Worse over for Frontline Ltd

The worse appeared to be over for companies such as Frontline Ltd (FRO) in the supertanker sector. The chart of FRO appeared to have bottomed out and seemed like it is in the process of accumulation by big players.

Click on chart to enlarge (FRO - Daily Chart)

Click on chart to enlarge (FRO - Weeky Chart)

More Upside to Come - BAC and United States Steel

Click on chart to enlarge (Daily Chart BAC)

Click on chart to enlarge (Weekly Chart BAC)

Click on chart to enlarge (X)

United Steel - Breakout move imminent

The daily and weekly time frame of United Steel (X) looks like its storing power and ready to breakout anytime now. The move up should be powerful if these two bigger time frame investors stepped in to buy.

Click to enlarge - Weekly Chart (X)

Click to enlarge - Daily (X)

Bullish - Start of a new bull market ?

Stock markets in a bullish mood lead by the financials. If one see a bull market coming, one should open a long position and sit tight. Stocks are breaking out of bottom formation and even the much beaten down solar sector looked primed to move.

Click on chart to enlarge (BAC)

Click on chart to enlarge (YGE) 

Click on chart to enlarge (AA) 

United Steel (X) Leading The Charge

Happy New Year, folks!

United Steel (X) is leading the way for the basic materials sector. United Steel had broken out of a nice basing pattern formed over a few month and had also gap up above its horizontal resistance and is now nibbling on its current resistance at $28.50. A close above $28.50 would be extremely bullish for this stock.

Click on chart to enlarge (Daily Chart)

Click on chart to enlarge (Weekly Chart)

Putting In A Bottom?

AIG, Yingli Green Energy (YGE) and United Steel (X) looks to be putting in a bottom. Savvy investors/traders with the patience to wait should be coming in and putting their money on the sidelines to good use by now with the 3 stocks looking to be under accumulation.

Click on chart to enlarge (X)

 Click on chart to enlarge (AIG)

Click on chart to enlarge (YGE)

S&P500 (Target 1880pts) & Coca Cola Company

Bears have staked their claims on the bragging rights till the next short term support of the S&P500 index at 1880 points. Bears have pierced the bullish support at the 50 DMA and looks to advance deeply (lower) in no time.

Click on chart to enlarge (S&P500)

Even Warren Buffet's Coca Cola company, a very strong dividend play, looks to be topping out with its multiple top formed on the weekly chart. This leads me to believe that the stock markets have further room to fall and the drop will be very broad based. Check out its weekly and daily chart appended below.

Click on chart to enlarge (Weekly Chart - Coca Cola Co.)

Click on chart to enlarge (Daily Chart - Coca Cola Co.)

Toppish Patterns - Get ready to ignite short positions

Things really change fast in the financial markets. As of close of 13 Dec 2011, it seems more likely that the markets are setting up for lower prices to come. Many leadership stocks are exhibiting toppish patterns and looks likely to roll over anytime. Tricky situation.

Click on chart to enlarge (Dow Jones Index)

Click on chart to enlarge (Apple Inc)

Click on chart to enlarge (LVS)

Click on chart to enlarge (CF)

Click on chart to enlarge (Chipotle Mexican Grill)

Get ready to ignite short positions!

AIG - Double Bottom Formation?

To go long or short? That is the question.

The huge move up by the S&P index formed an inverted H&S of sorts on the daily chart with the 200day resistance at 1265 pts creating resistance. Is this going to be a bullish call? I would want a clean break above the 200day MA to be long though. Is this a time to go long or place your short bets? It will be prudent to remain open-minded at this current moment.

Click on chart to enlarge (S&P 500)

United Steel (X) has formed an inverted H&S bullish pattern. The confirmation of this pattern will be break of the neckline. I would suppose traders would place tons of buy stop at slightly above the neckline, me included.

Bank of America - Double bottom?

Apple Inc. - As the leader goes, so goes the market?

Apple Inc. looks poised to test its 50day MA on the weekly chart this week. On the daily chart, Apple is in the midst of forming a potential H&S pattern. Price action had already broken its neckline and is now testing its last major support at the 200day MA.

Click to enlarge

On the weekly chart, Apple had a potential double top formation with spikes in volume. A break of the crucial $357 level which happens to be the neckline would see sellers coming in.

