a significant potential bottom area. This is a sign to me that AGM is ready or at least preparing for a new uptrend. I am expecting a pull back after the recent three day move that could serve as a nice foundation … Read more