Archive for March, 2009
VIX Coiling For Breakdown?
VIX is getting more interesting as we head into the second quarter. If today’s trend continues, it will post its 3rd lower high in the last three weeks. This is triggering compression at 200-day EMA support near 40. In turn, it could be setting up the right conditions for a VIX breakdown in the first [...]
Solar Stocks Firing Up Once Again
Solar stocks are setting up nicely after last week’s sharp rally. They’re pulling back with the broad market and nearing support levels that should trigger strong bounces.
My top picks lean toward the smaller cap side of the solar sector:
Canadian Solar (CSIQ)
Suntech Power (STP)
Solarfun (SOLF)
Yingu Green Energy (YGE)
Trina Solar (TRI)
Renesola [...]
Ten Pullback Plays
Here are the ten strongest stocks hitting my Dip Trip scan this afternoon.
American Italian Pasta (AIPC)
Anglogold Ashanti Ltd (AU)
Fidelity National Finl (FNF)
Iamgold Corp (IAG)
Northern Dynasty Minerals (NAK)
Palm (PALM)
Sturm Ruger (RGR)
Seabridge Gold Inc (SA)
Scotts Miracle-Gro (SMG)
Smith & Wesson Hldg (SWHC)
My favorite of the group has to be Seabridge Gold (SA), which is a current pick in [...]
The Lost Weekend
Early Notes on Monday Gaps:
* The index futures are still trading within the three-day range. Sideways consolidation in force until that breaks.
* The Nasdaq-100 shows a 9-day rising channel, with support at 1230 (QQQQ support 30.15)
* An opening under Thursday’s gaps makes it tough for the indices to trade back above those levels during the [...]
The Volume Problem
The Powershares QQQ Trust (QQQQ) is about to signal a major bearish divergence because On Balance Volume (OBV) has recovered just half the distance between the February high and March low. This is a big deal that could take considerable time to overcome, in light of the poor volume we’ve seen so far during this [...]
Still A Dim Bulb
General Electric (GE) has nearly doubled in price since the March 4th low but the weekly pattern shows little progress in overcoming the steep downtrend that’s taken control of the stock since October 2007.
Upside momentum has dried up in the last two weeks, with price now approaching resistance at the broken 2008 low and declining [...]
20-Year Bond Trust (TLT): Ready, Set, Go
The 20-Year Bond Trust (TLT) broke five-year resistance in November and rallied to an all time high at 123. It pulled back from that level, with the decline coming to rest on top of new support near 100. The fund has been moving sideways for the last two months in a basing pattern, with resistance [...]
Goldman Headed Lower?
Goldman Sachs (GS) may be setting up a reversal into the low 90s after rallying over 40-points in the last 12 sessions. It’s also possible the stock is at or near a cyclical high that triggers an even deeper retracement heading into first quarter earnings season.
The technical evidence:
* Rally into 200-day EMA resistance
* Graveyard doji [...]
Halfway Down The Pipe
Whether by tradition or technical mystery, the midpoints of wide range rally bars define support during next day pullbacks. This morning’s weak opening and subsequent failure to recover in the first hour sets these price levels into play as turnaround Tuesday progresses.
50% Monday range levels on major instruments:
QQQQ 30.28 (Nasdaq-100 index futs 1230 )
SPY 80.36 [...]
Volume a Downer on an Up Day
Volume is coming in lower than expected so far on both major exchange traded funds, despite 4% rallies. That could change in the last three hours of Monday’s session but it’s something to watch.
If you look back, you’ll notice that every bear market rally since the decline began in late 2007 has been hampered by [...]