Market Perspective/What to watch/Possible major moves April 18, 2010
Posted by wallstreetbuddha in Analysis, Markets, Trader Education.Tags: BAC, How to Pick Stocks, Profit from Banking Collapse, Trader Education
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Friday morning the SEC commanded Goldman to bend over and assume the position. Emotions ran out of control sending the indexes to correct 1%. Huge volume, volatility spiked on the VIX. It is times like this that I look at the market in general to determine where it may be headed. Today I checked out one of my favorite sites, www.barchart. com. Specifically I look at the “Price Volume List” showing where all the action in the market was. I’ll grab this list to watch, analyze, draw trendlines, and anticipate future breakouts. Just by sorting the list in order from gainers to losers, it is obvious that the selloff in the indexed is highly concentrated in the financial sector. Names like Goldman, Citi, JPMorganChase, Bank of America are the losers. The whole suit against Goldman brings into question of the health of the economy and the banking sector in general. Maybe the recovery isnt over. I’m looking for a possible catastrophic collapse of the financial sector once again. Who knows. You can only speculate. So just incase, I’ll keep an eye on the banks. Critical Support and Resistance levels are drawn on the chart below.
I could have charted the other banks, but because sectors are correlated, the charts are essentially the same. You only need to chart one of the stocks, BAC is charted below. When alerts get hit just look for confirmation later in the other banks’ charts later.
You can see that BAC has been flat between the yellow trendlines. When the stock trades outside of the yellow range I will initiate a position in that direction.
Good luck.
GOLD—-ACTING “uP” June 30, 2009
Posted by wallstreetbuddha in Markets.1 comment so far
I’m not going to get into it. Tell me what you think. A picture is worth a million words. Yeah?
Stay posted to know when I pile in on this trade. Follow me on Twitter or RSS Feed.
SPY Analysis June 16, 2009
Posted by wallstreetbuddha in Analysis, Markets.Tags: SPY
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Hello Kids,
This is the latest analysis on SPY. Looks like I was right. The 200 day EMA is acting like a resistance point for the market. The market is stalling out as buyers are at the sidelines waiting to see if the recent rally will fall apart. The popular opinion seems to be that the market has rallied too far. Everyone and their mom is talking about a recession. And the rookies at the gym are telling me it’s the end of capitalism as we know it. Psychologically I think that the recession is over. There is only growth from this point on. Too many people are bears which suggests that the crash is over.
SPY 6mo/daily bars
SPY (zoom in)
GLD Looking Bullish?!!! $1000+ an Ounce Gold?? May 23, 2009
Posted by wallstreetbuddha in Analysis, Markets.2 comments
Thesis:
The $100 level on GLD is where I intend to pay close attention. Given the current condition in the market, I theorize that the global financial crises has caused many nations to PRINT MONEY in order to maintian liquidity and avert a depression. Historically speaking, when the U.S. printed too much money, gold prices skyrocketed. Well, here we are again, printing money. The only difference is, the WHOLE WORLD is printing money. I speculate that we will have a huge bullish run on gold pretty soon here. Can you imagine GOLD trading at $1500 and ounce???
Anti Thesis
Gold is way overbought. If GLD breaks slightly above the $100 level and reverses, A DOUBLE TOP FORMATION MAY ENSUE. Needless to say.That would be a serious bearish trade. Set those alerts at $100. When we get to $100, feel the market, sectors, sentiment. And pull the trigger. There will be major action at this level and Whether you’re bullish or bearish on gold, we have a trade setup with favorable risk/reward.
BTW, I’m way bullish on Gold —for now. There really is no way to tell until I’m ready to pull the trigger.
-Sharky
