Master Charts Trading - Stock Market Indicators & Trade Alerts
Connect To Us!
  • MasterChartsTrading
  • Blog
  • Sign-Up
  • Members
    • Elite Trading Blog
    • Stock Speculator Blog
    • Training Library >
      • Basics of Trading
      • Risk & Trading Psych
      • Trend Identification
  • Help
    • Hall of Fame
    • Social
    • About Us
    • Contact
    • FAQs
    • Disclaimer
    • Refund Policy
    • Privacy Policy
    • What We Trade
    • Newsletter samples

Is This a Rally Into Resistance?

4/16/2014

0 Comments

 

Tuesday April 15, 2014

Is This a Rally Into Resistance?

  Volatility continued. IWM and QQQ had a large range day. IWM gained and lost as much as 2.64%. It crossed the 200 day moving average (DMA) and finally printed a doji hammer above the 200 DMA. Hammers generally are signs of support. All indices are oversold, so a rally is likely, but will this rally take out the recent highs, or will it simply be a rally to the 50DMA followed by another leg down?

  NASDAQ is certainly ripe for a rebound as are the small caps, yet so far there was no buy signal given by any of the market breadth indicators we follow. General market is still in a corrective phase as indicated by our Market Breadth Index ($VMBI) and other indicators.

  Defensive sectors continued to outperform. Utilities, Consumer staples and the treasuries all gained. TLT is pushing higher, but is short-term overbought, so a retrace to around $109 is likely.

  As I explained in my previous several newsletters, EEM is in the middle of a throwback to the $39-40 area (Fibonacci 61-38% retracements). Once it stops retracing and holds support, it would be a great buying opportunity.

  Gold had a very bad day. At one point, it was down as much as 3%, before settling at $1302.70 with a 1.84% loss. If this rally in gold is to continue, gold needs to rally soon, preferably to above the 50 DMA.

  I mentioned before that even though gold closed above the 50 DMA, GDX did not yet do so. Now the rising wedge formation that started on March 26 may have been broken to the downside. If true, GDX can collapse by around 15% and retest December 2013 lows.

  IYR is pushing higher with an over 1 percent gain on good volume. There is some resistance in the $68.50-68.90 area, but I believe it will take those highs out.

  Oil is consolidating. Resistance is at $104.55-105.22 area. It is likely to push above this resistance.

  Natural Gas is getting closer and closer to closing below $4.52-my threshold for going short again

  Bottom line: Markets are ripe for a rebound, but no buy signal has been given yet.

  Open positions: GDX, NUGT, IYR, TLT, EEM

  Hedging position: SPXU

Picture
Ready to trade? Sign-up Today
0 Comments



Leave a Reply.

    Picture
    Picture

    Subscribe to our mailing list!

    * indicates required
    /* real people should not fill this in and expect good things - do not remove this or risk form bot signups */

    Intuit Mailchimp

    Click to set custom HTML
    Picture
    Picture

    Archives

    January 2025
    December 2024
    November 2024
    October 2024
    September 2024
    August 2024
    July 2024
    June 2024
    May 2024
    April 2024
    March 2024
    February 2024
    January 2024
    December 2023
    November 2023
    October 2023
    September 2023
    August 2023
    July 2023
    June 2023
    May 2023
    April 2023
    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014

    RSS Feed

  All information on MasterChartsTrading.com is for educational and entertainment purposes only, and should not be construed as a recommendation to buy, sell or sell-short said securities. Read full disclaimer.