Copper – A Period Of Recovery And Potential Outperformance

By | August 19, 2018

The movement in the price of spot copper and the movement in the Dow Jones Industrial Average (DJIA) are very highly correlated. That means they generally move higher or lower in tandem. There are, however, periods of divergence and those periods can provide a trading edge. When a stock is moving higher but the MacD… Read More »

Gaming The NVIDIA Earnings Trade – Based On This Technical Correlation

By | August 16, 2018

There is a close correlation between the movement in the stock price of Electronic Arts (EA) and the price action in NVIDIA (NVDA) shares. This is not surprising, NVIDIA chips are used in gaming processors and by cloud-based gaming streaming services, and Electronic Arts is a major supplier of content and services for game consoles… Read More »

What Is Going On With This Market?

By | August 15, 2018

In yesterday’s session the major market indices closed near their lows and the day before they closed near their highs. Today they dropped hard at the open retesting minor support levels. By mid-session they were on the mend and ultimately closed well off their lows forming hammer-like candles on the charts. Tomorrow they will likely… Read More »

Burlington Stores Leading Another Retail Sector Breakout

By | August 9, 2018

Shares of Burlington Stores (BURL) are breaking out of a cup and handle continuation pattern and making new highs. Cup and handle rim line resistance is located at $158 level on the Burlington chart, and the stock is currently trading in the $160 area. The relative strength index reading reflects renewed positive price momentum and… Read More »

Caution! – Bearish Patterns On The Major Market Index Charts

By | July 28, 2018

On Thursday it looked like a triple top had formed on the Russell 2000 chart. Three consecutive bearish engulfing candles formed at channel resistance and it appeared the consolidation pattern was going to resolve to the downside. The analysis was posted here. As it turned out the small-caps were hit hard on Friday and the… Read More »

Three Bearish Engulfing Candles On The Russell 2000 Chart Suggest A Possible Triple Top

By | July 25, 2018

A pattern of bearish engulfing candles has formed on the iShares Russell 2000 ETF (IWM) daily chart, which could be an indication that the small-cap sector has made a intermediate term top. In June a bearish engulfing candle formed just below the $170 level. The pattern was repeated again in July and once more just… Read More »