Sunday, May 10, 2009

What This Week May Bring To the Market

Lacking an omniscient crystal ball, I rely on technical analysis (TA) while keeping the bigger macro picture in mind (at least I try to). To supplement my elementary TA skills, I regularly go to several sites on the Internet, and I want to share two of them here.

First one is Tape Talk at The link below is the latest Talk available to the general Internet public, in which Q-man, a.k.a. Quint Tatro, discusses the general indices and sectors he's been watching. (They have another set of videos for their paid subscribers.)
  • Bullish Until its Not
    "The bulls were not going to give up easily Friday as they worked hard to regain just about all that was lost in the S&P during Thursday’s slide. The NASDAQ didn’t have as bullish a showing but what do we make of the underlying sectors? "

His analysis mostly uses trend lines and price/volume action, clean and simple. I participated in his online Boot Camp of stock analysis last year.

Second one is from a paid site, They have a free newsletter that you can subscribe to, which is a very, very detailed discussion of major indices by By Steve Nelson & Matthew Frailey. They use all sorts of TA tools - trend lines, price/volume, Elliot Waves, Fibonacci retracement numbers, RSI, MACD, etc. What I find it extremely useful is their long-term charts with parameters (EMA, Stochastic, MACD) set to clearly show when the bull market ended and where we may be heading. The link below is the latest Newsletter.

They say an interesting thing which is worth highlighting: the last year's high was in May, right in the option expiration week. Will the history repeat itself? We'll see soon enough, but from their analysis the S&P 500 index seems to be fast approaching some critical resistance levels in various parameters. As is, the index is extended.

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