May 22, 2013
Chart Room with Mark Arbeter: Options Market Warns of Potential Pullback
S&P Capital IQ Chief Technical Strategist Mark Arbeter notes that there has been a lot of bullish activity in the options market, and this concerns S&P Capital IQ from an intermediate term standpoint. For further technical comments from Mark Arbeter, please visit: www.marketscope.com.
May 21, 2013
How To Exit Winning Trades Part 1
Given the recent record-breaking new highs in our markets, it’s time to consider how to lock in profits for open winning swing and position trades, before the market drops. In this series of articles, we’ll look at how to use easy-to-follow trade management tactics designed to help traders get out of trades at the earliest signs of weakness. The goal is to scale out of trades in two exits, like industry professionals do, so that profits are realized at two sequential price regions. Scaling Out Of Winning Swingtrades: Your 2-Step Exit Plan As markets continue to rise and share prices climb, it’s a smart idea to lock in gains before the market takes back a large part of unrealized open profits. New traders often miss out on breakout rallies, only to buy near a top, entering too late. Or they (more)…
May 10, 2013
Where Could the Market Top?
In this week’s interview with Toni Turner of TrendStar Trading Group, we discuss the market’s ability to push higher as catalysts are running out. Also, if, in fact, a top will take place, where is it most likely to occur? EQ: There’s really no other way to describe the current market besides the fact that it just wants to go up. Thursday saw the market closed down, but just barely. What are your thoughts on trading the current market right now? Turner: I just don’t see how the current uptrend can continue without a catalyst. We need a really good piece of news. Earnings season is coming to an end, so we’re not going to have the big market movers helping to be that catalyst and push the market higher. As far as economic reports go, jobless claims came out (more)…
May 9, 2013
This Is It
This is one of the more important issues I’ve written and I’m glad I waited to write out my thoughts now versus right after the significant drop in gold two weeks ago. I will dovetail into why I believe that is important emotionally and why it ties into our viewpoint over the short and long term. I titled this issue “This Is It” because the decisions made in this coming, call it 6-18 months or so, will separate the men from the boys in this great gold bull market, and our resolve will be tested. I believe this scary market environment and correction is setting up the bubble/mania/third phase of the precious metals secular bull market where prices go parabolic in metals and mining stocks. However, the downside action in gold is likely not over yet and we may be (more)…
May 8, 2013
Chart Room with Mark Arbeter: Looking for an Intermediate-Term Top to Develop in the S&P 500
S&P Capital IQ Chief Technical Strategist Mark Arbeter sees potential for further near-term gains, but for an intermediate-term top to develop in the coming months. For further technical comments from Mark Arbeter, please visit: www.marketscope.com.
May 6, 2013
Bull Market Shows No Signs of Letting Up
I’d like to see a show of hands for the next 3 questions: How many of you think the market is going to move a lot higher before it moves a lot lower?… Ok… let me count… keep your hands up until I get the count… got it. You can put your hands down. How many of you think the market is going to move a lot lower before it moves a lot higher?…. Oh… a few more hands on this one… Joe… did you vote twice already?… Ok, put your hands down. Ok… last question… How many of you don’t have a clue where the market is headed? Wow… That’s an overwhelming majority I see out there… so many, I’m not going to even try to count. You can put your hands down; even those of you who voted (more)…
May 2, 2013
The Best Six Months for Stocks is Over, So Now What?
For the second time in two months, the S&P 500 managed to close out on the last day at a new record high. While even the most bullish of bulls are probably wondering when the eventual digestion of these gains will take place, the momentum right now is still suggesting there is room to move higher. In this week’s interview with Toni Turner of TrendStar Trading Group, we discuss whether the “Sell in May and Go Away” adage applies to the current market, and whether stocks will retest the 1600 level on the S&P 500. EQ: The S&P 500 closed at a record high on the last day of April, which is the second consecutive month it’s done that. May, however, does traditionally kick off the worst performing six months for stocks. Does this concern you? Turner: If we look (more)…
Chart Room with Mark Arbeter: See Near-term Pullback in Gold
S&P Capital IQ Chief Technical Strategist Mark Arbeter notes the long-term picture for gold is still uncertain. For further technical comments from Mark Arbeter, please visit: http://advisor.marketscope.com/
April 29, 2013
Analysts Going Bullish on Abercrombie? It’s Going to Have to Take Out $50 for Starters
Shares of Abercrombie & Fitch Co. (ANF) are getting some love in 2013 after making a strong move in November of 2012 on the back of a fiscal first quarter earnings report that crushed analyst expectations. The earnings report sent the stock up more than 30 percent in one day (incidentally its biggest single-day percentage gain in its history) to begin a multi-month climb from around $30 to peak at a 52-week high of $52.21 in February. Ever since cooling from those highs, the stock has been stuck in a channel that swing-traders love, making consistent bounces from around $45 up to $50 and back down again, yielding solid percentage gains to both call and put sides. Take a look at the chart: Is it ready to take out the topside of the short-term channel and challenge the 52-week high. (more)…
Momentum Stock Entry Signals Part 3
In this third and final article in the series, we’ll take a closer look at how to use specific price-action momentum signals to identify emerging breakouts. In our earlier articles we looked at “wide range” candles, MA crossovers and the Wilder’s Average Directional Index (ADX) to quickly filter through charts. As we examine strong momentum entry signals, one key concept to keep in mind is that we’re now looking for charts that are showing increasing momentum and price action, so that we’re able to pull the trigger on strong trades that move after we enter. Momentum Swingtrade Entries: “3-Day Expanding Range” Pattern Many aspiring breakout traders make the common mistake of avoiding entries following strong moves, in fear that the price will exhaust and sell down after they enter. Avoiding false breakouts while still having the confidence to enter (more)…
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