Category: Trading Articles

More QE is just a matter of time

Back in mid-August I wondered if the Fed would be forced to do another round of Quantitative Easing (QE). Now I am reasonably sure that this will happen - in time. Let's consider why.

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  • Written by LA Little

Category: Trading Articles

SVXY- 65.33 target hit Update 10/29/14

Possible fear inflection point hit today- see the following 16week 4hr chart.

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  • Written by Gary Caumont

Category: Trading Articles

Are stocks washing out here?

Rather than recount the recent warnings posted here in this column prior to the financial throe currently being experienced, let's consider how this selling ends on a short term basis. With this type of set-up, the first bounce usually comes after some sort of washout move of which today may qualify. To events need to occur. First, those sectors/indexes that initially led us lower have to show relative outpeformance showing they are washed out. Secondly, all of those stockholders who are clinging to hope that this market will bounce back as it has so many times before will have to give up. We have half of the equation starting to occur but the other half remains.

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  • Written by LA Little

Category: Trading Articles

Forget the news, just read the tape

A week ago it looked like stocks were washing out and that a rebound was likely. I said as much that day. The sellers had waited the better part of two years to put their foot down and wreak some real havoc. Like usual though, all they were able to create was a short lived, fast and furious decline. Now, with a 6% rise in basically three trading days, the bulls are foaming at the mouth. I expect that they need a rest as well now.

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  • Written by LA Little

Category: Trading Articles

Three steps to staying on the right side of the market

Roughly fifteen months ago my investment stance was unequivocal - you stay bullish until there is a reason not to (see Quit Worrying About a 1987-style crash and Do not worry about a crash until it's time). Those two articles outlined a fundamental axiom of neoclassical technical analysis thought - that there is a structure to market declines. Given this fact, rather than live in fear of a crash, informed investors and traders should instead focus on identifying the potentially devastating structure that must manifest before taking significant steps to protect their portfolios. Those thoughts were ridiculed by some - embraced by others. In the end, the theory has proved to be true keeping us bullish most of the past fifteen months while most other commentators had long since given up on the bullish trend.

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  • Written by LA Little