All is Not Fine on the Rhine

13Aug3:34 pmEST

Talk is Cheap and Overtrading is Expensive

We have a market on our hands which is uniquely fit for hindsight trading, with each mini-peak and valley in the context of a sideways range lends itself to looking back in lieu of focusing on the present. While the market did stage an impressive reversal yesterday (the S&P's largest in several years, according to some statistics I have seen),...

13Aug12:35 pmEST

Who is Flying the Energy Plane?

Crude oil continues to plunge, unable to hold what could have easily been an overdue snapback rally yesterday, amid energy stocks rallying and bullishly diverging for several days now. And, yet, the action is scatterbrained today, with XOM green, while COP is down nearly 3%, for example. Moreover, the glaring laggards from yesterday, such as...

13Aug10:33 amEST

No Easy Way Out of This Town

Yesterday's sharp upside reversal in the market is taking a breather today, while beaten-down solars names like SEDG SUNE catch oversold bounces. In addition, mature tech name CSCO is seeing a post-earnings rally. Overall, though, the action is tame following the fireworks we saw yesterday afternoon. In addition to watching the biotech issues...

12Aug5:14 pmEST

Stock Market Recap 08/12/15 {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...

12Aug3:12 pmEST

The Last Seduction

It is not just to a tough market for Russell 2000 Index longs, given the pattern of lower highs and lower lows by price since late-June, not to mention price moving down below the 200-day moving average, but shorts still need to be extraordinary prudent in this trapping bull market. And with a rising 200-day moving average on the Russell, the...

12Aug12:35 pmEST

Cat Versus Deer in a High Stakes Standoff

On top of a bearish USDA report for corn and beans. John Deere is giving a chunk of recent gains as it tried to break higher from a multi-year level of resistance, seen the first monthly chart, below. Overall DE has been rather strong the agricultural machinery space, especially when you consider how weak Caterpillar has been, not to mention...

12Aug10:30 amEST

Into the Valley

The catalyst du jour for weakness in equities may very well appear to be the Yuan devaluation by China's powers that be in their command economy. But negative divergence and narrowing momentum have been brewing for quite some time making for any bit of shocking news to market much more of an excuse for a sell-off rather than a catalyst. Plays...

11Aug4:56 pmEST

Stock Market Recap 08/11/15 {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...

11Aug2:57 pmEST

A Diverging SLoB

At a minimum, one reason perhaps not to get your hand caught in the bearish cookie jar here, shorting energy stocks, would be the XLE and OIH hanging in there fairly well. While crude oil is taking a shellacking again, with USO down well over 3% today, the likes of major OIH XLE components, such as Schlumberger (or SLoB, as it is known), is...

11Aug12:34 pmEST

All is Not Fine on the Rhine

The country ETF for Germany, below on the daily timeframe, is in a precarious technical position here, as the highlighted triangle is at risk of breaking down imminently. With all the focus on China, the Fed, and Greece of late, it is worth watching Germany to see if it breaks down, considering how large of an economy it is. Speaking of China,...