My name is John Lansing, and I target “sudden profits” at my Trending123 trading service – that is, I use technical analysis to find stocks I can get in and out of quickly for a continual stream of winning trades that all combine to build your wealth relentlessly over time.
I’m a passionate believer in technical analysis – after all, I went from nothing to rich, by trading stocks on technical signals.
Let me show you how. I’d like to share my “trade secrets” with you absolutely FREE in my new online seminar, Patterns for Profits: Putting Technical Analysis to Work for You.
What’s more, the online seminar is coupled with a comprehensive written report, 3 Easy Steps to Trading Stocks for Sudden Profits – a powerful one-two punch that gives you an immediate advantage over most investors.
View this seminar at your own convenience – it’s ready anytime you are. And read your companion report at your leisure..........Seminar
Archived Updates For The Month of March 2007
Click Image To Watch The Flash Video Chart Pattern Screener and Education
SP500-Emini-Update For anyone who was long stocks, the dramatic sell-off that began Tuesday must have come as a shock. There were lots of hints that the market was near a top, but the size and speed of the correction took many investors by surprise. The likelihood of continuing volatility will only increase anxiety in the coming weeks.
Trading-SP500-Emini-Futures Last week we had a quadruple witching option expiration week. Both the Dow Jones Industrial Average and S&P 500 posted their lowest weekly closes since the week of November 13, 2006. While the long-term uptrend remains bullish, the medium- term has been threatened by the current price moves. The S&P 500 cash had 97.50 points down, only bounced up 46 points, and still couldn’t close above its breakeven point at 1412.77. This indicates we may see more downside movement in coming weeks.
Emini-Trading-SP500-With-Nat After last Wednesday’s rally all three major markets went sideways for the next two days. On the positive side, all three markets did hold their gain in to the end of the week. However the volume didn’t follow through in the final two days. All three are short–term overbought and trading in daily resistance zones.
Exciting Times in the Stock Market
Existing Portfolio Stocks That Have Buying Pressure on Breakouts
ADM, APA, PSYS, OVTI, PDC, GROW, EOG, GROW, and SU.
In these Updates I want to review and discuss some existing portfolio stocks that I am the most excited about right now and going forward. In this update I will review the following portfolio stocks: ADM, APA, PSYS, OVTI, PDC, EOG. One thing that you may have noticed is that energy stocks and commodity stocks have been on fire this month! In fact, energy stocks were the best performers this past week. Before I review our portfolio stocks I want to discuss buying pressure and what it means to our stocks. In fact, I want you to be aware that our portfolio stocks have outperformed the broader market indexes this year by leaps and bounds. They even held up remarkably well during the recent market pullback. If you ask me that is some "darn good stock market picking."!
What is buying Pressure?
Buying Pressure = This is a simple definition. Buying pressure can basically be defined as increasingly higher and higher demand for a particular stock's shares. This demand for shares exceeds the supply and naturally causes the price to rise. Buying pressure can be seen as higher highs in price and higher lows in price as a stock trends upwards and gains bullish momentum. Buying pressure can also be seen in the stocks strength as it reaches major support levels and resistance levels. Buying pressure can come into a stock at support levels which prevents any further decline. As traders say "what fails to breakdown goes up" and eventually breaks out. The strength or weakness of a stock determines how much buying or selling interest will be required to break support and resistance areas. In addition, when there is increasing volume traded at any level, the stronger the support and resistance levels will be. This is also a sign of buying pressure coming in to a stock. You can see buying pressure come into a stock when it starts to close near the Highs of Day (HOD) for a consecutive number of days (typically 3 days). This indicates that the "Bulls are driving up the price." If the overall market conditions remain favorable, a stock with confirmed consecutive closes near the High of Day will be viewed as bullish and will be an excellent potential long. Increasing volume is typically triggered by institutional buying. This can be seen in large block trades of lets say 50,000 shares or higher or many small block trades. In addition, the technical indicators will also confirm buying pressure with positive divergence and a move up along with price. Buying pressure can also come into a stock when it is heavily shorted. When there are too many shorts in a specific stock it can cause a stock to reverse upwards or to continue to rally upwards as stop losses on short positions are triggered by relatively light buying pressure. Finally increased market volatility can also add fuel to the fire when it comes to buying pressure.
