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.