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"Bull markets are born on pessimism, grow on skepticism,

mature on optimism and die on euphoria."

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The same cycle happens on a smaller scale too.

Within weeks and months.

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Swing trading is about buying pessimism and selling euphoria.

As often as possible.

McClellan Summation Index highest since May 2013

McClellan Summation Index  is one of my favorite indicators when trying to find bottoms. Notice the areas shaded in green on the chart, very good accuracy.   It is not as [...]

April 21st, 2016|

New Bull Market For Gold Miners

At the moment I am writing this GDX ( gold miners ) ETF is trading at $23.74. That is 91.45% up from the low made on January 19th this year. [...]

April 20th, 2016|

Expectations

Q1 earnings season is on. And profit expectations are not good. Actually they are very bad. Here's a chart showing the biggest quarterly drop since 2009: Should that scare you? [...]

April 12th, 2016|

How to use a moving average

You may have heard about a golden cross or a death cross. It is nothing more than a fast moving average crossing above the slower one and vice versa. Mainstream business [...]

April 8th, 2016|

Mean reversion is behind 5 best stocks this year

As of April 5th top 5 best performing S&P500 stocks YTD are: Newmont Mining ( NEM ) +51.89% Urban Outfitters ( URBN ) +41.14% Michael Kors ( KORS ) +39.54% [...]

April 6th, 2016|

SPX Price Analysis

As shown above Market Is Range Bound and S&P500 is currently entering the sell zone.  Extended Short Term Up Move within Longer Term Sideways Market -------------------------------------------------------------------- Long Term Trend Still [...]

March 30th, 2016|

Charting ex-dividend days

Got an interesting question from a subscriber today. Vereit ( VER ) is trading at 8.73, that price is quoted both on stockcharts.com and finviz.com yet charts are different. Stockcharts displays [...]

March 29th, 2016|

Price channels and how to trade them

What you see above is S&P500 daily chart with 2 parallel blue lines ( a channel ) and RSI momentum oscillator above. Channel can be drawn after we have 3 points in. [...]

March 24th, 2016|

Tesla: 3 lessons in 1 chart

Lesson 1: Tesla is flat Year-to-date. It will likely end quarter that way or very near too. And take a look at the swings within  - huge moves! It shows how [...]

March 21st, 2016|

Short Term Top

I sold a lot of covered calls today. No, it is not due to summer 2015 pattern signaling a top today, altough the analog is fascinating  More importantly: complacency has [...]

March 18th, 2016|

Basic Problem with Leveraged ETFs

Leveraged ETFs have become the favorite retail trader's instrument and many are not aware of the hidden cost. I'm talking here about equity ETFs such as UPRO, SPXL, SSO, SPXU, [...]

March 18th, 2016|

Big Picture: Bull & Bear Case

Bear case first: As seen on the above chart the 200day simple moving average of S&P500 changed it's direction for only the 7th time in last 20 years. That trend is [...]

March 16th, 2016|