Category Archives: Technical Analysis

Solar and Biotechnology Stocks Rally as Rational Exuberance Dominates

Solar stocks are rallying due to positive earnings and deals. Biotechnology stocks are also rallying due to mega-deals and government funded research. In my opinion, solar technology prospects are limited and the biotechnology rally with end with a crash. Share

Posted in ETF Analysis, Technical Analysis | Tagged , , | Comments Off

Another Divergence in Small Caps Could Signal a Correction in Stocks

The Russell 2000 index is struggling to stay above major support at 1220. A start of another divergence between small and large caps would be a highly negative signal for the market. A move above 1250 in this small cap … Continue reading

Posted in Technical Analysis | Tagged , | Comments Off

Gold at a Critical Juncture

Unable to rebound, gold is now at a critical juncture, trading this morning just above $1200. Price action is weak with the 14-day Relative Strength Indicator (RSI) at 40.38. Major support is near $1180. Share

Posted in Technical Analysis | Tagged | Comments Off

S&P 500: Short-term Correction Is Near

The S&P 500 index rose to all-time highs but performance remains weak. It is possible that this was the outcome of a positive drift in random price action and a short-term reversion to the  mean is near. Share

Posted in Technical Analysis | Tagged | Comments Off

Relative Strength Indicators Point to a Continuation of the Stock Market Rally

Last November there was a significant divergence in the three relative strength indicators I follow just before the market made a top in early December. This time all indicators are in sync. Overbought condition will develop but any correction may … Continue reading

Posted in Technical Analysis | Tagged , , | Comments Off

The Bactrian Camel Pattern: A Significant Discovery

This is a significant pattern that was missed by the “pioneers” of technical analysis and shows how markets move in the deserts of financial and geopolitical uncertainty. Share

Posted in Technical Analysis | Tagged | Comments Off

Traders in Precious Metals ETFs Whipsawed by Algos

Last Friday SLV closed up 2.24% after a volatile session and yesterday the same ETF closed down 4.3%. These erratic moves are caused by algos so the retail traders get whipsawed. One way for traders to deal with this reality … Continue reading

Posted in ETF Analysis, Quantitative trading, Technical Analysis | Tagged | Comments Off