Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Rebound Opportunities

Stock-Markets / Financial Markets Oct 21, 2008 - 01:59 PM GMT

By: Weekly_Wizards

Stock-Markets Best Financial Markets Analysis ArticleOur Wizards Jack Steiman, Mike Paulenoff and Harry Boxer weigh in this week on the direction of the markets. According to Steiman, author of SwingTradeOnline.com : Many triangles or flags are in place on the index charts, and for now we must realize that these are bear and not bull flags until they can be taken out to the top side of those triangles.


On the 60 minute chart the S&P 500 has a triangle from 940 to 980. That got taken out to the upside Monday -- thus a good first step. Not a blowout, but it did close on the highs and thus it definitely broke out although again, higher would be nicer in terms of true confirmation. On the daily chart the top of the triangle is at 1030, or 45 points away, and that's also exactly where the descending 20-day exponential moving average is. A natural place for a rally to go and die.

However, nothing wrong with that move.The bulls will take it and there's a real shot we'll get that move or reasonably close to it. If we get there that is a get-out area, as the combination of the top of the triangle plus the 20-day would be lethal to the bulls, at least short term. We now have to turn our attention to see if the S&P 500 can hold 980 on Tuesday because if it can it is more likely the bulls will gain a little more control of things short term, as the bears, unable to take back resistance turned support, will likely take the foot off their gas pedal. If 980 does hold we can reasonably expect a move to that 20-day triangle top combination. For the Nasdaq, 1900 is very tough price resistance, but the bulls would fall all over themselves to get the market that high. If the S&P 500 can reach 1030, the Nasdaq would have a shot, but it would take a good report from Apple (AAPL) on their earnings report tomorrow to get that to be any type of real possibility.

The best area of the market for now seems to be in the commodity world. Those stocks, no matter what area you look at, are very compressed down on their oscillators, and most of them are putting in positive divergences on their daily charts after an absolute slaughter over the past many months. Many of the big leaders are down 80% from top to bottom, and some decent recovery may be in store here. Weak days can be accumulated for sure until those divergences disappear and that doesn't seem to be the case any time soon. Nothing straight up, but they do look best along with many of the financial stocks, although I have to bite my tongue to say that. Tech doesn't look as good, but if Apple can be good tomorrow, that'll help for sure. Texas Instruments (TXN) stunk tonight and the semis absolutely stink and that area is not the best place to focus your dollars on. Do what feels right to you of course but that area is just not performing and TXN is yet another example of how bad things are in that part of the market world.

Sign up for a free 30-day trial to Jack Steiman's SwingTradeOnline. .

According to Mike Paulenoff, author of MPTrader.com :

Sept. 10 year T-note futures are up about 3/4 point this AM, while the yield on the cash 10 year Treasury has declined to 3.80% from 3.88% late yesterday, suggesting strongly that long rates are starting to react to economic weakness- especially after Bernanke endorsed a new stimulus package in his congressional testimony yesterday. If Bernanke is volunteering his support, I suspect that the markets think the economy might be weaker than any of us thinks.

Sign up for a free 15-day trial to Mike's ETF Trading Diary 18 Winning Trades out of 19 in September (+36.7% Total Return).

Harry Boxer, author of TheTechTrader.com , eyes rebound opportunities in this down market, and selected Alpha Natural Resources (ANR) as his Chart of the Day yesterday:

ANR had a real solid session on Monday, although it had some wild swings. The stock gapped up, ran hard in the morning, backed off and retsted the intraday moing aveage, and then shot up to just under 43, from a close Friday at around 38. A competlet retest and pullback and fill of the gap occurred, but it held support, bounced up, and then went into a coil pattern. The stock finally worked its way out and up and then spiked up with about a half hour to go, pulled back and then closed at the high for the day going away at 43.43, up 5.35 on 4.67 million.

The significance of that is that ANR appears to have broken out of its declining channel and closed right at, or just underneath, the rally high from last week and the declining 21 DMA. Any further progress could take this stock dramatically higher into the low 50s in a very short period of time, and if the market cooperates we could see the stock get up to near the 60 area over the next week or so. So this is a stock to keep an eye on. Since it has come down from 120 to under 30, or 90 points, we could see at least a .382 Fib retracement, which gives us about a 36-point, or $54-56, target. That's what I'd be looking for on a very short-term basis for short-term to swing traders.

See Harry's video chart analysis on ANR.

Sign up for a free 15-day trial to Harry's Real-time Technical Trading Diary. 80% Winning Trades! +2.9% Average Returns per Day Trade! Includes Harry's Weekly List of Top "Boxer Shorts"!


For more of our Wizards, sign up for a Free Trial to their subscription services on our Sign-Up page.

http://www.advicetrade.com/Wizards

© 2002-2008 MPTrader.com, Weekly Wizards an AdviceTrade publication.  All rights reserved. Any publication, distribution, retransmission or reproduction of information or data contained on this Web site without written consent from MPTrader is prohibited. See our disclaimer.

Weekly Wizards Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in