In terms of using technical indicators you must first learn to recognize that there are two types of market environments. These environments are range bound markets and trending markets. When you know what type of market condition your stocks are in then you can use the appropriate technical indicators and oscillators for that type of trading environment. Just as there are two types of market environments there are also two basic types of technical indicators. These are oscillators and indicators. Oscillators signal potential reversal points and buying pressure. Oscillators, such as stochastics, are great to use during range bound market environments. Indicators in contrast, spot continuation trends and flag increasing momentum which also points out buying pressure. Indicators, such as MACD and ADX/DMI, are best used during trending environments. A stock is bullish and trending upwards when it is breaking out above previous highs or breaking down below previous lows. This trend can be seen in the price and the MACD and ADX/DMI.
Archer Daniels Midland CO. - (ADM )- Ethanol - Bull Flagging
ADM is a current portfolio stock and it is an ethanol play. This is my top Ethanol play. The chart illustrates that ADM has spent the last 5 months in a wave 3 to wave 4 ABC corrective channel. Remember corrections always occur against the primary trend. The correction is not over until it resumes the primary up trend by breaking the downtrend channel at $34.50. As you can see, ADM has taken out that downtrend line and retested it this past week to form a bull flag. This breakout is exciting! Looking at the chart you can see that ADM bottomed in January, and since then has been placing higher highs and higher lows in a bullish fashion ever since then. In addition, you can see that the MACD has bottomed and is showing positive divergence as the price rises and gains momentum and is now trading above 0. That is a classic sign of increased buying pressure. That is exciting! In fact, ADM held up very well during the recent decline in the broader market indexes which is another bullish sign and a sign of increased buying pressure as well. That is also exciting because the bulls have held up the price! The buy alert for ADM was triggered at $35.52. It is an investor trade, meaning that it is meant to be held for 6 to 12 months or until the revised price target is reached at $50.00. That would be a gain of 15 points. Love this stock! BULLISH.
Psychiatric Solutions, Inc. - (PSYS) - Bull Flagging
As you can see by looking at the chart, PSYS has completed it's recent pullback off of the highs and is resuming it's original upward trend. I have been suggesting this stock over and over again because the chart pattern is great. In addition, indicators and are bullish and pointing towards a continued bullish trend and continued bullish momentum. I want to reiterate a price target of $50.00 for this swing trade. I am excited about PSYS and it is going higher in the short term. BULLISH
Apache Corp. - (APA) - Energy Sector
What is exciting about APA right now and in the short term? ( We have been APA for a while now - but it is looking really good now!). I want new subscribers to know that buying pressure is coming into APA right now. I am excited about APA because it has taken out the downtrend line and buying pressure is increasing in the stock because of this breakout. This is very exciting! Furthermore, you can see this increase in buying pressure in the positive divergence that is present in the MACD. The ADX is bullish and has been gaining momentum since the lows in October of '06. Since the chart is so bullish and now that the breakout has occurred I am have revised the price target on APA. As you can see, it is already trading close to my original price target of $72.00. I believe further gains of $10.00 to $15.00 are possible for APA. This stock is going to move up fast and furiously now, and that bullish trending momentum is exciting! Buy the dips! BULLISH
OmniVision Technologies, Inc. -(OVTI) - Breaks the Down Trend Line ! Exciting!
Now you may be thinking what is going on with OVTI? You may think what can I possibly say about this stock? Is there anything good to say about this stock ? I know that you think that this stock has been a Stink Bomb! But you know what you are wrong! Do you want to know why? OVTI has not been a stink bomb, we just didn't have a good entry. In fact OVTI has just taken longer to break out above the down trend line than I thought it originally would. It has held it's lows this year and the MACD is showing positive divergence and the buying momentum was huge on the breakout of the DTL. That is a classic sign of a reversal and an increase in buying pressure . That is exciting! The ADX is bullish and has been gaining momentum! I just want you to be aware that there is a big difference between a poorly timed entry and a stock taking longer to breakout. The stock has been acting well ever since our buy entry. I want you and all new subscribers to buy this stock when it back tests the down trend line. OVTI is fanfrickentastic! BULLISH!
