Monthly Archives: February 2012

Outside Day Upside Breakout in QQQ

After a rare formation of two consecutive outside days, an upside breakout followed in QQQ. The resulting outside day upside breakout pattern has been historically a short signal for profit targets in the 3% range but with a low winning bias. Share

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Rare Patterns of Two Consecutive Outside Days in SPY and QQQ

These patterns are indeed extremely rare. They have formed after some other recent rare patterns. Maybe it is because this is a rare time period. Share

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Probability of Rising Commodity Prices Causing a Stock Market Crash is Very Low

Some analysts have argued that the recent rise in commodity prices and especially the rally in crude oil prices may cause a stock market crash. However, the current situation does not compare to the conditions present in 2007 and 2008. Share

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SPY Correction is Possible

SPY is in overbought territory and facing a resistance level. In addition, my proprietary indicator, the MEI, shows loss of momentum and diverges to the downside. My estimate is for a 2% correction in the next few days so that the market … Continue reading

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ETF Trends – Week of February 27, 2012

Index and precious metals ETFs have reached important resistance levels. Out of the 8 major ETFs tracked, 4 are overbought and two are approaching overbought territory. This spells volatility ahead. The whipsaws that will follow will facilitate another transfer of wealth from naive … Continue reading

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Stock Scanning Using the p-Indicator

The p-Indicator allows a quantitative approach to scanning stocks for short-term high probability setups. Here I provide an example of how this particular indicator can be used to scan the DOW-30 stocks on a daily basis.  Share

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GLD and SLV at Crucial Resistance Levels

GLD is about $3 away from its November 2011 high of $175.46 and SLV closed just above its 200-day simple moving average and its down-trendline from the high of April of last year. Share

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Shanghai Stock Exchange Composite Index Gaining Momentum

After forming a rare double inside day pattern two weeks ago, the Shanghai Stock Exchange Composite Index ended last week up 3.5%.  The short-term target is the 200-day simple moving average currently at 2519. Share

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