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)

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) 

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

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.

Wyckoff Method of Technical Analysis - BAC (Oct 2011)

Dear Readers, I was looking for signs of accumulation for the stock of Bank of Amercia (BAC) and decided to apply Richard Wyckoff's method of techinical analysis to the chart pattern of BAC.

BAC could possibly be at the stage where it is preparing to make the jump across the 'creek' a.k.a major resistance OR a failure to make the jump could see it coming down to the $6 or even $5-plus region for a retest of the support.

I came to know of Wyckoff's method of technical analysis when I came across "The Three Skills of Top Trading" by Hank Pruden whereby the Wyckoff schematics of accumulation and distribution were covered extensively by the author. Fantastic read! This book is a must read !

Abbreviations used:

Selling Climax (SC): the point at which widening spread and selling pressure (high volume) usually climaxes and panicky selling by public is absorbed by professional interest at prices near bottom.

Automatic Rally (AR): Relief rally where short-covering can easily cost prices to shoot up

Secondary Test (ST): A retest of the area of selling climax to test the supply and demand at these levels. For a bottom to be found, volume and price spread should be significantly diminished as market approaches
support.

Spring: Also known as a shakeout.

Sign of Strength (SOS): Advance on high volume and price spread

Last Point of Support (LPS): The ending point of a reaction or pullback where support was met, also known as a retest of support where long position can be initiated or to add to profitable ones.


Have a good weekend!

Market Going Sideways - Ready for Bullish Breakout Or Not

S&P 500 is now just below its Ichimoku Clouds. The mere fact that it has not bounce off the resistance and moved lower is perhaps good news for the bulls. The index is now just hugging below the resistance line and if it breaks out of the Cloud, look for it to hit at least the 200 day MA at 1275pts. There are also some positive indication from the Ichimoku Cloud trading overlay that are of favorable to the bulls. If the market favor the bulls, we could see some upside next week.

S&P500

Bank of America

Market updates for week ending 14 Oct 2011

S&P500 rallied and closed just at its major resistance on Friday. We could be seeing a slight pullback for the next few days to 'retest' the resistance-turned-support for S&P500 at the 1185 area. If we could hold the 1185 level, the market could turn bullish into the weeks ahead.

S&P500 Daily Chart

S&P500 Weekly Chart

MGM

BAC

BAC - Big Move Coming Soon

Dear Readers, we'll have a huge move coming soon for BAC as it is forming a symmetrical triangle overthe past 2 moinths. Question is: is it going to be up or down? The bulls have a strong case as the MACD is currently displaying a positive divergence. BAC has strong support at the $6 level and if this $6 mark is breached then all hell will break loose. Nonetheless, its still best to wait for the breakout to occur before initiating either a long or short position.

BAC

This downturn should serve as a good buying opportunity as the Baltic Dry Index is telling us a different story as it had already move higher out of its trading range. This spells good news for the economy. I have a post on the Baltic Dry Index here. For all we know, the August low could be the lows for this year!