Charting Stocks

Technical indicators are beginning to turn negative for the first time since the beginning of the March rally. The S&P 500 index  violated its 3-month uptrend while the Dow Jones Industrial Average closed below its 200-day-moving-average. Momentum indicators have turned bearish.
The Dow Jones (Chart below) is still holding on to its uptrend line though RSI [...]

The $838 billion bailout out bill dujour won approval in the Senate by a vote of 61-37. The market reacted  in the same way as the passage of previous bailout bills – It sold off.
Why does this happen? The media is mostly to blame. They are constantly peddling false optimism while setting their viewers sites [...]

One of the ways market technicians try to predict sector out performance is by conducting a relative strength analysis. In a bear market the price charts of most sectors and stocks are moving down with the market. Some sectors are moving down more than the market, and so they are relatively weaker, and some are [...]

As of 01/02/2008 the the year price target on the S&P 500 set by the Chief Investment Strategists at the major investment banks are as follows:
Strategist Year End Price Target
Citigroup                                   1675
HSBC                                          1700
Credit Suisse                              1650
Bank of America                         1625
UBS                                             1700
Morgan Stanley                           1525
Bear Stearns                                1700
Goldman Sachs                           1675
JP Morgan                                    1590
Lehman Brothers                         1630
Wachovia                                     1590
Merrill Lynch                                1525
Average 1632
Average [...]

The Fed’s Move
Amid pressure of growing concerns of a recession, and contrary to every public comment he has ever made, Ben Bernanke stepped in to bail out Wall Street at the expense of higher inflation and a declining US dollar. His 50/50 bps cut on the fed funds and discount rates sent stock prices and [...]

Charting Stocks
September 16, 2007
In recent of posts, I’ve mentioned that 13,450 was an important level of resistance for the Dow Jones Industrial Average. On August 19th I noted that 13,458 was a key Fibonacci resistance level and thought that this would be a reasonable spot for the market to stall. I used last weeks post [...]

Charting Stocks Update
August 19, 2007
“The US government is on a ‘burning platform’ of unsustainable policies and practices with fiscal deficits, chronic healthcare underfunding, immigration and overseas military commitments threatening a crisis if action is not taken soon.
..These include “dramatic” tax rises, slashed government services and the large-scale dumping by foreign governments of holdings of US [...]

Charting Stocks
April 1, 2006
“All great inflations end with the acceptance of real money—gold—and the rejection of political money—paper. The stage is now set; monetary order is of the utmost importance. Conditions are deteriorating, and the solutions proposed to date have only made things worse. Although the solution is readily available to us, powerful forces whose [...]

Charting Stocks Update
March 17, 2007
Merrill Lynch urges the Fed to cut rates:
Merrill Analyst — “If the inflation-fighting Federal Reserve were to keep rates unchanged to contain price growth — instead of cutting by 1 percentage point in the second half of 2007 as Merrill expects — then this would put the probability of an outright [...]

March 4, 2007
The Bear Market Has Begun
(Update 2008: OK, so I was a bit early!)
In “The Coming Stock Market Crash of 2007,” I made the case for a major stock market decline based on both macroeconomic events and technical weakness emerging in the global financial markets. At the time, my view was against [...]