Funny article: November 14,th 2008
November 14, 2008 – 2:15 pmHere is a funny email that I found over on an off topic section of a forum I talk on.
Guitar Hero fans: November 14th, 2008
November 14, 2008 – 11:19 amFor those who are Guitar Hero fans like I am, Amazon as a hell of a deal on a frontman wireless guitar. Check it out.
S&P 500 Resistance: November 13th, 2008
November 13, 2008 – 5:43 pmI just did a fib retracement on a 15 minute candle chart of the S&P 500 and it seems we closed right at a fib resistance line. The intraday high on the S&P 500 was 913.01 compared to the fib line value of 913.35. Price also cut right through the 50 day moving average and we may see some resistance tomorrow as we are also awfully close to the 200 day moving average.
-Justin Moon, Senior writer for Marketchasers.com
First time I have been optimistic in a while: November 13th, 2008
November 13, 2008 – 4:57 pmI am speechless, absolutely speechless. Today is probably the most optimistic day I have had in a while for U.S equity markets. I am at a loss for words.
Take a look at this candle chart for the Dow.
Here are a few things to note:
1) The hammer formation on a downtrend. This is a huge hammer, as well as an engulfing bullish candle. The candle was engulfing on the bottom end by 2 POINTS but hell, that still qualifies as an engulfing candle. Infact, I am going to deem this a sledgehammer formation. There is no such thing as a “sledgehammer” formation but just look at that. It is a work of art. I could knock down the Berlin Wall with that thing.
2) Volume was quite large, so there was some conviction behind the buying today. Though most of the day was spent in the red, this still qualifies as a bullish indicator from a technical standpoint.
3) The intraday breach of the 2008 low close and near touch of the 2008 lows. The Dow just rocketed back up with a vengeance after hitting this point.
4) Did anyone happen to see the moves in currency today? I am speechless. The Yen weakened almost 3% vs the dollar, the euro weakened a little over 2% vs. the U.S dollar, Australian dollar strengthened almost 4% vs the U.S dollar. Has the world gone mad?
With this in mind folks, I am ontop of the world right now. Most smart traders sold off before the close but the dow close at near intraday highs and a rip roaring turnaround after a low breach is just too much for me to sell anything. With that being, we may be in for a multi-week rally but it all depends on tomorrow’s retail sales report. If this number is better than expected, we could be in for something big. I am talking about a short covering, put options chopping, 10-1 call option to put option buying, eat your heart out short term rally. It is then and only then, we can short.
Volatility: November 13th, 2008
November 13, 2008 – 2:29 pmPrecisely the reason why I have been staying out of the options game. Look at the moves in the dow. I am observing 10 point moves in the Dow per tick on my live quotes. I am seeing the dow move 60 points in 10 seconds. Unreal. In normal times, we would have 60 point moves in a day. Looks like we might be back in the good old days of October. Ooh wee!
As I am writing this, the market is rallying and rallying HARD. Was down about 250 points when I started this and is up 130 as I publish. Good Lord…
Change of pace: November 13th, 2008
November 13, 2008 – 11:36 amFor a slight change of pace, I will be doing some analysis on some longer term plays in the near future. I will still be giving short term plays, but this market is starting to get way too unpredictable to trade.
Chugging along: November 11th, 2008
November 11, 2008 – 1:53 pmEverything in my portfolio is chugging along. Bank of America, CME Group, Google and SDS are are workly nicely so far. This day has been a wash so far, but I am willing to take a wash if the dow closes down 250.
Plays for the day: November 11th, 2008
November 11, 2008 – 12:58 pmgreetings fellow chasers, here is a quick post for the moves I have done today:
-covered Monsanto
-short Google
-long Bank of America
-long CME Group
Short Biotech!: November 10th, 2008
November 10, 2008 – 8:07 pmAmazing how the the price closed right at the fibonacci fan. Time to go short tomorrow.
-Justin Moon, Senior writer for Marketchasers.com
Long tomorrow?: November 10th, 2008
November 10, 2008 – 6:21 pmI sort of wished I made these moves before the close but I was not being the computer until five minutes before the close, so i didn’t make any of these moves. Basically fellow chasers, tomorrow may provide a nice entry point into these select companies.
Applied Materials (AMAT)
Chicago Mercantile Exchange (CME)
Nike (NKE)
Bank of America (BAC)
Black and Decker (BDK)
Quanta Services (PWR)
What do all these charts have in common? The stochastics are all entering oversold territory, the %K line is rolling over, and the shares are reapproaching 52 week lows. If you look at the charts for almost all companies, the stochastics are all entering or are in oversold territory and many are approaching support levels. What does this mean? We could see a small bull run. A bit of optimism……I do hope.
-Justin Moon, Senior writer for Marketchasers.com