Monthly Archives: January 2012

Runaway Gap in AAPL?

Posted on January 31, 2012 by Michael Harris

The recent gap in the AAPL daily chart after the financial results for its fiscal 2012 first quarter may be a signal of trend continuation to significantly higher levels. Or it may be a signal of trend exhaustion. Can we … Continue reading →

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When Technical Analysis is Used to Justify Opinions

Posted on January 31, 2012 by Michael Harris

My post yesterday about the frequent use of  argumentum ad verecundiam by technical analysts in an attempt to assign credibility to their work is followed today by another that provides a specific recent example of how different analysts saw on a chart that which … Continue reading →

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Argumentum Ad Verecundiam and Market Analysts

Posted on January 30, 2012 by Michael Harris

Some technical analysts often use argumentum ad verecundiam, or what is commonly referred to as an argument from authority, in an attempt to assign credibility to their work. The reader should be aware that in most cases, an argument from authority is a fallacious argument … Continue reading →

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SLV Near Triple Resistance

Posted on January 29, 2012 by Michael Harris

The recent rally in precious metals has lifted SLV as much as 28% from its December 2011 low of $25.65 to close near $33 on Friday, January 27, 2012. This closing price is $1.50 below a triple resistance area.

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ETF Trends – Week of January 30, 2012

Posted on January 29, 2012 by Michael Harris

In accordance with a new dynamic that has emerged in the markets, stock index, metal, currency and commodity ETFs continued to rally but there is a notable change from similar past situations. This time bonds also rallied. Was this just a short-term reaction due to … Continue reading →

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Bond Yields Are Dropping in the Face of Increasing Global Uncertainty

Posted on January 27, 2012 by Michael Harris

Bond Yields dropped after the FED announcement of their interest rate policy. The 10-Year Note yield fell below 2% after breaking above the upper tendline  of the down-channel it has formed since last November. It appears that inflation expectations play a secondary role … Continue reading →

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Diamonds are Forever Even When Technical Analysis Fails

Posted on January 26, 2012 by Michael Harris

I sometimes wonder why and when some technical analysts decided that the diamond top formation is a reversal signal. A diamond is a good thing, it is forever. Well, this was another major TA failure I have warned about in advance. … Continue reading →

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The p-indicator Continues to Signal a Short-term Market Top

Posted on January 26, 2012 by Michael Harris

I do not recall I have seen this pattern more than twice before in the 10 years I am using the p-Indicator. The pattern is a rising market but the p-indicator signals stay mixed. Maybe it is a period that this … Continue reading →

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Gold Prices Found Support and Are Rallying Towards $1700

Posted on January 25, 2012 by Michael Harris

Gold prices are rallying today after testing 200-day simple moving average support near $1644 an ounce and have also managed to break above the longer-term down-trendline from the September 2011 highs.

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Short-term Price Pattern Analysis for SPY

Posted on January 25, 2012 by Michael Harris

Price Action Lab was used in scan mode to identify high probability setups in SPY as of the close of Tuesday, January 24, 2012 for 2% profit target and stop-loss. Then, the same program mode was used to identify all … Continue reading →

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