After 2 months of turmoil all this year since January 1 2016 to March 1 2016 looks like we have retraced 61.8 % of the original drop. Most of the stocks are making comebacks from deep down destroy3ed charts. It will take another month before we get even where we were. Its a V shaped recovery with gaps that unnerve traders in the mornings.
There are 4 gaps since SPX made a bottom in 2/11/16. These gaps occur during overnight futures pits and handed to us at open. Instead of down gaps these upper gaps. Oh what a way to bring the market up institutionally ! Here is a video please watch with major stocks making a comeback. The charts are so damaged we lot more to go before it gets normal where you can trade.
This action indicative of a bottom. After selling off for month and half long can this go on? Sell each bounce and than go back home flat is the theme. So lets see if this SPX bounce to 1900 gets shorted again. Its been a horrific year so far, just don’t forget.
Setting another low once again after a brief run up which actually formed a bear flag is typical outcome. This happened before on August 24 2015 and a double dip hammered longs into submission. The same pattern is repeating here with more viciousness. The VIX is up to 25 area and still below 30. All the charts are destroyed which will take months to repair. The destruction is widespread in tech, cloud
Market gyrations and bears growling. Its been all this year that the market has lost ground and made a lows down to 1800 , having recovered 50% it slammed again to the downside today and looked like the downward trend will continue. As long we stay above 1900 here market would either be sideways or up. Rely on nothing, always hedge your positions to the downside. Yes we do short via options but its
Relentless selling brings market below August lows once again. Where would be go now? Take a look at this video. There should be a bounce in the cards as the market is extremely oversold. Every major stock is hit and nesting against its 200 day moving average : If you like this you can use our monthly income trading by clicking below. http://indexoptionstrading.alliancemtg.com/monthly-trades/
Here is the latest on the stock market technical analysis. Take a look if you think this market should reverse this week. I believe it will because of the conditions it has created which makes stocks cheaper and technical s to reverse. If it didnt reverse SPX is headed to August lows around 1865. Please trade at your own risk. If you like you can use our monthly income trading by clicking below. http://indexoptionstrading.alliancemtg.com/monthly-trades/
This is the last trade for the year 2015. Using these option strategies and much more, we have more than doubled our accounts in 2015. SPX February Iron Condor posted 12/30/15 7:26 PST Sell 5 SPX February 1900 puts Buy 5 SPX February 1875 puts=2.00 credit Sell 2 SPX February 2175 call Buy 2 SPX February 2200 calls = 2.10 FREE TRADE UPDATED 1/14/16 The call side is closed
This has been a fabulous year for us. In 2015 we doubled our accounts and more. There have been very few losses and some of the losses taken were deliberate to avoid bigger losses. I am really proud of my performance and its a gift from God and giving us a very helpful market for income traders. We create income streams on a monthly basis. We utilize options and sophisticated derivative trading strategies.
This mornings plunge was configured in the futures which were halted before open! NDX and SPX futures both halted at NYC and that prevented the sudden crash that it was designed to happen. Since morning both NDX and SPX have recovered nicely. AAPL was down to 92 and its now 107 and green that pushed the NDX back to green also or it will go green. There was nothing anyone could have done when the these
Monday was a day of reversal. The selling stopped and bulls took control reversing the market to the upside. Take a look. This is a reversal.
click to enlarge charts After consolidation for while FB now breaking new highs. Stock overbought, may pullback here
Click to enlarge charts After nearly a month long consolidation we are seeing a break above the trend line on this classical bull flag channel. This is a bullish channel that will be bidded towards higher prices no doubt. A starter position would for AAPL bulls would be good.
Click to enlarge charts One day SPX blasts and than gets slammed. this is not a healthy behavior. No follow through or containment in the first 23.6% of Fibonacci levels. All the gains are wiped. This sounds more bearish than bullish , unless we play this again on Monday. For now sidelines are the best seats, relaxing with a soda in hand.
click to enlarge charts SPX very strong bouncing off its 100 day moving average and the rising trend line- classic text book example. The bear party is perhaps in the last hours. Closing time.
Nothing goes up all the time, neither this market. So far we are having a healthy pullback that should present us with more opportunities to get long positions in next week or so. Take a look..