Click to enlarge

Market Sentiment Looking Increasingly Bearish - 17 Nov 2011

Ironically, I was harping on and on about the market being bullish for the past few weeks. Somehow, the charts are showing more footprints of sellers than buyers in this current moment. Being nimble and flexible is the key to survival. Go to cash or start looking for short-selling setups.


Click on chart to enlarge - Visa Inc

Click on chart to enlarge - US Steel Group

Click on chart to enlarge - Bank of America

Market Updates - Odds with the bulls

Both Dow Jones and S&P500 are still stuck in a symmetrical triangle pattern with a breakout on the cards soon. The odds are favouring the bulls as Dow Jones had already moved above its 200day MA. It is at this point in time that we must be flexible and trade the breakout on either direction of the move. I am currently on the bull side as my interpretation is that a mini bull run is on the cards towards the end of the year. However, we must remember that the market is designed to fool investors and traders alike. Flexibility in jumping from either camp is absolutely crucial. Be nimble.

Dow Jones Index

S&P500

Direxion Financial Bull ETF (FAS)

As Bullish as it can gets

The charts are very bullish indeed. Look at the S&P index. It looks like its going to make a new high very soon as it bounce off the top of the Ichimoku Clouds and is now aiming to clear the 200 day MA in its second attempt. Will it succeed? A break of the 200day Ma could see the index moving higher in a powerful move.

Click on charts to enlarge (S&P500)

Click on charts to enlarge (United Steel)

Click on charts to enlarge (YGE)

Click on charts to enlarge (AIG)

Click on charts to enlarge (BAC)

Always trade with stop loss.

Bias towards Bulls - Market Updates 2 Nov 2011

A pullback is inevitable after a strong run in recent weeks. Here is the support level for S&P500. Bias is to the upside if support at 1120 region holds. The bulls need a CLOSE above this level in order to resume the upside move.1273 region serves as strong resistance.

On the daily chart, the pullback or selling retraced all the way to the top of the Ichimoku Clouds after hitting the 200day MA. Top of Ichimoku Clouds served as strong support where buyers who missed the earlier rally up would hopefully pile in to support the prices.

S&P500 Daily Chart

S&P500 Weekly Chart

Trading United Steel (X) using Multiple Time Frames

Dear Readers, United Steel looks like the next big cap stock to make a huge move. All the 'stars and planets' (multiple time frames) are now in line for a huge move as the weekly traders stepped into gear. Let's take a look at the multiple time frames.

United Steel (X) Weekly

United Steel (X) Daily Chart - Looking at the market sentiment, what are the odds of X breaking higher above its 50day MA? Very high chance.

United Steel (X) 60-min Chart - Price action resting after breaking out of its 60-min trading range over a period of 3 weeks. A powerful move is imminent. A breakout buy!

United Steel (X) 15-min Chart - Lastly, if you are trading a smaller time frame such as the 15-min chart and your chart is showing you an enormous gain; hold on to your stock. Reason: A higher time frame trader might be coming in to push the prices even higher. Just look at all the above higher time frames which I have posted above and you'll understand.

 

Trade them well ! Have a great weekend.

BAC (Ascending triangle looks to move soon - 60min chart)

The 60 min chart of BAC looked poised to break to the upside with an ascending triangle formation. Meanwhile the daily chart is consolidating side ways as the coiled spring effect could make its move soon. The chart could also be interpreted as a H&S pattern if it breaks the trend line.

Change in trend - strong case for bulls (S&P500 weekly chart)

The obvious fact is that we are seeing the S&P500 index holding its long term support of 1139pts successfully 3 weeks back on the weekly chart

Moving down to the daily chart, we are seeing a change in character, or rather change in trend when the S&P500 broke out of its trading range, signaling that the Aug/Sep bottom would hold.

Adding to the strong case for the bulls, the Baltic Dry Index widely considered as the purest form of economic indicator, is already on the move, breaking out of its trading range back in Aug/Sep.

The Baltic Dry Index provides an assessment of the price of moving the major raw materials by sea and is known to be one of the purest form of economic indicator in the sense that only member companies who have actual cargo/ships are allowed to trade in this index with no speculative players involved at all.