Weekly Market Update

*** WARNING: This is not trading advice, so please don't use it for your trading decisions. Any actions you take based on the opinion below are solely at your own risk.

The positive MACD divergence highlighted in the chart below has certainly led to an increase in the Dow, but on rapidly decreasing volume. This rally, therefore, is suspect. A break of 13,250 could lead to another decline (watch the volume pattern!). So, the plan is to enter a short trade at 13,250, with an initial target of 12,800 and a potential target of 11,950.



2007-08-26 Outlook
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Midweek Market Update

*** WARNING: This is not trading advice, so please don't use it for your trading decisions. Any actions you take based on the opinion below are solely at your own risk.

What a wild ride! The second trade setup (see August 5 Market Update) started to play out with a short at 13,250, but the Dow spun on its heels around the 12,500 level and forced a closure of the trade today at 13,100. Since the swift market gyrations could be signaling a potential change in the trend, we need to be careful with long entries. To do so, look for rallies (or declines) accompanied by solid volume. So far, declines have demonstrated this correlation since early July, whereas rallies have been supported by anemic volumes.

2007-08-21 Outlook
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Weekly Market Update

Scary week. Are scarier times ahead? Read More...
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The quest for a GTD application

GTD is a great methodology, but what is the best app for it? Read More...
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