Pioneer Drilling Co. -(PDC) - Breaks the Down Trend Line ! Now that is Exciting!
What is significant and exciting about PDC? You already know how bullish I am on the energy sector. However I am really bullish on PDC now. There are not many oil / energy stocks that I think are going to double this year with the exception of PDC. PDC is now resuming a bullish impulse wave 3 up trend. As you may know according to Elliot Wave impulse wave 3 is the fastest moving impulse up wave. Now PDC is going to double from here by the time it completes it's final 5th impulse wave up. I want to stress that it doesn't matter if you didn't get in at the bottom once you book gains of 100%. Potential gains of 100% are very exciting! This stock is fixing to explode due to the pent up buying pressure that is coming into PDC right now. It has held it's lows this year and the MACD is showing positive divergence and the buying momentum has come into PDC on the breakout of the DTL. That is a classic sign of a reversal and an increase in buying pressure . That is exciting! The ADX is also bullish and has been gaining momentum! PDC has just completed a backtest to the broken DTL and is forming a bull flag. Now is the time to buy PDC for potential gains of 100% going forward. What more can I say? Except this... If you like to make $$ buy this stock now! Don't delay or you'll have to pay! And by that I mean higher prices at entry! This stock is BULLISH!
EOG Resources, Inc. - (EOG) - Energy Sector - Triple Top Breakout
EOG is a lower risk Oil play. EOG also presents itself as a value play with a P/E of 11.47. What do I love about the chart of EOG? What is exciting about EOG right now? Well not only is it in a really bullish pattern (not shown here) but it has just had a massive triple top breakout above $69.00. This means that EOG has resumed it's bullish impulse 5th wave up move and will now be trending upwards. Now that is exciting! The MACD is showing massive bullish divergence and the ADX/DMI has had a massive spike upwards. EOG is the front runner of all Oil stocks. This stock is a fast mover. There will be days when EOG is going up so fast that you will chase this stock. Now is the perfect time to get in if you are not in EOG. I have reiterated a buy on EOG so many times that I have updated EOG the most out of all the stocks in the Trending123.com portfolio this year alone! That is sign right there that tells you how excited I am about EOG! The buy alert for EOG was triggered at $70.20. It is an investor trade, meaning that it is meant to be held for 6 to 12 months or until price target is reached at $95.00. That would be a gain of 25 points. BULLISH
US Global Investors Inc. - (GROW) - Bullish Continuation Wedge Breakout- Financial
Boy oh boy! Last week institutions and traders were gobbling up shares of GROW like it was a Thanksgiving feast. They couldn't get enough of this shares of this stock! The momentum and buying pressure on the breakout was massive. Just MASSIVE! Now that is exciting! The daily chart of GROW illustrates that it is in a Bullish Continuation Falling Wedge pattern. This pattern forms in an uptrend, therefore it is classified as a continuation pattern. The wedge represents a pause before it continues on its uptrend. You can see that GROW never overlapped it's previous wave. The MACD is showing massive bullish divergence at each low and the ADX/DMI has had a massive spike upwards. GROW had a massive gain of 30% this week due to the breakout of the wedge. Now that is exciting! GROW is BULLISH!
Sunocor Energy, Inc - (SU) - Energy Sector - Breaks the Down Trend Line ! Now that is Exciting!
What do I love about the chart of SU? What is exciting about SU right now? Well not only is it in a really bullish pattern (not shown here,) but it has just had a massive breakout of the downtrend line above $70.00. This means that SU has resumed it's bullish impulse 5th wave up move and will now be trending upwards. Now that is exciting! The MACD is showing massive bullish divergence and will soon be trading above 0. The ADX/DMI has had a spike upwards. Now is the perfect time to get into SU if you are not in it yet. I am reiterating a buy on SU here because due to this statistic, which is that 90% of all stocks that cross $88.00 go to $100. BUY SU! BUY SU! BUY SU! Buying Pressure is coming into SU and that is EXCITING!
