22
Oct

FT: Adapting to dark pool rules

European regulators are to finalise their rules for regulating dark pools soon. Rob Boardman, European chief executive of broker ITG, explains to Philip Stafford how the market will adapt to the likely stipulations, in particular caps on trading.

FT Trading Room

21
Oct

Bouncing Range Market Update and Scan for Oct 20

With a narrow bounce continuing to drive the market into a known resistance cluster, let’s view the key levels, highlight the trending stock candidates, and update our S&P 500 chart as we start the week of October 20th.

Here’s our S&P 500 update and trending stock scan for the day:

Again we watch the 1,900 confluence which represents a “Round Number” level with the 38.2% Fibonacci Retracement as drawn, along with the important 200 day Simple Moving Average near 1,905.

The market is simply “Breakout Bullish” to reverse the intraday downtrend via V-Spike Intervention Reversal or else bearish into resistance should price instead move down against the 1,900 cluster.

Sector Breadth is Bullish at the moment with clear caution signs:

We continue the theme of “almost all sectors are performing similarly” with most S&P 500 sectors returning Breadth readings near 80%.

However, the strongest cluster appears to be the Staples and Utilities – Defensive names – and the weakest is the Industrial sector.

Keep your eye on the relative performance (strength at the moment) of the Defensive/Risk-Off names.

We finally have uptrending bullish intraday candidates today:

Cigna (CI), Trip Advisor (TRIP), Intuitive Surgical (ISRG), and Celgene (CELG).

Top bearish downtrending candidates include the following stocks:

IBM, Cognizant (CTSH), Hewlett-Packard (HPQ), and John Deere & Co (DE).

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Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).


Afraid to Trade.com Blog

21
Oct

Up Up and Away Market Update and Stock Scan for Oct 21

Just like the prior times when buyers intervened to force a short-squeeze, we’re seeing the same breakout into shot-squeeze outcome this time above 1,900.

Here’s our S&P 500 update and trending stock scan for the day:

After the recent V-Spike Intervention at the lows, we’ve seen the market creep like a serpent ever higher into the first resistance cluster at 1,900.

This morning’s gap triggered yet another Short-Squeeze Breakout outcome (see yesterday’s planning) and we continue to trade long with the buyers (and perversely, long with the bears/short-sellers who continue to drive price higher collectively with their buy-to-cover stop-losses).

With the market above 1,925, we aim for 1,945’s confluence target.

Sector Breadth is Bullish at the moment again:

Today’s price action – as confirmed with our Sector Breadth stock grid – shows clear bullish indications.

Our strongest sectors are all the Offensive/Bullish names while the weakest sectors of the day – excluding Health Care – are the Defensive/Risk-Off names (Staples and Utilities).

Uptrending bullish intraday candidates today include the following:

Waters Corp (WAT), FMC, Robert Half (RHI), and Equifax Inc (EFX).

Top bearish downtrending candidates include the following stocks:

Coca-Cola (KO), Chipotle (CMG), Lockheed Martin (LMT), and IBM.

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Follow along with members of the Daily Commentary and Idealized Trades summaries for real-time updates and additional trade planning.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).


Afraid to Trade.com Blog

20
Oct

Surging Toward the 200 day SMA Target

As was generally expected, the market retraced higher after several down-days in a row took price to a key monthly support level (1,825).

Let’s look at the current S&P 500 and Dow Jones charts and highlight the surge back to the underside of the broken 200 day SMA:

On the breakdown under the confluence of the 200 day SMA and the August price low with the 1,900 “Round Number,” the S&P 500 collapsed into a vacuum of buying until bulls supported the market aggressively off the 1,825 target.

Now, we see a logical bullish price pathway surging higher toward the underside of the 200 day SMA and this same confluence.

It should be our focus for planning the next swing in the market into next week.

Quite simply, a trigger-break above this level that continues above 1,910 suggests the index will continue a rally toward the 1,945 level (green highlight).

