Market Breadth: Nasdaq 100
Since I looked at the S&P 500 earlier this morning, I thought it would be helpful to look at the health of the Nasdaq 100 too. Like the SPX, the NDX is looking a little weak based upon the market monitor reading of 2.6. More importantly, there is a major divergence between the price and breadth. Remember that the market monitor looks at the number of stocks within 25% of their 65 day highs and divides it by the number of stocks within 25% of their 65 day lows. The current ratio of 2.6 is much lower than the reading of 15 back in November even though the current price is above...
read moreFinding Multiple Complex Patterns
With such light volume, I seem to be having a hard time finding an edge to trade with. As a result, I’m on the lookout for charts that have similar signals using multiple indicators. Most of the indicators that I use are rare and do not give very many buy or sell signals, so it is unusual for them to all line up within a few days. When they do, however, this is usually a good signal to trade off of. Here is a butterfly pattern that was suggested by David White of TFNN. Donaldson Co. Inc (DCI), hit the 1.272 expansion point today, which should mark a bearish turn. Interestingly,...
read moreSequential Process
Good technical analysis is just the study of human nature. Looking for patterns in charts is really just looking for the way a human crowd moves under varying degrees of fear and greed. Almost every technique I use has some underlying psychological framework from which I can try to anticipate what could happen next. I say almost because as you might have guessed by now, I like to use DeMark’s Sequential and Combo indicators, which do not seem to have any kind of obvious connection with human nature. It is this seemly arbitrary nature of the DeMark indicators that can discourage some...
read moreCombo Buy Signals for Oil
I know I’ve posted the daily chart in the past, but Oil has just finished a weekly and daily combo buy signal. I’m not doing anything with it but I thought I would post it...
read moreUS Dollar Index gets even more bearish
Here are a couple more charts that show the bearish setup for the US Dollar. Remember the ABC up pattern? This pattern is confirmed by both the TD Combo and TD Sequential sell signals. Remember that the market likes a weak dollar. ShareEmailPrintDigg
read moreCombo A/D and Combo MACD: New indicators
Using the zero-lag triple exponential moving average (ZL TEMA) cross was the subject of a recent article in The Technical Analysis of Stocks and Commodities magazine. (Find the code here) The stated goal in the article was to find a way to get rid of whipsaws in a moving average cross trading system while at the same time not sacrificing response time. I shared this goal when I was experimenting with using the moving averages of a newly constructed advance/decline line and I thought it might be useful to compare the two methods. The new advance/decline line (A/D line) was constructed by...
read more