The Price Action Lab Report – Wednesday, November 26, 2014 [Premium]

The Price Action Lab Report includes a market recap and premium analysis and it is delivered daily before the market open. The premium analysis focuses on high probability setups in ETFs and S&P 500 stocks. Click here for more details.

Market Recap – November 25, 2014

U.S. stock indexes were mixed on Tuesday in thin pre-holiday trading. The S&P 500 fell 0.12%, NASDAQ rose 0.07%, the Dow lost 0.02% and the Russell 2000 shed 0.05%. Consumer confidence declined but GDP increased from initial estimates.

Bond prices rallied with the 10-Year Note yield falling 5 basis points to 2.26% due to high auction demand. Crude oil prices plunged due to OPEC’s reluctance to cut back on production with the spot price dropping -2.09%. The US dollar fell versus the Euro to $1.2474. Precious metals rose due to US dollar weakness. In the spot market gold gained 0.24% and silver rose 1.25%.

Comment: The US stock market will close on Thursday for the holiday and on Friday will open for a half-day session. High strength persists but at much lower returns than those realized right after the V-bottom in mid October. A protracted period of high strength with the S&P 500 above its 5-day moving average for 28 days has not occurred before in the last 64 years and it will end either with a consolidation or with a short-term correction towards the September highs. The drop in consumer confidence in November was not good news but it was balanced by an upward revision in third quarter GDP. There are also a number of geopolitical issues at play that the market has ignored for some time. Have a nice and safe holiday!

Short-term Technical and Quantitative Analysis

There are no open positions and no new setups. The table below shows eight pending setups in seven ETFs:

This is premium content. Please login or subscribe to continue reading...

Posted in Premium Content | Tagged | Comments Off

The Price Action Lab Report – Tuesday, November 25, 2014 [Premium]

The Price Action Lab Report includes a market recap and premium analysis and it is delivered daily before the market open. The premium analysis focuses on high probability setups in ETFs and S&P 500 stocks. Click here for more details.

Market Recap – November 24, 2014

Continue reading

Posted in Premium Content | Tagged | Comments Off

S&P 500 Has Just Broken Another Record

As several bloggers have already reported, the S&P 500 has stayed above its 5-day moving average for an unusully long period of time. Yesterday, the record of 26 days registered on March 3, 1986, was broken. Price action strength is at high levels but return expectations are diverging in the last three weeks.

Continue reading

Posted in Market Statistics, Technical Analysis | Tagged , | Comments Off

The Price Action Lab Report – Monday, November 24, 2014 [Premium]

The Price Action Lab Report includes a market recap and premium analysis and it is delivered daily before the market open. The premium analysis focuses on high probability setups in ETFs and S&P 500 stocks. Click here for more details.

Market Recap – November 21, 2014

Continue reading

Posted in Premium Content | Tagged | Comments Off

Quantitative Analysis of the Gap Up Pattern in SPY on November 21, 2014

SPY gapped up on Friday but then closed lower than the open. The profit taking that took place after the open has prompted some to wonder whether this pattern is a bearish signal. Quant analysis shows that this pattern showed up frequently after the bottom of 2009 with an upward bias but there are some issues to consider.

Continue reading

Posted in Quantitative trading | Tagged , , , | Comments Off