Brick Wall Pattern (ES)

Here we have the example of a Brick Wall Pattern. Professional traders absorbed all the selling by covering their shorts or by buying the panick selling. 3 bars in a row reflected this pattern.

MSM Update

Here we have an update of the MSM (Muscat Securities Market). From the chart from a technical standpoint, its obvious that the MSM is in a box. If we break resistance with considerable volume, then I am looking for a push up. Price has to close above the box at least for a day in order for me to become bullish.

IWM vs SCZ

Here we have a chart of both the SCZ (small caps ETF) and the IWM (Russell 200 ETF). Note how SCZ usually tops and bottoms right before the IWM. Lets see if this correlation stands true this time.

AUD/USD

Heres a chart of the AUD/USD reflecting the Aussies strength. This can be seen by the higher lows and higher highs which I have pointed out in the chart. Price action or accumulation like this doesn't go unoticed by professional traders. 

TLT (ETF)

Heres a TLT  update. A chart of the 20 year bond fund. It has finally broken off resistance after absorbing all the selling at that resistance level. Things look bearish after this confirmation. As all the buying into bonds indicates that the elephants are fleeing the stock market and that triggered bond buying.

USD/JPY S/R Trans Chart

DIA, QQQQ and SPY (ETF's)

Here we have three ETF's, the DIA which is the Dow ETF, the QQQQ which is the NASDAQ ETF and of course the SPY which is the S&P 500 ETF. All of them are neutral at the moment, they could go either way. But am still leaning on the bull's side as we are still in a bull market.

GBP/USD & FXB

Similar to the example below, we use the FXB to help us in our analysis of the GBP/USD.

EUR/USD & FXE

Here we have to charts on othe EURO/USD spot FX chart and the FXE which is the EURO ETF. I used the FXE to help me in my analysis of the EURO/USD as the picture wasn't clear. As demonstrated the FXE can be useful when analyzing the EURO.

EBAY Update

Heres an update of that EBAY chart below, we got the follow through we were talking about after the 2 chart patterns.

ETF Pairs as Sentiment Gauges: SPY and VXX

Heres a chart of the SPY (S&P 500 ETF) vs the VXX ( Volatility Index ETF or VIX ETF). It is clear that when ever the SPY goes up the VXX goes down and vise versa. Theres an -87% correlation between the two always confirm each other and reflect market sentiment. When the VXX is above the SPY the market is bearish and when the SPY is above the VXX the market is bullish.

Ebay 5 min chart.

Here a 5 min ebay chart where we got a short term reversal after a strong upmove which was due to Intel's earnings. After the up move sellers came in and started hitting the bid. Ill keep an eye on this chart, which I think will probably dip and provide signal a good Risk/Reward entry.

Muscat Stock Market Index (MSM) & Emerging Markets ETF (EEM)

Interesting Chart (GBP CHF)

XLP vs XLY

Here we have two charts one of XLP which is the S&P 500 ETF for Consumer Staples and XLY which is the ETF for Consumer Discretionary. Notice the strength and weakness in these two charts, one is stronger then the other and by determining which is stronger we are able to determine the market outlook.

When XLY is above XLP that tells that that consumers aren't afraid of the future outlook of the economy and spend money on discretionary products that aren't a necessity. The opposite stands for when XLP is above or stronger then XLY, it tells us that consumers are fearful and only spend their money on necessities and things they really need. Now how does this help us? Right now XLP is stronger then XLY and that tells us that consumers are still fearful and dont go around splashing cash on items they down really need. And that is bearish on the overall outlook of the global economy.

HD is a good example of the weak XLY sector as demonstrated in the chart below and KFT is also a good example of a stock in the XLP sector.

Couple of Charts of Stocks and ETF's with Illustration's

Update (BP)

Heres an update on (BP)

Enjoy!

Lessons While on a River with a Rod in Hand — John Lamberg, engineer/inventor; and Mark M McNabb, finance professor,Virginia Tech

Reflections on a Lake

1. Be on the lake when the fish are feeding. Know what sectors the market likes.

2. Don’t go fishing when the lake is packed with tourists. You probably won’t be able to get near your favorite fishing hole, and even if you do, all those churning propellers will scare the fish away. If everyone is playing the same stock idea, the easy money has been made.

3. Come prepared with well-maintained fishing equipment, an adequate supply of bait, lures and sharp hooks, and an extra supply of patience. Give your best ideas time to work, but don’t use margin to see them out.

4. Don’t make noise; you will scare the fish away. Fidelity never speaks; why should you?

5. Don’t fish where there are no fish. Know the structure of the lake and the habits of the fish you are trying to catch. Electronic fish finders can help you locate fish, but it won’t make them bite. If no one else is buying, why should you? Catching falling daggers can kill a dip-buyer.

6. Despite your best preparations, sometimes the fish just won’t bite. Don’t be discouraged; go back to shore and enjoy the day, then come back another time. Even the best traders are only 60 percent right. Just make the winners big ones.

7. Sometimes you find yourself in the middle of a school of feeding fish. Keep your hook baited and in the water. Correct equipment problems quickly, and get the bait back in the water. When your stocks are running up, stay with the trend.

8. When a big one takes your bait or hits the lure, set the hook firmly, keep tension on the line at all times and play the fish until it tires. Keep the landing net out of sight. Don’t sell winners too soon.

9. When a really big one breaks your line, take it in stride. He may still be in the area, so always have a backup fishing outfit aboard. If a market decline washes out a group, get ready when the group takes off again.

10. Know when to come back to shore, particularly when whitecaps start to appear or there are storm clouds in the distance. If the market gets crazy, go to cash while you figure things out.