To conclude this update, all of these stocks are experiencing massive buying pressure on their respective breakouts. If you are not yet in them, now is the time to get in, or wait for the dips and buy the dips. I also like these stocks because they have outperformed the market this year. They held up really well during the broader market pullback which shows strength. These stocks are strong stocks and are gaining bullish momentum. The moves in these stocks are exciting and they will continue to be exciting going forward! The Bottom line is that these stocks are BULLISH!
Trading Our Plan Trending123.com Video Update - 3/30/07 - Encouragement to follow the Trending123.com Trading Plan! In this update I want to encourage everyone to adhere to the Trending123.com trading plan. I suggest stocks at specific entries and exits for a reason. That is because I want you to make money! Following the Trending123.com trading plan will teach you how to make consistent profits. I will force you to make money! Strict adherence to a Trading Plan is an important and vital aspect of a profitable trading plans. Studies have shown that consistently and highly successful traders have a trading plan in place that gives them an edge in the market. So should you! This reason I am encouraging everyone to stick to their trading plan especially now, is because the RST pattern is out to get you! It is much too easy in this volatile market to throw your trading plan right out the window. This is because the Nasdaq 100 is in the chaotic RST pattern. It is the nature of this pattern to trick and cheat us out of making profitable trades. Don't let that RST cheat you out of massive gains! Don't do it! Just remember that the RST is working the way it is supposed to on sharp down days. Bull markets try to throw as many people off of the Money Train as they can. Don't let it be you! Today was a volatile day. Today NQ futures dipped to the uptrend line, but it is still trading in the bullish uptrending channel. I also want to remind you to stick to the trading plan on CEGE. I am not changing price target on CEGE because the plan is to hold CEGE until price target, which is in the $6.00's That is the plan, and that is what the chart is saying! Remember successful traders adhere to their plans! We are in great stocks! Stick to and trade your plan!
Ride The Bull Trade The Bear Trending123.com Video Update - 3/26/07 - In Bullish Markets, Traders Ride The Bull! They Buy and Hold until Profit Targets! If you thought today was a crazy day in the market, you are not alone! The Market was just nuts today! This is because both the Nasdaq and NQ futures are in the crazy RST pattern (Reverse symmetrical Triangle pattern.) I like to call the RST the Nut Hut pattern. This is because it makes traders and markets volatile act crazy. The RST pattern is characterized by big up days followed by big down days. This surge in volatility creates chaos in the broader markets. This consequently affects the minds of traders and investors alike. They don't know what to do! Traders are so confused they end up buying the highs and selling the lows! This is because this is because the RST pattern defies logic. Everything that you think you know about trading the market will not apply to this pattern. It is impossible to trade this pattern. That is why I am here to guide you and help you find the right stocks to trade. The best way to trade this type of market environment is to identify and buy the stocks that trade independently of the market indexes and that look to explode to the upside. CEGE is a good example, it trades independently of the market. CEGE is up 31% after hours today! That is why I have been so focused on commodity stocks. The entire Commodity Sector is hot hot hot! These sectors are hot: Oils, Oil and Gas Services, Oil well services and base metals, Iron and steel, precious metals, and basic materials are where the big money is flowing right now. Advancing issues our outpacing declining issues in the broader market. The market is BULLISH! So hold on to your positions! Buy your stocks on down days and don't chase stocks on up days! In Bullish Markets you ride the Bull and hold on to your stocks like you are on that bucking bronco until the bell rings for you to get off and take profits. Ka Ching!
