Stocks: It’s all about oil prices
Another week and another steep decline in oil prices last week finally began to weigh on stocks. With just two weeks of meaningful trading left in 2014, from a tactical perspective (multi-week/month time horizon) it is now important to contextualize the drop in oil prices and map out potential outcomes for stocks in early 2015. […]
Mastercard charges higher out of a tight technical base
Shares of payment solutions company MasterCard Inc (MA) have seen big gains off the mid-October gains, aided by a post-earnings jump that took them to fresh all-time highs. After a couple of consolidation weeks, MA stock now looks ripe to make a next move higher — and given the clearly defined risk/reward scenario, something to […]
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Dow Jones Industrial Average – Overbought readings last time led to 7% slide
The last time the Dow Jones Industrial Average had an RSI reading this high was December 2013. The $DIA proceeded to slide by about 7% over the coming month.
Large caps stand out in lacklustre market…beware
Over the weekend I flipped through the AAII investor sentiment reading from this past week and noted that at nearly 58%, the bulls haven’t been this present since late 2010. As a contrarian indicator this doesn’t give me the warm and fuzzies, so to speak. From a pure price action perspective within the S&P 500 […]
Large caps still stand out in lacklustre market
From a pure price action perspective within the S&P 500 I also note that 70% of its sectors are trading at all-time highs. While this is a bullish takeaway for trend followers and respecting that price is the ultimate arbiter for traders, the price action is also further straying from economic reality, which now firmly […]
Perspective for Thanksgiving week trading
It’s a holiday-shortened trading week for US stocks, with markets closed in observance of the Thanksgiving holiday on Thursday and early closing on Friday. While trading slows down by Wednesday afternoon, historically, plenty of trading opportunities have come up during Thanksgiving week, not least of which have come from retailer stocks as the holiday shopping […]
Walmart: Should You Buy or Short WMT Stock
Shares of retailer Wal-Mart Stores, Inc. (WMT) rallied big Thursday following a mixed third-quarter earnings report. From a technical perspective, WMT stock staged a major breakout move that looks promising for the longer-term and also helped push the Dow Jones Industrial Average to fresh all-time highs. In the near-term however I would caution buying Walmart […]
Understanding the power of the doji candle
Even when markets move sideways there are important ‘things’ to detect for the aware trader. So called doji candles, or unchanged days tell us about buyer/seller balance and indecision. The more doji candles we see in a row the more powerful an eventual breakout/breakdown move. Currently we are seeing a series of doji candles in […]
Why I am re-shorting the S&P 500
Watch the quick video why I am re-shorting the S&P 500 after last week’s steep oversold bounce: https://www.tradingfloor.com/posts/berger-the-levels-to-watch-as-i-short-the-sp500-2199304