The recent doom and gloom can make it seem like the Market has suffered potentially fatal setbacks. However, a glance at a monthly chart of the S&P 500 Index shows a pretty normal-sized correction, based on recent swings.
It is worth noting, however, that the market has had four down months, and the MACD Indicator looks like it is rolling over. So, a move up here would certainly help Bulls feel more confident.
Moving down to a weekly chart of the S&P 500 Index, it is easy to see that a similar pattern occurred last year. At that time, the Triangle pattern resolved upwards. However, Triangles are often considered continuation patterns … and last year's Triangle came during a big move up. Arguably, this year's Triangle comes after breaking last year's up-trend. As a result, some traders will assume that it is more likely for the pattern resolve downwards.
Zooming in a little closer to a daily chart … it shows a lot of movement with little real change. The magenta zigzag indicator highlights moves of at least 5%. Moreover, price has crossed the 1160 level about a dozen times during September.
That kind of price action can create whipsaws. However, the next chart shows that there is a clearly defined range; and when price finally makes an extended move beyond it, traders will likely look for an entry.
In technical trading, price is the primary indicator. The market will tell you what's working.
The recent doom and gloom can make it seem like the Market has suffered potentially fatal setbacks. However, a glance at a monthly chart of the S&P 500 Index shows a pretty normal-sized correction, based on recent swings.
It is worth noting, however, that the market has had four down months, and the MACD Indicator looks like it is rolling over. So, a move up here would certainly help Bulls feel more confident.
Moving down to a weekly chart of the S&P 500 Index, it is easy to see that a similar pattern occurred last year. At that time, the Triangle pattern resolved upwards. However, Triangles are often considered continuation patterns … and last year's Triangle came during a big move up. Arguably, this year's Triangle comes after breaking last year's up-trend. As a result, some traders will assume that it is more likely for the pattern resolve downwards.
Zooming in a little closer to a daily chart … it shows a lot of movement with little real change. The magenta zigzag indicator highlights moves of at least 5%. Moreover, price has crossed the 1160 level about a dozen times during September.
That kind of price action can create whipsaws. However, the next chart shows that there is a clearly defined range; and when price finally makes an extended move beyond it, traders will likely look for an entry.
In technical trading, price is the primary indicator. The market will tell you what's working.
Moneyball is out in theaters. Lots of people consider it a sports movie; but, it is so much more.
Yes, it is the film version of the book by Michael Lewis (which was a pretty good read). Still, underneath the sports story, it is about finding and refining an edge (or sustainable competitive advantage).
If you've ever thought "if I'm so smart and talented, how come I'm here"? You're not alone.
This is a movie about someone who "should" have been a star player … but never quite got there. Instead, he moved up to the front office of a pro team – and made his mark there, differently than he expected.
The big idea? Rather than following conventional wisdom, find something that gives you an edge. For example, If you ignore a lot of the obvious flaws that damage players in the eyes of professional scouts (bad legs, can't field, too thick in the middle, likes strip clubs or gets high too often), and you focus instead on a single, telltale metric — the percentage of times that they get on base — then tons of players who don't cost very much will turn out to be winners. What would happen if you built an entire team out of these green-diamond misfits?
Where there are undervalued assets to exploit, there are by implication overvalued ones to avoid. Sounds like business or trading, doesn't it? In any case, the scope and scale of the overvaluation is often so large, learning to identify and exploit those situations can be a winning recipe.
Here is a video trailer of the movie.
The underlying message is to focus a critical eye on everything you do and be vigilant about the process, reassessing, challenging assumptions and constraints to find a way that works for you.
Moneyball is out in theaters. Lots of people consider it a sports movie; but, it is so much more.
Yes, it is the film version of the book by Michael Lewis (which was a pretty good read). Still, underneath the sports story, it is about finding and refining an edge (or sustainable competitive advantage).
If you've ever thought "if I'm so smart and talented, how come I'm here"? You're not alone.
This is a movie about someone who "should" have been a star player … but never quite got there. Instead, he moved up to the front office of a pro team – and made his mark there, differently than he expected.
The big idea? Rather than following conventional wisdom, find something that gives you an edge. For example, If you ignore a lot of the obvious flaws that damage players in the eyes of professional scouts (bad legs, can't field, too thick in the middle, likes strip clubs or gets high too often), and you focus instead on a single, telltale metric — the percentage of times that they get on base — then tons of players who don't cost very much will turn out to be winners. What would happen if you built an entire team out of these green-diamond misfits?
Where there are undervalued assets to exploit, there are by implication overvalued ones to avoid. Sounds like business or trading, doesn't it? In any case, the scope and scale of the overvaluation is often so large, learning to identify and exploit those situations can be a winning recipe.
Here is a video trailer of the movie.
The underlying message is to focus a critical eye on everything you do and be vigilant about the process, reassessing, challenging assumptions and constraints to find a way that works for you.
At the Bloomberg Markets 50 Summit in New York, last week, Dalio discussed the European debt crisis, investment strategy, and his outlook for the global economy. Here is a video.
At the Bloomberg Markets 50 Summit in New York, last week, Dalio discussed the European debt crisis, investment strategy, and his outlook for the global economy. Here is a video.
Bulls and Bears are watching this chart for signs that the other side is giving up.
Meanwhile, price has been moving within a fairly narrow decision zone.
A look at a daily chart of the S&P 500 Index shows that it recently bounced off the target zone of the recent head-and-shoulders topping pattern (shown by the grey dotted line). Since then, it has made a series of higher lows (marked by green arrow); only to fail at the neckline resistance (marked by the red arrow).
While price has held above recent lows, we have still seen fairly strong selling.
Consequently, traders may expect to see bears push the short side while trading stays beneath resistance. A poke below the early August bottom wouldn't surprise me, and would likely take out a bunch of stops.