Portfolio Stock Review Trending123.com Trending123.com Video Update - 3/29/07 -Trending123.com Portfolio Noon Update and Review Today the Dow Jones is doing the best, followed by the S&P 500 and then the Nasdaq 100. Today we gapped up big! It is good to be long and strong in this market. If you are already in a bunch of stocks you are a happy camper. High beta stocks and energy stocks are moving on up In this update I want to do a quick review of some of our portfolio stocks. A specific set of stocks are being heavily accumulated by institutions. This is causing them to break out and or make new 2007 highs. The following stocks have been flagged by heavy accumulation and consistent upwards buying pressure: SU, ADM, CEGE, and GROW. The following stocks are bull flagging: ID, EOG, GSS, MVIS, WFT, ISRG, AL, CENX, SJR, & PSYS. NCX is a chemical stock and is currently in a longer pull back channel. Remember NCX is an investor trade, so be patient with it. If you are new, or are already in existing portfolio stocks, always make sure to check the trading time frame assigned to each stock in the Trenduing123.com portfolio table. This can be found on the member's homepage, but you need to scroll down to the bottom of the page. I assign a specific trading time frame for each stock based on what the chart's cumulative technical analysis is telling me. I define the trading time frame as follows: short term trade, swing trade, investor trade. All commodity related stocks continue to shine and outperform the broader market. Our stocks continue to move higher and higher. Some of our stocks are moving faster than others, (not every stock is like GROW) but they are moving on up nonetheless. Tomorrow, is the last day of the month. Which way is the market going to go? We don't know. Since we are in stocks that trade independently of the indexes, and on their own merits, end of month window dressing or smashing won't affect us.
Rally Thursday Stocks March 2007 -Trending123.com Pre-Market Update -Time to Rally Thursday
Good Morning Trending 123er's! This is your pre-market update. The European and Asian markets rallied strongly overnight. The CAC, DAX, FTSE, HANGSENG etc.. are in rally mode. It appears that the US markets will follow suit today. Investors around the world have chosen to ignore what the Fed Chairman, Ben Bernanke, said yesterday and have decided to have a rally Thursday instead. I want to alert you to the fact that there is a lot of bullish Merger and Acquisition activity going on in the US markets which is helping the market rally along. Furthermore, the following Trending123.com portfolio stocks look juicy today and are set to rise today: APA, CENX, CRS, GROW,GSS, MVIS, NETL. These look to be the best plays for today because all the major indices have gone into a bullish trend reversal. What is unique about the NQ futures chart is this. We typically rally up and go bullish, let's say after a massive rally, we will then have a counter trend pullback. What happened this time, which is I why don't wave 3 is in yet, is that we rallied up and had our counter trend pullback and then went bullish. This means that overbought levels have already subsided. NQ futures are currently bull flagging and are indicating a market melt up for today. This is forget about the Fed Wednesday, because it is Time to Rally Thursday instead.
All Major Index Charts Go Bullish Trending123.com Video Update - 3/28/07 -Trending123.com Closing Bell Update and Review Good Afternoon Trending 123er's! In after hours trading Crude Oil is surging, and it is up $5.00. In this update I want to cover Trending123.com portfolio stocks that are becoming increasingly bullish. The first chart that I want to cover is SU. The runaway gaps that you see on the chart of SU is indicative on increased buying pressure. You can also see this momentum build up in the bullish positive divergence in the MACD. SU is my number 1 oil play. I am reiterating again here that SU is looking really good. The buying pressure just keeps building and the price keeps going higher. If you have the time, I would really like you to review previous updates. Now, as you know, I have also been updating stocks on telecharts. In the telecharts updates I have been sorting stocks by "moneyStream", and "one week surge in money flow" to alert us to which Trending123.com portfolio stocks are getting ready to explode to the upside with increased buying momentum. Some of the stocks experiencing buying pressure this week are EOG, GROW, CEGE and GSS. Another stock that I want to discuss is NETL, because it too is experiencing buying pressure. NETL has recently been rallying up. Today, however, it gapped down to the $26's. What happened then? Well, massive volume came at the lows today in order to support the stock. This type of action is indicative of increased interest in the stock, because this means that people are eying NETL at support levels and are pouncing on it to buy at support levels. This watching and waiting to buy in is indicative of increased interest in the stock. Are you going to be a pouncer or panicker? Please review updates!
