Extend and Defend

11Mar12:49 pmEST

Miller Time at the Junkyard

In addition to the ECB this week, the rallies in high yield corporate and junk bonds (HYG and JNK, respectively) look to be aiding the financial and energy sectors. Regional banks, in particular, look most relieved, with the KRE ETF up over 2% as I write this. We profiled ZION as a quick long idea for Members last evening. And I suspect if HYG...

11Mar10:59 amEST

Slight Improvement in the Grand Scheme of Things

The improved price action in the global materials mining complex, precious and otherwise, has been noteworthy throughout the winter months. Nonetheless, the abrupt downside reversals we are seeing in many parts of that sector this morning serve as a good reminder that even the most promising of bottoms (assuming that is what is in play at the...

10Mar5:17 pmEST

Stock Market Recap 03/10/16 {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...

10Mar3:38 pmEST

A Prime Example

Headed into the closing bell, stocks are well off session lows, as the S&P 500 circles back up what has been a big battleground area at 1990. Amazon experienced intermittent website outages today, but that still did not galvanize bears enough to breach the 200-day moving average, the yellow line on the daily chart, below. On the other hand,...

10Mar12:47 pmEST

Toying with Fear

Despite the glaringly weak action in small caps and financials this morning, in effect leading the market lower after the initial ECB pop, volatility is still fairly subdued. True, the market may be punting on making a bonafide directional move before The Fed next week. But I suspect if the VXX, VIX ETF, clears the $23 line and holds over it,...

10Mar10:55 amEST

Mario Announces That Gluten Free Pasta Will Cure Diabetes in Europe

Another "bazooka" came out of Europe this morning, though based on the various reactions across equity markets it hardly seems like a panacea and more like an attempt buy Draghi to argue that the monetary equivalent of his gluten free pasta will cure deflation diabetes across the pond. To be sure, those who tried to get cute and lean into Euro...

09Mar5:12 pmEST

Stock Market Recap 03/09/16 {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...

09Mar3:24 pmEST

Hang 'em High, Hang 'em Low

Stocks are still drifting into the ECB tomorrow, with less feeling like more in general, in terms of price action and setups. The XBI, ETF for the small/mid-cap biotechnology issues, illustrates what is happening with many charts here--The 50-day moving average acted as resistance earlier this week. But now the 20-day moving average is being...

09Mar12:50 pmEST

Flatter Than Schiacciata Into Draghi

In front of another European Central meeting tomorrow where Mario Draghi, president of the ECB, must likely deliver the goods in terms of sufficiently easing to please markets. Unlike in December, Draghi knows he simply cannot disappoint, leading to high stakes and a virtual wildcard of additional risk for just about any trades across all asset...

09Mar10:47 amEST

Extend and Defend

On the back of another short squeeze higher in crude oil, post inventory report this morning, stocks are attempting to build on their opening gains and bounce back from a poor close yesterday. For context and for trading, we are keying off the IWM (ETF for the Russell 2000 Index small cap stock) 30-minute chart, seen below. The bear flag...