Tackle Today: Battle at the 50-Day Moving Average
August 30, 2022
«The Fate of $4,000 will be Telling.»
August 30, 2022
«The Fate of $4,000 will be Telling.»
April 12, 2022
S&P 500 futures (/ES) breached the pivotal 50-day moving average. Bulls went to bed crying to their mommies last night.
September 8, 2021
metimes down days shake your confidence. When stocks have been in an uptrend and then get dropped kicked on a random day, it leaves you wondering whether it’s the beginning of the end. Fear kicks in, and you wonder if you should bail on your well-placed positions.
September 7, 2021
By Mark Justice
Traders unwilling or unable to buy crypto directly have turned to a handful of stocks that seem to be moving somewhat with bitcoin. As such, they’re often used as proxies to get exposure. I’m thinking of MARA, RIOT, and GBTC, to name a few.
September 1, 2021
Not a day goes by without some market strategist or talking head opining on the risk of a downturn for stocks. “Something wicked this way comes,” they cry. I started trading in 2006 and have heard such doomsaying since day one. The potential causes are wide and varied but inevitably get recycled. Here’s one such example from Bloomberg last month, “Minerd Says U.S. Stocks Could Plunge 15% in ‘Very Rough’ Autumn.”
August 31, 2021
By Mark Justice
Breakout occurs when prices breach support or resistance. With the market in such a powerful uptrend, bullish breakouts, or those that take out resistance, are the most prevalent. Their appeal comes down to two factors: the favorable reward to risk ratio and the higher probability.
August 25, 2021
Chinese stocks haven’t been left out of this week’s market rally. The Chinese Large-Cap ETF (FXI) is up 5.5% over the past two trading sessions. The daily chart also has a potential double bottom pattern trying to form with support at $38, so bulls have a shot here.
August 24, 2021
Last week when small-caps got punched in the face for four days in a row? Well, over the past two trading sessions, the Russell 2000 Index regained nearly all that was lost. It’s as if the selloff never happened.
August 18, 2021
The S&P 500’s 0.66% drop yesterday doesn’t really reveal just how much damage we saw. For a better view of the carnage, consider the Russell 2000, which fell 1.22%. Thank goodness we saw a bounce before the closing bell. It could have been much worse.
August 17, 2021
The S&P 500 is up nearly 20% on the year and quickly closing in on $4,500. With prices having risen so far, you might be wondering how anyone could make the case that stocks have actually gotten cheaper this year.
August 11, 2021
One of my favorite tricks for quickly spotting what’s hot and what’s not each day is to sort my watchlist by percentage change (%change). You must look at the change by percentage and not dollar amount because if you do the latter, it will consistently spotlight expensive stocks. Substantial moves made by sub-$100 equities will get lost in the shuffle.
August 10, 2021
Intermarket analysis studies the relationship between currencies, commodities, bonds, and stocks. Though, I suppose we need to add crypto to the list now. Certain assets trend together; others move in opposite directions. One of the correlations in focus recently is between interest rates and bank stocks. And by “interest rates,” I’m referring specifically to the ten-year yield, which tracks the interest rate on intermediate-term Treasury bonds.
August 4, 2021
Tuesday’s intraday market reversal was impressive. The S&P 500 was testing the 20-day moving average midmorning and threatened to break short-term support. And then, someone flipped a switch, and stocks turned higher. The rally continued throughout the day, with the S&P 500 closing at the high. It’s now within spitting distance of a new record.
July 28, 2021
Two days ago, we featured bitcoin (/BTC) as our chart of the day. However, it deserves some further commentary because there are fascinating takeaways from its sudden reversal.
July 21, 2021
Volatility tends to cluster. Big down days (like Monday) don’t lead to peace and calm. Instead, the violence of the plunge is usually echoed by the speed of the recovery. Tuesday saw stocks come roaring back, especially in the beaten-down Russell 2000. The small-cap-laden index surged as much as 3% intraday.
July 14, 2021
Remember this article next time some nervous nelly points out a spooky divergence. They don’t all resolve themselves with asset prices falling.
April 13, 2020
Come learn about why the 50-day moving average generates powerful trend reversal signals.
August 13, 2019
Momentum is typically expressed as the distance between pivots. In an uptrend, we look at the pivot highs. In a downtrend, we use the pivot lows. If the distance is expanding, then momentum is increasing. If it’s contracting, then momentum is decreasing.
August 6, 2019
Sometimes price action is messy. Candlesticks go cuckoo and volatility jacks up your charts. I’m not a fan of indicators. There are thousands, and most are redundant rehashes of what we already know.
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