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.

Read more: Are stocks washing out here?

  • 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.

Register to read more...

  • Written by LA Little

Category: Trading Articles

Bearish view keeps building

Two weeks ago we considered how Shades of 2007 were evident in the current market and just last week we talked about the need for trench coats and umbrellas. A week later we need to add some knee-high rubber boots to our survival gear and consider a life jacket.

Register to read more...

  • Written by LA Little

Category: Trading Articles

TNA- 49.46 short term target or bounce Update 10/21/14

TNA closed at 55.40 last Friday under two important targets- see the following 33week 4hr chart.

Read more: TNA- 49.46 short term target or bounce Update 10/21/14

  • Written by Gary Caumont

Category: Trading Articles

$INDU- 16405.2 target + possible ending diagonal Update 10/18/14

$INDU is poised to break the lower trend line of a large rising wedge- see the following 43week daily chart.

Read more: $INDU- 16405.2 target + possible ending diagonal Update 10/18/14

  • Written by Gary Caumont