However, this is an inflection point to be monitored to determine if sellers once again strike the market into a critical resistance level.

We’ll treat it similarly on the upside (testing resistance) as we did on the downside (testing support).

The picture is similar in the Dow Jones Industrial Average:

We have a wider “Neutral Zone” for the Dow and it extends here at the 16,400 prior spike low from August into the 16,600 level which is roughly the 200 day SMA.

When price breaks through a key support or resistance level, it often comes back to test (or touch) the level to determine the supply/demand relationship.

Will sellers once again liquidate into resistance as they did on the break… or will buyers overcome the selling pressure to trigger a breakout and thus likely “short squeeze” above resistance?

That’s the question we should be asking without bias as price returns to a key decision point on the chart.

Join me live for a special presentation with 8 speakers in an all-day educational event Saturday!

Follow along with members of the Daily Commentary and Idealized Trades summaries for real-time updates and additional trade planning.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).


Afraid to Trade.com Blog

18
Oct

Rally Report and Market Update for October 17

Price today continued its recovery rally into resistance (see this morning’s update for targets) and now we pause mid-day to check key key levels and highlight the top trending stocks of the session.

Here’s our S&P 500 update and trending stock scan for the day:

Our focal point turns to the underside of 1,900 which is where the market peaked and reversed today (1,898).

We’ll be cautious under this area as price continues to pull back.

Note the lengthy negative TICK (and momentum) Divergences into the underside of 1,900.  This further suggested a sell-off was likely.

Nevertheless, Sector Breadth is Bullish at the moment:

Like yesterday, we see across-the-board bullishness.  Our strongest sectors once again are Materials and Industrials while Utilities turns in the worst performance of the day.

All other sectors continue to show breadth performance near 80% positive.

We finally have uptrending bullish intraday candidates today:

Mead Johnson (MJN), Textron (TXT), Regeneron (REGN), and Alcoa (AA).

Top bearish downtrending candidates include the following stocks:

Urban Outfitters (URBN), AbbVie (ABBV), Capital One (COF), and Health Care REIT (HCN).

Join me live for a special presentation with 8 speakers in an all-day educational event Saturday!

Follow along with members of the Daily Commentary and Idealized Trades summaries for real-time updates and additional trade planning.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).


Afraid to Trade.com Blog

16
Oct

Join Me Saturday for a Full Day of Trader Education

Oct 16, 2014: 4:22 PM CST

Join us live for a day of trading education from Fibonacci to Price Patterns, Trend Days to Spotting Market Reversals.

I’ll be part of 8 trader educators presenting a full day of content as part of the

Smart Investing Workshop:  Financial Leadership from Professionals live event.

I’ll be the final speaker to round out the day, taking the microphone at 3:15pm EST (12:15 PST):

I’ll teach you what a Trend Day is and how to position yourself best for these explosive intraday moves.

The information will apply to swing and intraday traders.

These sessions are free and you can attend any or all sessions at your convenience.

Click here to register for free and start planning your schedule.

Thanks to the team at Investor Inspiration and I can’t wait to see you there live!

Corey


Afraid to Trade.com Blog

15
Oct

FT: Trading rules needed for high-tech world

High-frequency trading has captured US regulators’ attention. Jim McCaughan, Principal Global Investors chief, tells Philip Stafford that this focus has reined in predatory excesses but regulation still needs to reflect the modern high-tech world.

FT Trading Room

15
Oct

Support Bounce Market Update and Stock Scan for Oct 14

The question today remains “Will we see an actual bounce or will we see yet another repeat of the end-of-day collapse outcome?

We’ll start with our chart of the S&P 500 for key clues:

The pattern has shown us intraday bounces or rallies up off the falling trendline, only to be met with selling pressure into the close to continue the intraday downtrend.

That’s the probabilities we’ll be balancing in today’s session as we see a rally up into the 1,900 target but a retracement down against the trendline and 1,900 confluence (our focal point).

