Dow Jones Long Term Chart

2/14/09

This is why one of the reason I keep saying the bottom would be probably around 4500-5500 area for Dow Jones Index. Has anyone see how the long term trend line work well to define the boundary of long term Bulls and Bears??!!

S&P 500 Corporate Earning

2/14/09

The S&P has finally announced their 4Q earnings, however it has collapsed. As of this situation was expected after the financial sector collapsed last September, it has spread to every industries. No one or no assets have escaped the aftermath of Sub-prime issue.

Technical Chart of NYA

2/13/09

NYA is New York Composite Average Index which is composed all listed stocks traded in New York Stock Exchange. It represents more broader and meaningful than Dow Jones Industrial Index(DOW Index). Japanese Candlestick Chart pattern means a lot to picture the tug of war of each day trading truth behind. In addition to trend line, support and resistance (Moving average) with western techncial indicators, it all combine to give us very strong trading signal to forecast the future trading days action. I hope you all are able to understand and know how to interpert what I always insists to analysis stock charts. It does give us all information to give you an edge to win. Trading or Investing blindly with just bull shit news or so called stock "guru" or analysist will get your trading capital going to zero or negative. By learing technical analysis, you are totally control your money trading in your hand.
Enough emphasis about studying Technical picture of stocks is very very very important nowsday than before. From the above chart, the support level of NYA is around 5000-5050. If day closed below this zone, retest or make new fresh Bear Market lows are very very possible. Today's closing in almost low of the day and it formed quite bearish. Therefore, if Tuesday intra-day that NYA is breaking below 5000, it more likely ignite huge sell off (mean another 300+ point lost for Dow). Recent days, Dow index is the only major index making lower low since Noverber low. It will eventually dragging S&P and Nasdaq in sync movement soon. Be Alert!!! On the other hand, if we successfully test the support zone for major index, expect relative strong rally up to 50MA again. But, I am still remain bearish mode because I have pointed out other reason which I shown it on chart on last few days post. Go check it out why I said so.

Educational Chart of S&P

2/13/09

1. Support/Resistance
2. Moving Average
3. Chart pattern
4. Trend line
5. Candlestick pattern
6. Volume
7. Technical indicators (few of your favorite is enough)

This is very much you need to construct your trading tool. However, it may need to see more quantative data or market breath information to sharpen your skills or support your analysis.

Stimulus vote pass but no surprise for market

2/13/09

It is the 13th black Friday. But S&P is in indecision mode today. It is still bounded roughly by 810-880 since middle of January. The chart pattern is forming but everyone is still waiting the end result. We have the stimulus bill pass and soon to be law by coming monday when Mr. President Obama sign the bill. The Banking rescue plan have announced and is ongoing to do the "Stress Test" currently on total of 18 US banks. But, market hate uncertainty. It may be too long to wait to see which banks would be prevail or not. In fact, the stock indice chart is looking terribly and is about to cliff dive from here technically. Am I right again of the call of another beginning of down leg here?! Time will prove. We will see. Wish everyone has sweetest Valentine's Day tomorrow.

Market is still in range bounding

2/12/09

On last trading hours Bulls are showing their hand, market got its technical rebound. Actually, the short sellers are recovering some of their short positions. However, the damage is done. Dow indexe is trading lower low and gradually dragging S&P, Nasdaq too soon. Also, the CPCE chart is showing the top of market very soon. Watch out below, folks!!! Remember, I am seeing the 800-805 of SPX is last support to keep this range trading. Once that mark is gone, 740 is next stop for SPX. By the time if SPX is going down toward 740, DOW indexe is probably trading new lows around 7000-7200. Also, Nasdaq will also going down faster than you think while the next leg down. No matter what our government do, it will not help at all.

Intra-day update SPX chart

2/12/09

It is 11:30am New York Time. The broader market indexe S&P is handing the last defense area (810-820) this whole morning. As shown on above chart, it just fell below the trendline but there are some bulls are trying fighting the bears. Will there enough buyers today to make the trend reverse?! Or are we heading toward next fib level downward. I am more toward the latter issue.

Indecision Day

2/11/09

After another bloody common "sell the news" sell off yesterday, market is not going anywhere. The above middle chart is showing few of data charts I watch everyday to determine the breath of the market. Yes, I said something in the chart. If this market is performing as I expected, retest the lows of 2008 or even lower is very very very likely. Folks, if this is the case, lots of so called wall street experts would need to go back to school again. It is because majority of them keep saying we hit the market bottom last year. I am often laughing this statement. The market is going to make new lows in this year very soon. Yes, I do make the statement here. I am not afraid to call it because I am so far much better than those "experts", market "guru".....

The $2 Trillion does nothing good

2/10/09

I often keep saying that if the troubled banks are not nationalized, it will not solve this mess. Also, today the new bank bailout plan sounds like good story telling. However, this does not provide the details on how to remove the bad assets, rebuild or restore frozen credit market. Technically, today is showing very bad bearish mode. If no rebound tomorrow at the opening hours, watch out below....falling floors....7000 for DOW....6000....5000. Not yet, not yet. Let see tomorrow market action. It seem my bearish mind always keep me win. Oh, let share how DOW been losing points for recent months:

Jan 30, 2009! Down 775 points for the month!

Dec 31st, 2009! Down 53 points for the month.

Nov 28th Down 496 points in November

October 31st! Down 1526 points in October.

Sep 30th! Down 692 points in September.

What would happen for this month?!

S&P update

2/8/09

The major stock market indexes are reacting bearish news in very good way. Also, bulls are taking hold the market in hand. However, this is probably the Wave 4 correction rally(It is one of major technical studies) Let see how market goes with the stimulus package on Tuesday.