Bullish move in the markets today. The VIX did not confirm very well, but the TRIN and TRIN/Q were very strong. Volume was also light today. Commodities and earnings pushed stocks higher, while the dollar dropped.
Thanks for being a part of Swing-High.com! I am sorry for the rushed post, but I have a tight schedule right now. Please be patient as next Wednesday might be the next post. I am going to Toronto this weekend to compete in the 2010 Rotman International Trading Competition for Penn State. As soon as I get home I have 4 tests to make up, so I will be very busy this week. Thank you for understanding… Stay tuned!
Happy Trading,
Jason
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The markets gapped down this morning and spent much of the day recovering. Our support/resistance lines drawn in at 107.2 and 108 on SPY worked very nicely today. Ultimately, we have an inside trading day on SPY and a relatively weak breakout of the bull flag formation on the daily chart. The VIX did drop today which adds some validity to the rally. The TRIN was bearish while the TRIN/Q read bullish. The TICK and TICK/Q both corroborated today’s action. Note the Russell 2000 (IWM) showed relative strength today.
Thanks for being a part of Swing-High.com! Always trade with a stop loss and manage your risk appropriately.
Happy Trading,
Jason
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The broad market indexes finished the day with mixed results. The S&P 500 (SPY), Dow Jones Industrial Average (DIA), and Nasdaq (QQQQ) all finished lower by about .2%. The Financials (XLF) showed significant relative strength, closing up 1%. The Russell 2000 (IWM) finished fractionally higher to flat.
The market internals gave mixed readings, which is expected on a sideways day. The TRIN was bearish today. The TRIN/Q was mostly bullish. The TICK and TICK/Q corroborated the intraday action. Finally, the VIX dropped nearly 3%, but is holding up over 25.
On the daily chart of SPY we have a lower high and a lower low. Today’s candle is also a doji. The upper shaddow of today’s candle hit resistance at the upper trendline of the down channel. From here I expect a lower swing low, but none of the signals I am seeing are terribly decisive. Volume was also relatively normal today.
Thanks for being a part of Swing-High.com! Always trade with a stop loss and manage your risk appropriately.
Happy Trading,
Jason
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Stocks rallied across the board today. The VIX only dropped about 2%, while the major indexes rose by 1% or more. I would have liked to see the VIX down at least 3% today in order to confirm the move in the broad market. The TRIN and TRIN/Q were both in bullish territory (under .8), indicating that more volume was flowing into stocks on the rise rather than stocks on the decline. The TICK and TICK/Q, though mostly used by day traders, corroborated the intraday actions nicely.
The S&P 500 (SPY) now has a confirmed swing low in place and a potential reversal pattern setting up on the daily chart. Today’s candle is a doji at the top of an up leg which could be a reversal pending a close below today’s lows at the end of tomorrow’s trading session. The upper shadow of today’s candle tagged 108 and the top of the downward channel which acted as strong resistance, sending prices back down. In order to continue being bullish, SPY needs to break above the upper line of the channel and the 108 mark. Otherwise, we may see a lower swing high and continuation to the downside.
Thanks for being a part of Swing-High.com! Always trade with a stop loss and manage your risk appropriately.
Happy Trading,
Jason
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The markets sold off on light volume today. The Dow Jones Industrial Average (DIA), Russell 2000 (IWM), Financials (XLF), and Nasdaq (QQQQ) all showed relative weakness to the S&P 500 (SPY) today. The VIX only rose 1.5%, which is not really enough to confirm the move lower. The TRIN and TRIN/Q both finished the day in bearish territory, indicating more volume flowing into stocks on the decline than stocks on the rise. That is a bearish sign. The TICK and TICK/Q were fairly neutral with some bearish bias, especially into the close.
On the daily chart of SPY we made a higher high and a higher low today, which is technically bullish, but in reality, today’s move was a little more bearish than bullish. We really need to see a close higher than today’s highs in order to mark a swing low here.
There are a bunch of potentially market moving earnings reports coming out before tomorrow’s trading session, so keep your eye out for any big surprises there. There are also some minor economic reports coming out tomorrow, but they are not heavy hitters. Wednesday, Thursday and Friday are going to be big days in terms of economic reports that have the potential to really move the markets. Keep your eye on the economic calender as well as earnings dates for particular stocks you might be trading/watching.
Thanks for being a part of Swing-High.com! Always trade with a stop loss and manage your risk appropriately.
Happy Trading,
Jason
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