Stock Market Commentary 11-15-10
Posted: November 22, 2010 | Author: David John Hall | Filed under: Commentary | Tags: market direction, stock market commentary, trading |
Welcome Retail Traders to the RetailTrader.Net Stock Market and Technical analysis Commentary for the week of November 15, 2010. As always we’re thrilled to bring you the finest in free trading education and resources anywhere on the web and we welcome any and all questions. You can email them to info@retailtrader.net.
Last week we did experience a bit of a pullback. Nothing major but certainly enough to get us looking at the bigger picture and maturity of this current trend. Nothing goes up forever and this trend is one of those things.
Here’s the current chart of the S&P 500.
As you can see, we’ve held the 13 MA just about the entire way up and we’re testing it once again. For me I don’t like to go long in a market that isn’t above the 13 MA and will sometimes pause on buying decisions when price is anywhere near a decision point. Certainly, individual positions are measured individually, but it’s important to stay focused on this bigger picture. Let’s take a closer look:
Here’s a simple method I have of discerning exactly where we are at right NOW. I draw two simple lines. One from the last swing high and one from the most recent. Once again, I’m looking for the market to tell me what to do and how to trade. If we’re trading between those two swing highs all is good. If we start trading below the last swing high I want to halt my buying activity and manage my current positions closely. For my final view, I like to look at the number of stocks trading above their 200 day moving average.
As you can see, we have cracked the prior swing high on the T2108 indicator. Ominous sign? Maybe. I know I certainly pay attention to this indicator and have found it a reliable way to judge market internals as they unfold…NOW.
Until next time…The Market Is Yours!
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Stock Market Commentary 11-15-10
Posted: November 22, 2010 | Author: David John Hall | Filed under: Commentary | Tags: market direction, stock market commentary, trading |Leave a comment »Welcome Retail Traders to the RetailTrader.Net Stock Market and Technical analysis Commentary for the week of November 15, 2010. As always we’re thrilled to bring you the finest in free trading education and resources anywhere on the web and we welcome any and all questions. You can email them to info@retailtrader.net.
Last week we did experience a bit of a pullback. Nothing major but certainly enough to get us looking at the bigger picture and maturity of this current trend. Nothing goes up forever and this trend is one of those things.
Here’s the current chart of the S&P 500.
As you can see, we’ve held the 13 MA just about the entire way up and we’re testing it once again. For me I don’t like to go long in a market that isn’t above the 13 MA and will sometimes pause on buying decisions when price is anywhere near a decision point. Certainly, individual positions are measured individually, but it’s important to stay focused on this bigger picture. Let’s take a closer look:
Here’s a simple method I have of discerning exactly where we are at right NOW. I draw two simple lines. One from the last swing high and one from the most recent. Once again, I’m looking for the market to tell me what to do and how to trade. If we’re trading between those two swing highs all is good. If we start trading below the last swing high I want to halt my buying activity and manage my current positions closely. For my final view, I like to look at the number of stocks trading above their 200 day moving average.
As you can see, we have cracked the prior swing high on the T2108 indicator. Ominous sign? Maybe. I know I certainly pay attention to this indicator and have found it a reliable way to judge market internals as they unfold…NOW.
Until next time…The Market Is Yours!
Like this: