The Forbidden Fruit

28Oct12:45 pmEST

A New Squeeze

Headed into the FOMC Announcement, after 2pm EST today, small caps are continuing to squeeze and reverse their underperformance in recent sessions. The IWM, small cap ETF, initially ripped up through the $116.15 level above which has been acting as resistance. It will be interesting to see if buyers can maintain the strength after the...

28Oct10:38 amEST

Old-Fashioned Musical Chairs Before the Fed

Headed into another big FOMC Announcement later today, small caps are looking to recoup recent losses from their relative underperformance to the major indices. Transports, however, remain weak. And biotechnology stocks, which led yesterday, are lagging this morning, in part due to GILD selling of a bit after earnings. But beyond that, the IBB...

27Oct4:58 pmEST

Stock Market Recap 10/27/15 {Video}

The following video is a brief, condensed version of the Stock Market Recap which I present each evening to members of Market Chess Subscription Services . In the longer version, I offer tons of actionable trade ideas, educational content, and in-depth objective analysis across all markets. If you enjoy my videos and blog posts, then please...

27Oct2:36 pmEST

Natural Gas: Hey Stifler, How's the Pale Ale Taste?

When it comes to natural gas, we know the commodity has been mired in a bear market for years now. Nonetheless, bear markets often feature some profitable snapback rally opportunities, usually because of the spirited, violent, squeezing (albeit short-lived) nature of the counter-trend. Indeed, this was the case in 2013 and 2014, even the first...

27Oct12:34 pmEST

You're Not Out of the Woods Yet

To follow-up on a blog post from yesterday, it is not likely that energy stocks have put in a convincing bottom as long as the likes of Chesapeake Energy continue to see what looks to be liquidation on a daily basis. Earnings on November 4th could turn the tide. But the weekly chart, below, still shows a ferocious downtrend and does parallel...

27Oct10:30 amEST

If You Like it Then You Should Put a Ring on It

The small caps in the Russell 2000 Index continue to be a drag on the action, again leading the market lower this morning. We have been tracking the "diamond" consolidation, highlighted below on the Russell ETF, as offering good context as to the recent price action and the underperformance versus the Nasdaq, S&P, and even the Dow. The diamond...

26Oct5:07 pmEST

Stock Market Recap 10/26/15 {Video}

The following video is a brief, condensed version of the Stock Market Recap which I present each evening to members of Market Chess Subscription Services . In the longer version, I offer tons of actionable trade ideas, educational content, and in-depth objective analysis across all markets. If you enjoy my videos and blog posts, then please...

26Oct3:04 pmEST

It's Not So Hot to Cyber Anymore

Despite bounces in cybersecurity plays CYBR FEYE today, the industry (contained in the HACK ETF) has lost its luster since June, notably lagging the market rally in October. In addition to small caps, junk bonds, and assorted other momentum divergences, the lack of participation from the cybersecurity stocks, supposedly future leadership of...

26Oct12:31 pmEST

The Chesapeake Watershed Moment Approaches

With earnings coming up on November 4th, energy firm CHK remains notably weak today. On the daily chart, updated below, note the recent bounce has not done much to inspire confidence in any type of discernible technical bottom, quite yet. Moreover, the risk of a few visible bankruptcies in the energy space, not unlike coal, is very much in...

26Oct10:52 amEST

The Forbidden Fruit

Headed into earnings tomorrow after the bell, Apple is down nearly 2.7% as I write this, with the $119/$120 area above still acting as resistance. On the daily chart, below, note the potential for a massive topping pattern still in play. Indeed, earnings should help give us insight as to whether another AMZN GOOGL gap higher awaits AAPL to...