Monday, March 24, 2014

What Will Stocks Do From Here?

As suggested in this weekend's video update, stocks have started off weak this week.  Without going into details in this post, I suspect prices will pullback a bit further, and possibly more extensively than we have seen in the last 1.5 years.  As we get into April and May we enter the traditional seasonal high in stocks, and the technical analysis at this juncture supports the prospect of a typical annual sell off this spring.

For me the line in the sand is relatively clear in that I remain bearish until further notice, as long as SPY continues to close below last week's high.  I won't speculate too much here on how far prices may decline (if they do) other than to state again that a typical stock market correction throughout history has averaged about 10-11% and lasted about 6 weeks from high to low.  And also I will reinforce the weekly time frame bearish divergence present in the MACD which would suggest that any pullback here may be of a larger magnitude than most of the minor corrections since Nov 2012.

Drop a comment if any specific info is desired.

All the best in your trading.


Saturday, March 22, 2014

MACD Multiple Time Frame Bearish Divergence on SPY

MACD Multiple Time Frame Divergence on SPY

This stock market video covers the SPY ETF and explains the current multiple time frame divergence in the MACD indicator.  There are both weekly and daily time frame bearish divergence patterns in SPY which indicate the potential for a significant high occurring at this level.

Additionally there is a minor failed breakout of the March 7th high, and a potential major failed breakout of the January 2014 high if prices continue lower below the 185 level.

Friday displayed a reversal day in SPY with the S&P 500 moving to slight higher highs, but reversing sharply and closing near the lows in a wide range day.

On the balance the technical analysis suggests that stocks are likely in a position to decline from this level, and traders should be in cash or sizing up shorting opportunities.

I wish you all the best in your trading.  If there is anything else I can do to help you develop as a trader, drop me a comment to let me know what it is or check out my trading courses.


Wednesday, March 5, 2014

How to Move or Trail Stop Losses Using a Moving Average Channel


This video shows you how to move stop losses on stock trades in order to keep you in the truly huge trends that will make most of your profit as a trader.

I show you how to set up your charts to create a moving average channel, and then take you through a number of detailed examples showing you the simple but objective and effective method for using the channel as a stop adjustment indicator.

Specific charts examples include CENX, UNG, FSLR, SPWR, MSTR, RVBD, LOGM, DPS, CCIH, and SPY.

I also discuss how to use this on any time frame and specifically how to scale out of trades but using this same stop movement method on two or more time frames once a position is entered.

Remember that you SPEND money when you enter a trade.  You MAKE money when you exit with a profit.  Exits and trade management are what separates good traders and profitable traders from simply good analysts or unprofitable traders.

Hope this helps you in your trading.