Please click to enlarge
Click bottom right corner to enlarge Calendars are nice income vehicles as Dan Sheridan will say to you. They are income trades, but they have a flaw, they go bad occasionally and don’t behave they way you expected. You may have estimated the stock or underlying will not move that much and and it starts breaking out on either side up or down. There are 3 options at this point 1. Close the
This is the fourth time SPX has touched this 2000 area in last few weeks. One wonders if this will break and head lower to the 200 day moving average at 1975. The real connection may come this week. If we bounce hard and move up than this sideways move may be moot. RUT is still in sideways movement and still going on in a consolidation pattern in the weekly charts. APPL had great earnings and now
click to enlarge SPX V SHAPED RECOVERY PERHAPS click to enlarge AAPL A FALLING WEDGE PATTERN
The V shaped recovery is here. It took out all the latest selling and recovered in 3 sessions what was lost. Balance of the year should be good. watch for the Fib levels on chart that is where it is headed.
This pull back is healthy and should be looked at an opportunity to launch bullish positions when its done. I would be happy to see a Santa Clause rally and a Happy New Years with some bang. Looks like we may get it. Enjoy the video.
The SPX continues to grind higher in extremely overbought conditions. Its nearing the top channel as you can see and break will come for the bears. Right now its riskier to initiate any longs. Those on the sidelines are safe and cash can be a good alternative for a position. Major stocks are taking a tumble GOOGL, NFLX, TSLA, AMZN all are on decline. Main reason is when RUT is doing well these big
Markets make new highs in lacklustre earnings season. Take a look at SPY and SPX as it move higher the volume dries up. Making your realize less buyers are willing to commit to it. This could be an interim top in the market place and slight pull back from the new highs. The V shaped recovery has been very robust for the year and pushed up straight for a month.
The real trading season begins after Labor day weekend or next Monday and lasts till April 2015. Fall is the best time for stock market as seen year after year. Market is still in a bullish mode. The consolidation in SPX is allowing for a rest and the trend is still unbroken, however there is some sideways action at the moment. The uptrend is still intact. RUT however, is not behaving the same,
Trend is your friend and in this low volume August still on your side that is if you were bullish. These low volumes are typical for the year as most Wall street Titans are on vacay this month. For day traders and those seeking cash from the markets this can be the most frustrating month as stocks barely move, but this month it was not so bad. The dog days of August didn’t hurt so bad. SPX
Market seems to be grinding higher amid a week full of earnings in big names. There is no tell its a bullish bias as long the earnings are bullish. The second we stop this euphoria this market can drop down, because it has been overbought in this region for a longtime. Profit taking may grip the market and than back on up. GOOGL had its earnings last week and this week is filled with big name like
As the earnings season kicks off in major stocks starting with GOOGL this Thursday, expecting a bullish bias this week in the market. SPX has been pulling back a little after topping the channel but RUT is already bouncing back from the 50 day line. NDX has barely budged from the rise and break it had and still strong here. The action in CMG is sideways which may lead to higher prices as the short
Market continues to grind higher in the above mentioned video. NDX made a new high on Friday and the cup shaped pattern is proving what it should be doing so far. This index can move much higher if we are correct about the chart patterns. Same for $COMP the bullish action is all there to see. RUT is also trying to go higher and next few weeks we should some more bullishness. Major stocks are doing
SPX , RUT and NDX all showing bullish action this week. The FOMC meeting was well liked by traders last week and a promising start higher resulted in SPX and other indexes reaching new highs. However, we are nearing the upper limit of the channel here and overbought and may see a retreat at some point, but the next few days should bring more bullish upsides to the market. Most jumbo stocks which
Some pullbacks in indexes and major names this week. We are still in the bullish mode but overbought and its where profit taking takes place. With one exception of CMG that has run up 100 points in last few weeks and AAPL also ran up now pulling back. Take a look at this video. We should be looking for new buypoints in this pullback this week.
Major indexes all in rup mode for now and getting overbought. SPX almost hitting the upper channel that could bear signs of reversal. Caution with longs because profit taking may ensue. RUT was the laggard and has shown great break out type performance lately. This was a bullish channel and its break out from here to catch up with rest of them. AAPL has already split and you will see a 90 stock.
