The week started with the continuation of US market’s momentum from Friday March 28th higher close. The final day of the first quarter demonstrated classic mutual/hedge fund window dressing activities and the month ended on a high note. The market got a boost from Chairwoman Yellen on Monday March 31st, when she said that the…
Long Setups Embraer Aircraft (ERJ) is bouncing off 61.8% Fibonacci retracement. 50D SMA is crossing over 200D SMA and MACD is giving a buy signal. Resistance is near 36.62. The stop below recent low of 32.82 and the ABCD pattern measured (AB:CD) target would be near 39.65 giving 2.9 reward-to-risk ratio. Excel Trust Inc. (EXL)…
Bullish Cross Over – 50D MA over 200D MA. Acorda Therapeutics Inc. (ACOR): A close above yesterday’s high of 38.60 would be bullish and a close above the double top of 39.95 on 3/19/14 would be a conservative long setup. Allegiant Travel Co (ALGT) – look for a break above 112.44 for a good setup.…
Since mid-March steel Market Vectors Steel ETF, SLX, is bouncing off the oversold territory. Now it is approaching the resistance from the down trend-line from the double top made in December. The major holdings of the ETF are: Rio Tinto (RIO), Vale (VALE), Arcelor Mittal (MT), Posco (PKX). Nucor (NUE) and Reliance Steel (RS). All are showing similar…
Monday, March 24th 2014, is the day for European Flash PMI. The data for March show that services and manufacturing sectors in France are expanding while contracting in Germany. The French flash Composite Output Index rose to 31-month high of 51.6, up from 47.6 in February and above estimates. Services sector expanded for the first time and…
German Chancellor Angela Merkel has been one of Russian President Vladimir Putin’s toughest adversaries in the current standoff between EU and US on one side and Russia on the other. She has issued some of the harshest warnings and ultimatums to Russia. Russian stock market is tanking but German DAX is poised precariously too. The…
The maiden monetary policy report by Chairwoman Janet Yellen is neither hawkish nor dovish. This was somewhat expected despite hyped-up market expectations. Along with former Chairman Bernanke, Chairwoman was one of the prime architects of the current policy so it should not have been surprising that her prepared remarks were quiet unexciting given that nothing…
We have hand-picked for you seven of the best trade set-ups of 2013 that are bound to be repeated in 2014. Here is one of seven. The best thing about Elliott wave patterns? Easy: They repeat. They repeat on all timeframes, across dozens of markets, all over the world. Once you know what to look…
Late last year, the US market bottomed on November 16, 2012. Since then it has been powering higher defying all odds. During this time – 196 calendar days or 134 trading days – the index has not had a significant pullback. Before last week’s decline, it had only three shallow pullbacks averaging -3.43% and lasting…
Last week started a volatile period for Nikkei 225. As we noted on May 24th, there are two opposing forces acting on the Japanese economy. One is Abenomics and the other is formed by a combination of fundamental reasons, namely –1) Weak closing of S&P 500 following confusing testimony of Chairman Bernanke; 2) Volatility in…
US stock market has run through many resistance levels created over the last decade and is at a very high level. Most of the broad market indices are either at all time high or much higher than the pre-financial-crisis level achieved in 2007-2008. Dow Jones Industrial Averages, S&P 5oo are at all-time highs. So are…
After making a new high since December 2007, Nikkei 225 dropped -1,143 point or -7.3% on Thursday. Friday turned out to be no better with a yo-yo move. Though Nikkei gained +128 points, it was far lower than the 500 point gain that the index had intraday. In two days, the index dropped -6.4% and…
By reaching a low of 78.915 in the last week of January 2013, the Dollar index made a double bottom – it made the first bottom of 78.725 in early September. The index completed the pattern in late February 2013, by breaking above the intermediate high of 81.515 between the two bottoms made in the…
The U.S. Dollar index is a geometrically average of six currencies weighted against the U.S. dollar. It was created by the Federal Reserve in 1973. The index contains six currencies: the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc. The euro replaced now-defunct five European currencies – the Deutsch Mark, the…
EWI senior analyst Jeffrey Kennedy shows you how to identify quality trade setups with supporting technical indicators. “I always will be an Elliottician, but other technical tools have merit and are indeed worthwhile: they allow me to build a case, build a more confident reason for making a forecast and for taking a trade; making…