Update on the Falling Wedge Trap

17Jan12:11 pmEST

Sunday Matinée at Market Chess Cinemas

On this Dr. Martin Luther King, Jr. holiday weekend, an excellent film about civil rights and race relations in the south in the 1960s is Mississippi Burning (1988). I must say that whenever I see this one come on television, I simply do not turn it off, no matter how many times I have seen it. Based on a true story (note Dr. King pictured...

15Jan3:01 pmEST

Like Clockwork, After Lunch

Headed into the final hour of the week of trading, stocks are bounce well off session low which were printed during the New York lunch hour. On the SPY ETF 10-minute chart, below, we can see the S&P had settled into an intraday falling channel after the huge gap down this morning. With sellers failing to hold under $187 earlier, buyers are...

15Jan12:32 pmEST

Iceberg, Right Ahead

The type of price action we are seeing in 2016 is consistent with the initial leg down in a new bear market. Nearly one month ago, we noted the confirmed major top in the homebuilders, a major part of the market which is also one of focal points of the U.S. economy and a chic bullish rotation thesis for many headed into last year. And, in...

15Jan10:19 amEST

Mirror Image Markets

In corrective or bear markets, it is often said that correlations run even more tightly than usual, in terms of inter-market analysis. Specifically, "risk off" currencies like the Japanese Yen tend to come to he forefront, as do credit markets, as opposed to healthy bull runs in equities where those correlation tend to take a backseat to the " ...

14Jan5:36 pmEST

Stock Market Recap 01/14/16 {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...

14Jan3:09 pmEST

Baby Bears Buried for the Day

If we are, in fact, going into a full-blown bear market this year, or at least a deeper correction than what we have already seen, then today's price action amounts to being a mere appetizer of what is to come. Specifically, what we preach inside Market Chess Subscription Services is the concept of being savvy, nimble short-sellers, in lieu of...

14Jan12:49 pmEST

Chasing the Chasers

With the upside reversal from this morning gaining traction, it is likely a good spot to not get caught leaning too heavily short into a long, three-day weekend (markets will be closed on Monday for MLK Jr. Day). Furthermore, the weak link of the market of late, the small and mid-cap biotechnology issues housed in the XBI ETF, are playing a...

14Jan11:05 amEST

A Quirky Rebound

After another immediate fade off strong pre-market futures, bulls furiously rebounded to stage a sharp upside reversal this morning. For the majority of this young 2016, buyers have been unable to sustain any type of meaningful bounce, simply setting up the next thrust lower. However, on the back of the "falling wedge" trap we have been...

13Jan5:17 pmEST

Stock Market Recap 01/13/16 {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...

13Jan3:22 pmEST

Update on the Falling Wedge Trap

One of the more interesting takeaways from the failed falling wedge upside breakout in the Nasdaq leaders yesterday and today (discussed in real-time here) is how much buying power and shaking out of shorts has already been used up, not just in the cash session yesterday but also with the futures shooting higher overnight. On the updated...