Sunday, July 19, 2015

Does The Market Need To Correct?

nasdaq technical analysis QQQ

The Nasdaq jumped to all time new highs on Friday. However, the manner which it did achieved this milestone is quite worrisome. As shown on the chart above, price gapped up above the upper Bollinger Band (which indicates that price is overbought). This is quite rare, were price actually OPENED above the upper Bollinger Band, rather than just piercing it with an end of day candlestick (April had a similar setup which the Market pulled back). This leads to very unstable price action, additionallyl the Market had ANOTHER gap up (gaps highlighted via red filled rectangles). In the chart above, there are four recent gaps. I believe that these gap ups must be filled or else the Bulls will have a tough time going higher. 

Tuesday, July 7, 2015

One Massively Oversold Chinese Stock

The Chinese Market has had a brutal crash over the last few weeks. I think this may of setup some possible buy opportunities (very high risk). One chart I really like is SINA, as it is massively below the the lower Bollinger Band for two consecutive days in a row (refer to chart above). What I really like about the stock is prior to the crash it had made recent new highs, which shows strength. I think this is probably worth a short term trade: for a nice oversold pop. However, be warned Chinese stocks are quite dangerous (always have been IMO).

Tuesday, June 16, 2015

Should The Bulls Be Concerned?

The chart above is the S&P 500 and the VIX with 50-1 Bollinger Band settings, which was shown to me by Tom McClellan. When the VIX is above it upper Bollinger Band, the Market gets quite ugly. Take note on the chart below, the VIX is currently above its upper Bollinger band (highlighted with black rectangles). Past instances at these VIX levels resulted in massive damage to all Market indexes. At these VIX levels the bears are clearly in charge, despite today's rally. Until the VIX retreats below the middle Bollinger Band, consider this Market in the bears hands.

Thursday, May 28, 2015

Prima BiodMed Will Likely Have a Huge Move

PDMB technical analysis

Based on my proprietary analysis it is likely $PBMD will have a huge rebound. The caveat is, the stock is quite volatile, thus dangerous to buy. Its hard to gauge when it will bounce because it has a very wide buy range due to the speed of its impressive up move. My wide buy range based on my  proprietary system is from $2.47-$1.50. Its difficult to gauge when it will bounce, but I will personally wait till it hits my low buying range for me to reevaluate purchasing this stock.