How to Move Stop Losses to Stay With the Major Trend - Stock Market Update 11-25-13

  Stock Market Update 11-25-13 How to Move Stop Losses to Stay With the Major Trend

 This stock market update video covers multiple time frame analysis of the S&P 500 tacking ETF, SPY.  The MACD indicator is analyzed at the 15 min, 1 hr, 2 hr, 4 hr, 1 day, 1 week, and 1 month time frame.  Bearish divergence is present on the MACD on the lower time frames, warning that the stock market could potentially be ending an uptrend of varying degrees.

However, price is the final say, and divergence patterns can fail to lead to meaningful reversals.  Given that we are currently in the seasonally strong time for stocks and the market is at all time highs with no overhead resistance, this is a distinct possibility.

I also show you a simple, yet very effective way to trail stops using the MACD indicator  relative to price action.  This method will allow you to stay in most large trends and failed divergence patterns until the trend is done or nearly done.

Multiple Time Frame MACD Divergence in S&P 500

Multiple Time Frame MACD Divergence in S&P 500 
This stock market video looks at the S&P 500 across multiple time frames and notes a bearish divergence in the MACD at weekly, daily, and 30 min time frames.  This type of multiple time frame MACD bearish divergence can signal significant turning points as happened in bonds in July 2012.
We review a low-low-high time cycle that suggests a possible time symmetry for Nov 19th as a high point.  Also, we look at bollinger bands and the current action relative to the upper bollinger band.
Stock indexes formed bearish reversal candlesticks (bearish engulfing patterns) today with both technical and sentiment divergences present.  I discuss trading tactics to take aggressive short entries in the market and discuss how to quickly reduce risk, while still maintaining the potential for a large gain.

A New Video Is Available

Yesterday I recorded a new video for members of StockMarketAlchemy.com.  The video covers analysis of the S&P 500, and looks at how to trade individual stocks using the analysis criteria taught in the Trader's Crystal Ball eCourse.

A detailed example analysis is done on UPL in relation to stocks and oil prices in the overall context.

If you have not created your free membership at my site, then you can do so and access the members videos by creating a password and login here.

I hope the video content is beneficial to your trading and ongoing market education.

Pete

How to Trade Bearish Engulfing Patterns - DIA Bearish Engulfing Pattern 11-7-13

How to Trade Bearish Engulfing Patterns
This stock market video update looks at the DIA etf of the Dow Jones Industrial Average.  Today formed a bearish engulfing pattern in the stock indexes which is a top reversal candlestick pattern in Japanese candlestick analysis.  Given that the market are in a short term overbought condition on technical indicators and there is a relatively large potential bearish divergence in the weekly MACD indicator on the stock indexes, this reversal could be significant.  Additionally, DIA only just poked above its September high on the charts and now has immediately reversed.  Failed breakouts are a general rule at major market highs, so we should be wary of that here.
In order to give you a more comprehensive picture of the markets I also discuss bearish divergences and non confirmations in the VIX and total put/call ratio which further suggest that stocks are at risk of some continued pullback here.  The October low is key support in my view.  A break of that low may mark a significant high in stocks.