We’re ‘bullish above this level’ and otherwise bearish beneath it.

Sector Breadth reveals a Strong Bullish perspective:

Finally, Sector Strength clearly appears in the Offensive or Bullish sectors like Financial sand Indstrials and we’re seeing Sector Weakness in the “Defensive” names like Staples and Health Care.

Generally, this is a sign of bullish money flow into the market as traders seek “Risk-On” positions.

Aggressive traders may look  to play bullish stocks into the close:

ProLogis Inc (PLD), Deere (DE), Consolidated Edison (ED), and Essex Properties (ESS).

Otherwise, bearish candidates include the following downtrending intraday stocks:

Tyco (TYC), Gilead Sciences (GILD), Autodesk (ADSK), and Zimmer Holdings (ZMH).

Afraid to Trade Premium Content and Membership

Follow along with members of the Daily Commentary and Idealized Trades summaries for real-time updates and additional trade planning.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).


Afraid to Trade.com Blog

13
Oct

New Lows into Support Market Update and Stock Scan Oct 13

At the halfway point today, we’re balancing the odds of another bullish reversal off support against the possibility of a continuation of the persistent selling pressure we’ve seen lately.

We’ll start with our chart of the S&P 500 for clues:

For additional commentary, see this morning’s update on “Planning Another Possible Intraday Reversal from Positive Divergences.”

The main idea is that we may see another repeat performance of what we saw October 8th when price touched a new low against “triple” positive market internal divergences.

There’s no guarantee price will once again rally higher but do focus on this potential bullish outcome.

The market would be an outright, aggressive short-sale under 1,900 again.

Sector Breadth reveals a Balanced Bullish perspective:

Sector Strength today concentrates in Financials and Utilities which sends a mixed (yet balanced) perspective.

We see no sector deviating from others except for Energy which is today’s weakest performer.

Aggressive traders may look for a reversal and to play bullish stocks into the close:

Southern Co (SO), Wisconsin Energy (WEC), Ameren Corp (AEE), and Apt Inv (AIV).

Otherwise, bearish candidates include the following downtrending intraday stocks:

AutoNation (AN), Noble Energy (NBL), QEP Resources (QEP) and Ebay.

Afraid to Trade Premium Content and Membership

Follow along with members of the Daily Commentary and Idealized Trades summaries for real-time updates and additional trade planning.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).


Afraid to Trade.com Blog

12
Oct

Bounce or Breakdown Market Update for Oct 10

Price continues to trade within an intraday downtrend as the sell-phase continues.

There’s a clear pathway developing, but no guarantee price will follow it.

Let’s chart the pathway and highlight the top trending stocks of the session:

Today we saw a (near) test of the 200 day SMA as I highlighted in this morning’s update.

Beyond that, we’re still in this game-planning mode of “Will the market repeat an intervention pattern or will this time be different” which frames our short-term strategies in this broader context.

Nevertheless, the intraday pathway is lower but price is testing the lower boundary of the falling range.

This would suggest – at least short-term – that buyers could rally the market again toward the falling upper trendline near 1,960.

However, a touch of additional selling could collapse the market straight down – even after all the selling we’ve already seen (reference July 2011).

Sector Breadth – like price – is showing additional bearish indications:

Our strongest sectors of the session include the defensive Staples, Health Care, and Utilities.  Strength in these sectors suggest strong bearish money flow.

Weakness has developed in Technology and Materials – and the other Offensive sector names.

Very aggressive traders may look for a reversal and to play bullish stocks into the close:

HCP, Venas (VTR), ICE Exchange, and CME Group.

We could our attention on bearish stocks (relative weakness):

Juniper (JNPR), Xilinx (XLNX), Symantec (SYMC), and Qualcomm (QCOM).

Afraid to Trade Premium Content and Membership

Follow along with members of the Daily Commentary and Idealized Trades summaries for real-time updates and additional trade planning.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).


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