As an intraday (or short-term) trader, we do best when we recognize repetitive price patterns and frame each trading day by what’s happened in the recent past. For now, we’re seeing a stabbing bull gore the active bears intraday while price trades lower. Of course, if you are an intraday trader, you might have NO IDEA that price is actually retracing or declining in a sell-off on the Daily Chart. Here’s the pattern that keeps repeating: From the peak near 2,600, SELLERS have actually been winning the WAR while BUYERS have been winning every single BATTLE. In other words, price is indeed selling off from 2,600 toward the lower targets on the Daily Chart near 2,550. While the Daily Chart is the recent short-term … [Read More...]

In the heat of battle, it’s often helpful to raise your perspective to higher ground. That’s what we’re doing here with the clear price patterns and breakout (bullish) phases in this strong, ongoing bull market in stocks. Look Closely at the Bullish Breakouts and Resistance Levels: From the beginning of 2017, the stock market carved a series of higher highs and higher lows, building the structure of a larger uptrend in motion. I’m highlighting the resistance levels – mainly at 2,400, 2,500, and 2,600 Round Number Levels, and what happened NEXT when price broke ABOVE these levels. In fact, these green highlights represent the forward progress in 2017. If you’re surprised by this move, don’t be.  Look at the chart – this pattern keeps repeating. The … [Read More...]

If you enjoy trading trend reversals and surprise bullish rallies (and breakouts), AutoZone (AZO) is the stock for you! Here’s the V-Spike Reversal from Down to Up and the New Levels to Watch: AutoZone (AZO) stalled with a Distribution Pattern near $725 with a breakdown (breakout) and Trend Reversal DOWN in April 2017. From there, price collapsed from the $700 level toward the $500 Round Number pivot. Rather than build a “Rounded Reversal” or Accumulation Pattern, buyers intervened to create a V-Spike Reversal that catapulted share prices through $600 and now $700. We’re watching confluence target – now achieved – at the $700 price level. Use this as your Bull/Bear pivot for short-term trading strategies. Price initially stalled into the 38.2% … [Read More...]

We strongly suspect that the Fed will raise rates at their Wednesday, December 13th meeting. What’s the picture setting up in our Quad-Market Grid before the announcement? Money continues – without stopping – to flow INTO the US Stock Market. At the same time, Gold saw money rapidly flow OUT OF it recently. The US Dollar Index initially saw bearish money flow but price turned higher with a break above a falling trendline and bullish bounce ahead of the Fed announcement (the Dollar typically benefits from higher interest rates). Finally, Oil continues its upward bullish drift that developed a sideways trading range beneath $60.00. We’ll keep you updated on these developments before and after the announcement so stay tuned! Follow along with members of … [Read More...]

We’re back from a blogging sabbatical!  We’re back to our regular daily posting and updates. What a better way to start back with a broad picture of the surprising and persistent movement in money flow so far in 2018? Let’s begin with a simple grid and ease back into the markets: After a relatively muted or range-bound end to 2017, markets ignited at the end of the year and continued so far into 2018. What’s the simple picture? Stocks continue to explode higher along with commodities Gold and Oil. Unfortunately, not all markets can benefit from rampant and non-stop bullishness; the sacrificial lamb in this case in the US Dollar Index. Keep in mind that trends, once established, have greater odds of continuing than … [Read More...]