Portfolio Stock Update Trending123.com Video Update - 3/28/07 - Trending123.com Portfolio Stock Update and Review - ADM, NETL, SU and ARNA In this update I want to discuss 4 portfolio stocks that are looking really juicy. The first stock that I want to talk about is ADM. We have held ADM in The Trending123.com portfolio for a while now. ADM is making multi months highs today. It is hitting levels not seen since October of last year. You can see that ADM broke out of a nice bull flag today and the MACD is moving up along with price. ADM is BULLISH. I also want to discuss NETL. I just suggested NETL as a buy today. I want subscribers to get into NETL now because the risk reward ratio on this trade is excellent. If you get in at these levels the downside risk on NETL is only $2.00 versus upside reward of $30.00 or $40.00. Trades with this type of risk reward ratio are worthwhile trades to get into! Furthermore the weekly NETL chart is looking increasing bullish and showing buying pressure. Now you know that I have been updating SU a ton. Here I go again! The daily chart of SU is also looking bullish. It has broken the downtrend line and has been on fire ever since. It just keeps gapping up and running a way. Target is still $100.00. I also want to talk about ARNA for those that are already in it. I still believe that ARNA is currently in an impulse wave 3 to impulse wave 4 counter trend pullback. I still maintain a long term price target above $20.00. To conclude, our portfolio is on track and our stocks are doing what they are supposed to! The market is a rocking!
Market Update Trading Room NETL Trending123.com Video Update - 3/28/07 - Trending123.com Noon Update - NQ FUTURES and NETL Good Afternoon Trending 123er's! I already updated some Trending123.com portfolio stocks in the pre- market update. I also issued a buy alert on NETL today. NQ Futures remain in the RST pattern and are trading in the bullish uptrending channel. The chart illustrates that NQ futures have just completed a sub wave 3 to wave 4 pull back to the uptrend line. NQ is now ready to resume it's uptrend and stochastics are bull flagging. The following portfolio stocks are on the move: ADM, ANDE, ARNA, DAKT, GROW, and GSS, PEIX, SU and WFT. If you have questions or are anxious regarding portfolio stocks please come into the trading room so we can alleviate any pressure or anxiety you may be feeling.
15 Portfolio Stock Updates Trending123.com Video Update - 3/27/07 - Trending123.com Pre-Market Update - ID, DAKT, MVIS, ANDE, PRKR, CENX, CRS, AL, LYO, PSYS, NETL, ASFI, APA, PDC, SJR, GSS, EOG Good Morning, this is the pre-market update. In this update will discuss how buying pressure and sector performance/ outperformance determine which stocks I select as good buy candidates for the Trending123.com portfolio. The first stock that I want to look at today is ID. If you look at the 2 charts of ID you will see the chart of the stock ID above and the sector chart below it. I will present all the stocks like this today. You can see that ID is on the verge of breaking out and is outperforming it's sector chart below. This illustrates that ID is outperforming it's sector. In contrast, DAKT is under performing it's sector. MVIS is currently at resistance near $4.00. Once that resistance is taken out, MVIS will explode upwards. MVIS is outperforming it's sector. I am very happy with ANDE's performance. It has taken out resistance at $43.00 and buying pressure is coming into the stock now that resistance has been cleared. PRKR, we are not in this stock yet, but I am watching it. I like the way it is looking because it is outperforming it's sector by leaps and bounds. I am waiting for a wave 4 correction to get into PRKR because of this sector outperformance. CENX, CRS and AL are following their sector charts and buying pressure is coming into each stock. What is great about LYO? Everything! LYO is currently in a slim jim and it is getting ready to break out on bullish divergence. Chemicals are hot hot hot! PSYS is in the healthcare services sector. PSYS is bull flagging as is the sector chart. NETL is outperforming it's sector, and buying pressure is building in it. I am still waiting on a pullback to get in. The same holds true for ASFI. APA has broken the down trend line and it is going up on bullish divergence in the MACD and buying pressure is coming in to the stock. PDC is on the verge of a missive breakout, it is going up on bullish divergence in the MACD and buying pressure is coming in to the stock. SJR is in a slim jim and it is bullish. GSS was a good day to buy the dip. EOG is ready to breakout and it looks very bullish. Commodities are hot hot hot! Go SU!