The indexes are now making new highs except RUT which is breaking out from a downward bullish channel. The market direction is still up and getting slightly overbought. The Bonds are also rallying as seen with TLT chart which intrigues most traders. Not seen this in long time. This week is interesting as the unemployment report comes out on Friday and lets see what numbers we get. Major stocks have
Major stocks are moving up as you can the in this video. SPX is grinding higher in small increments. VIX has fallen to 11.8 the lowest that we have seen in several years. There is absolutely no fear in the market at this time. Major stocks like GOOGL, NFLX, CMG and APPL are all having a run to the upside. These stocks have broken down trends and now trying to recover to their 50 day moving averages.
Hard to tell unless we get confirmation. Stocks like GOOGL, PCLN, NFLX and CMG all moved higher today after bouncing off 200 day moving averages or support lines.Everything is now governed by the downward trend lines. Unless broken the direction will remain to the downside.
The earning season is upon us for the next month. Some bullishness has crept back in the market. It looks like we have made a low on April 14 th in the SPX and may continue with the bullish momentum for now. GOOG had its share of miss in this quarter but hardly dropped down as expected. The stock survived and looks like next week cover up the losses. The chart however is far from bullish pattern.
Without much bad news the sell off is usually suspect. One week before, the unemployment report created a sell off and the market seemed to recoup from that, and for a few good trading days, the action to the upside or the bounce was faded by the bears. The current key supports in SPX, NDX and $DJI has vanished and the plunge continues towards lower moving averages and rising trend lines. SPX
As the quarter ended major stocks took a dive. GOOG, PCLN, CMG, NFLX, AMZn all dived to their respective moving averages and the profits were sucked out of the rising stars, and taken to book gains at the end of the quarter. Strange things happen towards the month end, but this was by far the weirdest quarter. The SPX stayed bullish buoyed by banking sector alone while NDX and RUT all met their
Its been a great run for some bulls and all things equal, bears got their wish list completed today as they pushed the market down to the 50 day moving averages in the indexes. The year 2013 has been a great year and very profitable one to some traders and the party continued upto now the 3 rd week in January 2014. This sell off was widely expected, since we didn’t have anything in a longtime
Feds will taper the QE3 and the market jumps on the growing expectations of a solid economy. The conditions have been improving already as evidenced by a very strong earnings season. The growth in GDP to 4% also made a strong case to buy more stocks and sell nothing. SPX has hit a new high and mostly likely will travel to the upper channel at 1840. So far the bulls are enjoying the ride. The pullback
Unable to display content. Adobe Flash is required. After harking shorts for nearly two months major indexes are showing relative weakness to the downside and pulling back. This was an expected move from every corner including the bullish traders who expected a pullback for some time. The market just cannot sustain that kind of rises. The rise in market making new highs every day has been frustrating
A better than expected job report and the market opened higher on a gap. After declining 5 days on little or no pullback, the market snapped back and held the gap during the entire trading session. The bullish action continues as it has been since October 9, 2013. Most of the indexes are in the upper channels and there has been no sell off or pullback lately. The high level consolidation is seen
The sticky behavior of the market is surprising many bears and bulls at this time. During the earnings season this is expected however. The indexes are hovering around all time highs and slowly working their ways back to the moving averages. SPX has hit all time highs of 1775 and has not pulled back to complete its cycle of making a lower highs as it has been the case for the last 1 year in the
This is the last earnings season this year, and the market is sitting high with lots of optimism in the air. The earnings have been stellar so far and some of the big names are already out and bidded high. AAPL is due next week and we shall see what this stock does. The market is overbought and way above its moving averages. When the prices are so stretched out from moving averages they are always
Wars are never a favorite thing for markets. Whenever there is this kind of political uncertainty and talks turn to war- markets react just one way- they go down. Than slowly as the fog clears those sold off stocks come back to life shortly thereafter. It becomes a shopping mall for bargain hunters. These days this tough talk on Syria has spooked the markets beyond reasonable doubts. We have seen
The earnings season is upon us and we have seen some stellar earnings in many names. Most of the S&P earnings are above estimates in the quarter so far and that is also fueling the upside in stocks. The market seems to be consolidating here after a huge rise last 4 weeks. SPX, RUT and DJI all making new highs as they inch higher bit by bit into the unchartered territory. There have been many
