Welcome and thank you for visiting!
The charts, graphs and comments in my Trading Blog represent my technical analysis and observations of a variety of world markets...
* Major World Market Indices * Futures Markets * U.S. Sectors and ETFs * Commodities * U.S. Bonds * Forex
* The content in my articles is time-sensitive. Each one shows the date and time (New York ET) that I publish them. By the time you read them, market conditions may be quite different than that which is described in my posts, and upon which my analyses are based at that time.
* My posts are also re-published by several other websites and I have no control as to when their editors do so, or for the accuracy in their editing and reproduction of my content.
* In answer to this often-asked question, please be advised that I do not post articles from other writers on my site.
* From time to time, I will add updated market information and charts to some of my articles, so it's worth checking back here occasionally for the latest analyses.
DISCLAIMER: All the information contained within my posts are my opinions only and none of it may be construed as financial or trading advice...please read my full Disclaimer at this link.
* If the dots don't connect, gather more dots until they do...or, just follow the $$$...
UPCOMING (MAJOR) U.S. ECONOMIC EVENTS...
* Wed. July 28 @ 2:00 pm ET ~ FOMC Announcement + FOMC Forecasts and @ 2:30 pm ET ~ Fed Chair Press Conference
* Fri. July 30 @ 8:30 am ET ~ Core PCE Price Index Data
* Fri. Aug. 6 @ 8:30 am ET ~ Employment Data
* Wed. Aug. 11 @ 8:30 am ET ~ MoM & YoY CPI & Core CPI Data
* Thurs. Aug. 12 @ 8:30 am ET ~ PPI m/m & Core PPI m/m Data
* Tues. Aug. 17 @ 8:30 am ET ~ Retail Sales & Core Retail Sales Data
* Wed. Aug. 18 @ 2:00 pm ET ~ FOMC Meeting Minutes
* Wed. Sept. 8 @ 2:00 pm ET ~ Beige Book Report
*** Click here for link to Economic Calendars for all upcoming events.
Monday, November 19, 2012
The Magic of "Levitation"
This definition of levitation is from Wikipedia:
"Levitation (from Latin levitas "lightness") is the process by which an object is suspended by a physical force against gravity, in a stable position without solid physical contact. A number of different techniques have been developed to levitate matter, including the aerodynamic, magnetic, acoustic, electromagnetic, electrostatic, gas film, and optical levitation methods."
When markets gap up on the open, they remind me of something which is levitating...they seem to be suspended/elevated by combined forces which have exerted energy through momentum. As you can see on the Daily charts below of the four Major Indices, after today's (Monday's) opening gap up, they are all still under the influence of negative momentum, albeit two days' worth of decelerating negative momentum.
As shown on the 2-day comparison chart below, the Nasdaq 100 leads in terms of percentage-gained on the two-day bounce, followed by the Russell 2000, the S&P 500, and then the Dow 30 Index. This suggests that the current market appetite favours the riskier sectors over their blue-chip counterparts. Whether buying continues to push and hold momentum above the zero level remains to be seen. It would appear that the high-beta stocks within the NDX and RUT are the ones to watch over the near-term. Buying momentum within all four Major Indices can continue to be monitored by viewing the Momentum indicator, as well as the percentage-gained on a daily basis. Any weakening of these may be a signal that this recent bounce may have run its course, particularly as the Indices approach the underside of their major trendline breaks (which I've written about in recent posts).