Toothache

This is how I feel right now. Waiting for the antibiotics to take effect. Light posting until the swelling and throbbing subside.A guy with a toothache goes to see his dentist. After examining the tooth, the dentist tells the patient he is going to have to give him an injection for the pain. The patient says, "No way! I don't want an injection." The dentist replies, "OK, I'll give you gas." "No...

Technical Picture - Bears Own It

Yesterday we said that after 5 successive higher closes, we were due for some profit taking. Well that scenario held up until the last hour, when the S&P took out a key support level that had held all last week. The high volume sell-off (fourth largest one day point loss on record for the DOW), broke the neckline on the SPX inverse H&S pattern that was developing. If we can't hold 800 o...

3 Pivot Point, Base & Break - S&P Eminis

ES had several pivots into this level early last week. Each successful test strengthened this area as key support. Profit taking usually brings us back to key support. We tested support midday and broke out EOD. I've mapped out the remaining supports going into tomorrow. If all of these fail, last week's bounce will likely be another failed bear market bounce. The last remaining hope will be fo...

Technical Picture - Overbought

All of the major averages jumped 11% or more on the week, but according to IBD we haven't had a high volume follow-through day. That's likely due to the holiday shortened week, but this is a bear market correction. Expect some profit taking early next week. Futures are trading lower at this hour and Asian markets are seeing some profit taking.

Base & Break Trades

Wednesday' Trades - Both LRCX and SOHU set up low risk entries on test of previous day high. SOHU was a late entry off of NR7Friday's Trades were on the TSX (open for regular trading hours) - Two bank stocks set up Base & Break entries after 3 prior pivots into the base.

Technical Picture - Tech Stocks Lead Thanksgiving Rally

Weaker data in pre-market (Durable Orders -6.2% vs. consensus of -2.5%; Initial Claims 4 wk avg reaches highest level since 1983) resulted in a cautious open but the pressure was short lived as the markets held above Wednesday's low/afternoon range floor during the early dip implying limited pressure. Strength in technology/semi provided initial upside leadership and commodities, energy followe...

Happy Thanksgiving

Hope everyone was in on the Thanksgiving Rally!

Technical Picture - Consolidation Day

After two strong up days, the markets consolidated in the very upper range of the bounce. The early extension following the Paulson announcement of more FED action, left the S&P up about 17% off Friday's low and near resistance at the 50% retrace of the Nov slump and just below the 20 DMA, so it wasn't surprising to see some corrective action develop.Another Obama press conference, (totally...

Gap Fade - Morgan Stanley (Public, NYSE:MS)

Sort the WL on % change and focus on the outliers. MS was in one of the top spots for the second day in row. This time, it got a little ahead of itself and set up an easy fade. The first chart is the 1 minute and the second is the 3 minute. The 3 min. has the intraday pivot lines , as well as the the previous day high/lows mapped out. The picture is crystal clear with all those tweezer tops at ...

Technical Picture - Bear Market Bounce In Play

Yesterday, we said we needed some follow through, more than on Nov. 13-14, to shake out the bears and begin a real Bear market rally. Today's action was perfect as we opened strong and rallied, holding former resistance into the close. The VIX finally broke out of the bearish flag pattern and looks poised to move lower.The CBOE shows higher levels of open interest.Economic Calendar: Chain defla...