QuantitativeExhaustion

QuantitativeExhaustion

Really like the looks of Groupon (Online Coupon) Inc., GRPN chart setup. We have a classic inverted head and shoulders with volume and indicators that confirm IH&S pattern. The chart also has two necklines, horizontal and descending. Currently GRPN is stuck in a bearish channel, which broke out a few weeks back to create the right shoulder. This breakout was met...

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After a second look at the big picture and to the smallest details, SPY run might have one more leg. Here is a look at the Elliott Wave after the ascending wedge/triangle and previous two Elliott Waves. You can also take a look at RSI and the VIX indicators and as you can see the RSI is near overbought. The VIX is hugging near a fib line acted with the small...

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Elliott Wave In the early stages of the market recovery we had a typical Elliott Wave pattern with a 5(1)-3(2)-5(3)-3(4)-5(5) sequence. The measure of the total 5 wave sequence totaled 555.63. After the 5 waves you have a correction. This correction, however, is unique. In most cases after 5 waves you would see a correction to the downside. With exception of the...

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As you can see in the chart last time a spread between SPY and Euro of this magnitude was during 2000 Tech Bubble Peak. What you might also notice is the fact that in 2000, Euro bottomed while SPY hit an all-time high. If price action repeats we should see Euro capitulate and higher highs or a flat top for S&P 500 Index / SPY ETF. After SPY-Euro divergence is...

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Inverted Head and Shoulders or also known as Head and Shoulders Bottom The price action forming both Head and Shoulders Top and Head and Shoulders Bottom patterns remains roughly the same, but reversed. The role of volume marks the biggest difference between the two. Generally speaking, volume plays a larger role in bottom formations than top formations. While...

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I dug around some charts this morning and found this gem of a pattern. The bullish Wolfe Wave harmonic pattern. As you can see everything lines up perfectly. Fib lines meet just as they are supposed to, Wave 3 1.27 and Wave 5 1.618 fib. The channel is obviously bearish and all indicators suggest the bearish trend is coming to an end. It is possible however, to...

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Everything on this chart says its time to buy. Although the symmetrical triangle pattern does leave me with a bit of uncertainty. However, I am confident a bullish trend has just started. As you can see recently the Heiken Ashi chart has given us a clue to a trend reversal. What I see is a series of long red candles and on Friday a red hammer within the long...

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FIRE stock sure is on fire. The Descending Wedge was pointed out a few days ago by christopherbrecher. The pattern had a +16 or 57.50 price target. This also true with the new Flag & Pennant pattern that has developed. What should have tipped chartist to go long was the rising MACD with lower lows forming in the chart. Disclosure: On Tuesday I entered a...

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Here is an overall picture of what I believe will happen. I have a cloned (courtesy of @nmike) a descending channel with support/resistance at major confluences. You can also see MACD (12, 26, close, 9, false, true) and Fischer (300) are breaking down. Price could capitulate at any moment. I have soft targets predicted on the chart.

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I don't think Cramer will get his $23 FB. Cramer discussed 4 charts, and he thinks these 4 stocks, which form the acronym FANGs, are the new tech stocks to watch. Facebook (FB) has a ceiling of resistance at $32, and if it pulls back to $23, Cramer would buy, since FB is showing a bullish cup and handle formation. Amazon (AMZN) has roared out 10% from its head...

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Heiken Ashi candlestick filters out some noise in an effort to better capture the trend. For those that use trailing stops and are trend traders, flipping back between the two candlestick charts is quintessential for traders. In the chart I showed how a trader could use trailing stops to profit from the biggest trends. He or she would set stops with long or...

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S&P 500 comparison to VXO (implied volatility of OEX options) -- former VIX -- during the stock market crash of October 1987. What caused the crash of 1987? According to a 2006 Federal Reserve paper, a combination of circumstances made the crash possible. In the five years preceding the crash, stocks were supported by new entrants into the market (pension and...

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Chart has a lot of patterns that are recognizable. One pattern that you might have missed is the Diamond Top pattern. Diamond Top Trading Tips Trading Tactic Explanation Price trend If price makes a quick, nearly vertical rise (A) leading to the diamond and the breakout is downward, expect price to drop back to the price at which it started (B) the rise....

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A lot of people are betting that the EUR/USD pair follow through with a 1.40+ target price. I do believe these traders will be correct, but it looks like we have one more bump in the road before the dollar fetches a 73.00 handle / EUR/USD 1.40+. So I put a chart together to describe the possibility of what is going to happen in the next several months. What I...

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Looking for a pullback and last test of long trending Symmetrical Triangle. Daily RSI readings have gave us insightful hints as to when Gold has been overbought and oversold. Currently we are at midline, however the trend is lower. Compute the height from the highest peak (point A in The Measure Rule figure to the right) to the lowest valley in the pattern (B)...

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I've screened some of the top FX chartist and many are calling AUDUSD a double top pattern. This is incorrect. As you can see the retracement from the bottom @ 1.015 established in October (where the prior trend starts) the first peak in December was 1.585. The next stage is the first trough. The AUDUSD first trough hit 1.03434. The problem exist in the...

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Short Target 1.3153 Possible Throwback (POP!) 1.325 Long Position 1.30915 Long Target 1.3481 Possible Peak 1.356 Harmonic Bat Pattern The harmonic bat pattern was discovered by Scott Carney in 2001. Carney maintains it is one of the most accurate patterns, and requires a smaller stop loss than most other patterns. This is one of the retracement...

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Not too greedy with this one. Playing for .886 Fib line ~ 1.003 Heavy confluence around .886 resistance line. Trading View