Charting Stocks

The Dow Jones Industrial Average breached the 10,000 level at the open and then rallied back 180 points from the low to close at 10,193. In a previous post I mentioned that the major averages were close to major support levels while approaching oversold levels. Those levels were tested today before the market moved higher.
(Chart [...]

After dropping 376 points yesterday, the Dow Jones Industrial Average is set to open down 95 points which would put it below the psychologically important 10,000 level. In my previous post, I mentioned that the ‘flash trade’ prices were real and we were heading for a retest of those lows. Currently, the major averages are [...]

Both the Dow Jones Industrial Average and S&P 500 Index are trading below their 200-day moving average.  NASDAQ bucked the trend bouncing back above it 200-day MA.
Many analysts in the technical community were unsure if the ‘flash trade’ lows were actual prices which should be included in their analysis, or merely a ‘machine’ blip which [...]

Chart of the Dow Jones Industrial Average priced in ounces of gold since 1968. The data set used divides the DJIA annual closing price by that years average gold price. Because this is annual data, some of the extreme monthly readings are smoothed out.
The bottom, in our example, occurred in 1980 when the ratio was [...]

There have been a few bright spots in the current selloff. Short (Inverse) ETF’s, which move in the opposite direction of the underlying index, bottomed in April and have been rising since. Volatility, Treasuries and the US Dollar have also been moving higher. The Dollar, however, is overbought as discussed in this previous post.
Proshares Short [...]

The Dow Jones retreated from key Fibonacci level of .618 (61.8% of the previous move) in April after the probable completion of wave 5 (Elliot Wave count).
Normally, bullish trends are characterized by 5 waves, while corrective trends are characterized by 3. Considering the market completed an upward 5 wave pattern, rather than 3, suggests that [...]

There are some seasonal factors which tend to repeat themselves in the stock market. One of which is the sell off which normally begins during the month of May. We wrote about the May factor last year and, as with most seasonality factors (May effect, Jan. Barometer)  in 2009, it didn’t work. May 2009 ended [...]

Shares of credit card companies MasterCard (MA) and Visa (V) slid 10% on Friday following a 64-33 senate vote in favor of adding “Debit Card” amendment to the bank-reform bill.
Currently, card companies receive a fee (about 2%) from merchants each time a customer uses their credit/debit card to pay for goods/services. The fee for using [...]

There’s been no shortage of ridiculous explanations behind last Thursdays  stock market plunge which took the Dow Jones Industrial Average down 1,000 points.  Perhaps the most preposterous of them all is the so called “Fat Finger” theory which suggests that some “Lone trader” accidentally shorted  S&P E-Mini futures contracts to the tune of $1 billion. [...]

The Dow Jones Industrial Average ended the last day of a volatile week down 162 points (-1.51%). While both the long and intermediate term outlook appear negative, the short term picture may improve in the coming days. It is important to note that the following is a 10 minute chart and so conclusions drawn must [...]