SquishTrade

SquishTrade Updated 

ITB is a US Home Construction ETF. Like many US equities, it's been struggling since December 2021. On the daily chart shown, price is experiencing a strong downtrend, as seen by the 21 EMA, 34 EMA and 50 EMA all sloping downwards. When the downtrend pauses and price retraces back to these EMAs, it typically falters and reverses. On the daily chart between...

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NASDAQ:FB is working on a larger-degree 5-wave move downward. Anyone who has been an investor or trader knows that the downtrend has been well-established since early September 2021. The chart above shows a probably 5-wave move downward. Wave 2 appears to be a corrective "expanded flat" pattern or a double zigzag. In EW theory, waves 2 and 4 alternate...

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VIX , the US volatility index, may have just signaled a snapback rally in broader US markets such as SP:SPX , NASDAQ:NDX and TVC:RUT . But the SPX rally will likely be very short lived. Should the rally be shorted? The short answer (no pun intended) is yes. Several reasons support possibility of a brief snapback rally in SPX and NDX in the coming...

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Dip buyers should continue to wait and practice patience especially since markets are a device to transfer money from the patient to the impatient, according to legendary billionaire investor W. Buffett. Technical Analysis of Current Price Action 1. Price remains within a well-established downtrend. Price has been unable to even break the 8-day EMA as...

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Quite a few traders, technical analysts and investment strategists confidently called the 5/20/22 low as the level where the market bottomed a few weeks ago. But many also raised the real possibility that more downside exists especially given persistently high inflation, hawkish FOMC policy, and recession fears. After the major downside breakout of the recent...

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BITSTAMP:BTCUSD has continued to plunge since equity markets and crypto markets began sinking this week. The selloff in crypto markets intensified as the inflation outlook worsened on Friday, June 10, with disturbing CPI inflation data published by the Labor Department's Bureau of Labor Statistics. Using a simple Fibonacci projection, a target for this second...

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After a bloodbath in selling this week with a decline of approximately 20% in the past few days, a short-term bounce may be underway in BITSTAMP:BTCUSD COINBASE:BTCUSD . There are three types of market participants (perhaps more) engaging in driving price higher in the short term. Shorts are probably covering. This includes dealers who are covering...

SquishTrade Updated 

The Nasdaq 100 NASDAQ:NDX could bounce before working its way significantly lower. The charts I've used track Invesco's ETF NASDAQ:QQQ , which tracks the Nasdaq 100. The QQQ is my preferred trading vehicle, including options on this underlying security. In this chart appears a working thesis as to the wave counts starting at the ATH of 408.71 on November 22,...

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While the equity indices have been setting up bearishly especially on the longer-term charts, one bright spot is Healthcare and the SPDR ETF tracking this sector AMEX:XLV . Given the weakness in the indices, bullish positioning should be avoided unless (1) the position is short-term, tactical and position sized, or (2) the position is within a defensive sector...

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AMD is at make-or-break levels of support, as is the NASDAQ:SOX . It may well be that the semiconductors are ready to give it all up for another leg lower. But given the devious nature of the market, the market likely wants to take away all the premium from those who are short and positioning for a downward breakout. So this is a little bit of a risky fade...

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This chart shows sector performance over the last year, 4/2021 to 4/2022. The chart uses a weekly timeframe and compares equal-weighted sectors. Many major indices and ETFs are skewed given heavy weightings in technology, consumer discretionary, and communications mega-cap stocks (mostly the FAANG stocks and MSFT and TSLA). A few other observations that are...

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The downtrend in the S&P 500 continued last week. Charts of ES1! and SPX both show a downtrend line serving as strong resistance since the January 4, 2022 peak in this major index. Key Moving Averages as Resistance The chart above shows ES1! daily price action for the past several months. Recently, the price has been unable to move above the daily 21 EMA ....

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Hockey legend Wayne Gretsky famously said: "Skate to where the puck is going to be, not where it has been." This sometimes applies in investing and trading. Towards what object have investors been skating, figuratively speaking? Currently, financial media, fund managers, and commentators have been emphasizing the opportunities in value over growth for several...

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Above is a chart example of a triangle pattern that has formed in the most well known US index, the S&P 500. The trendlines converge and a breakout appears imminent. Triangles develop as a consolidation and reversal formation where the price range narrows by two converging trendlines. There is usually a series of two or more price moves in both directions that...

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A symmetrical triangle pattern appears on the daily and intraday charts. Generally, price activity within this pattern should contract as price forms lower highs and higher lows. Symmetrical triangle patterns do not suggest a breakout direction, so other technical evidence must be considered. In this case, CSCO is snug against the lower trendline of the pattern....

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Since Feb. 15, 2022, I have been averaging into a bearish position on AMC. It’s been tough to hold, as AMC's price action makes any trade difficult to hold (it whipsaws regularly even while trending higher / lower). It has been rising against the position to $20 (where I added to the position) it began falling further. Supporting the trade is strong technical...

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NVDA is likely heading lower before heading higher. Daily chart 1. NVDA has been failing at the Ichimoku conversion line for many days after cutting through the daily cloud. The cloud has been turning red, which implies near term bearish trend. I acknowledge that support has been holding above Monday, Jan. 24 lows. But looking at Elliott wave structure, it...

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Cybersecurity has been one of the hottest industries in the US stock markets in 2020-2021. Stocks like Crowdstrike (CRWD), Palo Alto Networks (PANW), Zscaler (ZS), Fortinet (FTNT) and SentinelOne (S) have been innovative disruptors reshaping the cybersecurity arena. I have been a fan of many of these outstanding firms, their growth prospects, and technology. ...