SPX showed up with a distribution day for the first time in this long winning streak. This was the first distribution day and the Technical damages was just barely noticeable. It was like a minor dent on the surface. We just have to see how this overbought market handles Ben Bernankes testimony before Congress on Wednesday. The market will be all ears into every word he will say or not say. Running
Ben Bernanke spoke after hours not to unsettle traders, but the futures traders reacted overnight while you and I were in lala land and pushed them high enough to gap the market double digits in the morning. This has been the story all along this rapid climb in the last few weeks. Bernanke said that the QE tapering will not be taken off unless the unemployment rate is below 6.5% or if the data
Seen the last last few sessions ? It is always a gap and go. Those gains are not achieved intra-day. Most of the movement is handed down to you. This has been the way this market is going . Friday’s job number boosted today gap and than sideways action all day. It frustrates shorts and longs at the same time. The market has been gapping up everyday, and than pulls back a little, and spends
Happy 4th of July ! I know most people are on vacation or have been on vacation since Wednesday for this week. The market was closed on July 4th but on this Friday it did open full day and we had a very important monthly unemployment report that came out very strong. The unemployment report came in at 195,000 jobs added and the previous months job reports were also revised to higher numbers. It
Unable to display content. Adobe Flash is required. SPX has been up gapping up and than fading each day. It has not been able to break above the 50 day moving average in the last 2 sessions, and there are 2 topping tails on the charts as you can see. These moves are not very bullish as the price is still below the 50 day moving average and hanging below with each days fades. If it fails to take out
MARKET UPDATE posted 06/20/13 Whew! What a drop today. Lately we were were so bullish that we forgot the nastiness and brutality of trading and today it showed up once again. If you held any long positions today , you would have taken losses or your gains evaporated in thin air in this sell off. This is the kind of cruelty the market can bestow on you anytime. Never forget the brutality of trading
The market gapped opened double digits without a shred of news. Next thing it tried to break past the 21 day moving average and clearly broke the downward trendline. Than the Financial Times reported QE program being tapered off this Wednesday. The market started selling off and came down to hit the downward trendline as in the video and bounced higher. This has been a roller coaster ride. All
The media becomes ripe with innuendo and speculation once the market starts tanking. They sell the news. There were many people mouthing off 5 % to 8% correction yesterday on major news channels. One thing you need to remember these are opinions- not facts- not anything close to being a market technician and they are not surveyor of charts and empirical data. Its one thing what you feel and think
This is the other side of the coin. There was a time when the uptrend seemed almost unbeatable. For three weeks day after day making news highs the market climbed a steep slope, throwing everyone in amazement and wonder. How can this market keep on doing that? And finally on May 22nd, SPX made a wide ranging day, and now we are 75 handles down the tube. The market is exactly where the last job
The market is appears to be moving downward in an orderly fashion and in a defined channel. After todays trading the pattern is becoming more tha obvious. SPX is flagging after a major bull run to the upside. This flag is again a bullish pattern which resolves to the upside. After todays trading the pattern is more visible. What was thought to be a bullish pennant, or a wedge like pattern, is now
What a wild ride this was last 2 trading sessions. Friday the market sold off harshly towards the end in the last 15 minutes of the day. Some folks came up armed with the idea that late Friday we can put an imprint on the chart there are no buyers in the last 15 minute and they did. It was a sneaky tactic to say the least. Did it work? Yes it did. The market opened higher today with futures trading
The market direction remains to the upside. This is grinding higher so far and some of it is sideways. Earning season is here and this will determine which direction we go. NFLX earnings were great and the stock moved 576. This last month is very busy with major earning names to come. AAPL. GOOGL, AMZN , CMG etc etc.
. This market action is not good. One or 2 days up and than a slam to the downside hugging the rising trend line. If it breaks the floor is 200 day moving average at 1900 levels. I am just a passenger watching this scenery. The uncertainty is all over the market place. The Fridays job numbers are not in yet but Friday is a holiday. So we will see the reaction on Monday.
SPX at home below the 50 day moving average. Dont know if they will crash the trend line also (Click to enlarge charts) Not quite touching the 50 day line. Maybe another day or two of selling?
Last week of December and the market still swinging higher. Low volumes all across the board and that is normal . Lets see what 2015 brings. This is the last video of the year for us. Take a look..