Tag: DOW (INDEX:DJI)

Choppy Action and a Dead Cat Bounce

Posted on by The INO.com Team

This week has been one for the history books and it's not over with yet, we still have today's action to contemplate. So what has the market really accomplished this week? Well, it has frustrated both the bulls and the bears, that's for sure. It's hard to believe that after all of this chop that the Dow is only up 1.18% for the week if it closes where it is currently trading (and less than that on the S&P 500).

What does all of this choppy action mean? Has the market topped out? Is this a "dead cat bounce"?

Let's just let all the dust settle and see what is going on in the major indices for the week and the month.

Last week the major indices closed at: Continue reading "Choppy Action and a Dead Cat Bounce" →

One Amazing Stock and the "Death Cross"

Posted on by The INO.com Team

Last week I talked about the "death cross". This ominous sounding indicator is watched by many long-term investors. A "death cross" occurs when the 50-day moving average moves below the 200-day moving average. It sounds a little morbid, but this indicator has been useful in the past.

Let me give you some examples of the "death cross" during the past 8 years. Since 2007, there have been four times when the "death cross" has come into play. On January 14, 2008, a "death cross" was signaled and that was the start of the big downturn that lasted until July 8, 2009, when the 50-day moving average moved back over the 200-day moving average.

On July 7, 2010, the 50-day moving average once again dipped below the 200-day moving average signaling a bear trend. That signal came to an end on October 4, 2010, and proved to be more of a consolidation than a bear market.

We had to wait until August 25, 2011 for the next "death cross". This again proved to be short lived, only about four months and in retrospect, looked more like a consolidation that a bear market. That signal ended on January 4, 2012.

So what are we to make of this last "death cross", the one that occurred yesterday? Continue reading "One Amazing Stock and the "Death Cross"" →

Optimism For Greece - Can It Last?

Posted on by The INO.com Team

It started in the Far East and was immediately picked up by the European stock markets with many of them soaring over 3% for the day. All of which was overshadowed by the Athens Stock Index which was up over 8%. Can anyone say happy days are here again?

It would appear to this observer that the world wants a positive outcome from this self-induced Greek tragedy.

Last week, on Thursday to be exact, you may remember buy signals were triggered on the S&P 500 and the NASDAQ based on the Trade Triangle technology. That signal did not apply to the Dow which remains a laggard. The Dow could join the S&P 500 and the NASDAQ should it trade above 18,169 this week. As of this writing, the DOW is about 30 to 40 points away from giving a buy signal based on the Trade Triangle technology. Continue reading "Optimism For Greece - Can It Last?" →

Is This The End Of The Bull Market?

Posted on by The INO.com Team

Today I'm going to be analyzing charts of the DOW, NASDAQ and the S&P500 and the potential divergence I see in those markets.

It's too early to tell if these markets are going to reverse down and calling tops is never easy, nor am I trying to do that in this particular posting. What I am doing, however, is bringing to your attention a potential problem and a potential opportunity.

What I mean by that somewhat contradictory statement is that these markets could go either way. However, the odds would still favor trading with the trend and the major trend in both the DOW, NASDAQ and the S&P500 continues to be to the upside.

INDEX:DJI

In the three charts I have laid out today you can see the #1 and #2 quite clearly. #1 indicates that prices are going higher and #2 indicates that momentum is not following prices. This could be an early warning sign that things aren't quite up to par and as strong as I would like to see. Continue reading "Is This The End Of The Bull Market?" →

Don't Let Choppy Markets Get The Best Of You!

Posted on by The INO.com Team

Sometimes markets can be very frustrating when they lack direction and appear to be indecisive as to which direction they want to move. When that happens, I always take a look at the major trend, as that gives you a strong clue as to what the future is going to bring.

Every market cycle has its ups and downs and markets tend to go higher and lower than most people anticipate. It is just the nature of the beast.

In today's video, I'm going to look at the big picture in the Dow, NASDAQ and the S&P 500. Each of these indexes are microcosms of what traders are thinking. Continue reading "Don't Let Choppy Markets Get The Best Of You!" →