ICE NYX MOMENTUM STOCKS Trending123.com Video Update - 3/27/07 - Trending123.com Momentum Stocks Update - ICE and NYX NQ Futures remain in the continuation RST pattern and are trading in a bullish uptrending channel. The NQ futures chart illustrates that it is currently completing a sub wave 3 to wave 4 pull back to the uptrend line of the channel. You can see that the MACD is oversold and bottoming and that NQ is now getting ready to resume it's bullish 5th wave uptrend towards 1900. The last time NQ was in a bullish continuation RST pattern was when the London Train bombing occurred. The pattern caught everyone off guard and the market rallied rather than dropped. The same thing is happening now. Confounded RST! Now is the time to get into new setups. There are some really juicy short term trade setups right now. ICE is providing a good short term trade today. ICE has some really good bullish divergence presenting it self in the MACD. R1 entry is at $120.68 and or R2 is 118.43. I am looking for a move up to the 50% retracement levels around $145.00. The next short term trade is NYX. This stock has been on fire and it has been front running the sector. I think that it may go to $100.00. It is showing some nice bullish divergence in the MACD. To conclude, every commodity under the sun is on fire today, as it has been for a while now. Commodities are hot hot hot! Let's make some money!
Hedge Funds Blowing Up Trending123.com Video Update - 3/27/07 - Trending123.com Closing Bell Update - OIH and Commodities Flying in After Hours The market is currently closed. However, I want to alert you to the fact that commodities are flying up in after hours trading. The OIH is currently at $149.00, Crude Oil is currently trading above $68.00 a barrel, Natural Gas has jumped up over 4%, and the XRB is up 446 ticks and is trading at new 2007 highs. This surge in commodity prices is most likely causing some hedge fund to blow up. Crude Oil went from $63.00 at the close up to as high as $68.00. This is indicative a short squeeze! The commodities are just flying we should have a good day tomorrow.
NASDAQ 100 NQ Futures Flag Trending123.com Video Update - 3/27/07 - Trending123.com Closing Bell Update - NQ Futures NQ Futures remain in the continuation RST pattern. You can see that the MACD is oversold and bottoming and that NQ is now getting ready to resume it's bullish 5th wave uptrend towards 1900. Confounded RST! NQ futures also continue to trade in the bullish uptrending channel since wave E was placed. NQ futures chart illustrates that it is currently completing a sub wave 3 to wave 4 pull back to the uptrend line of the channel which is creating a bull flag pattern. The broader market indexes are following NQ.Commodities are still the hot sector to be in right now.
New Features Site Trending123.com Video Update - 3/27/07 - Trending123.com - New Trading Room Upgrade Today I want to introduce you to the new chat room that Trending123.com will be using from now on. This trading room is an upgrade from the previous one. I am really excited about it! The new Trading room is very interactive. Everyone will be able to be on the microphone, not just Bill and I, which will be great because we will all be able to converse back and forth. The room will be like real time TV. You will be able to see me, hear me and talk to me. It will like being in the same room with me and you will be able to see what I see. I will also be able to post charts in real time for you. This will be great for new trade set-ups as well as if anyone has any questions about a stock. You will also be able to see all the Trending123.com portfolio stocks and futures in real time! The new trading room is a stand alone, but you can also put it in Java. There are also lots of new icons to use. But most importantly you able to see me and the trades that are being posted in the chat room in live real time. We will also be having educational seminars in the room as well. I also want to let you know that we are in the process of upgrading the Trending123.com website as well. It is going to be much more user friendly and interactive as well. I am really excited about these new developments and upgrades to our service!
Chat Room Features Trending123.com Video Update - 3/27/07 - Trending123.com - New Trading Room Features In this update, I will go through some of the benefits that the new Trending123.com Trading room offers us. One of great features that is available, is a pop -up window that will let me show you what I have on my desktop. This will let me show you stock charts in real time. This way I will be able to explain to you what I am seeing during the trading day so that you can see the same thing too. So if I see something in real time that I think you should see too I will pull up a chart. The new Trading room will be a virtual trading room. The new Trading Room has the most sophisticated technology available for us to take advantage of. So, make sure you come to the Trading Room and check it out!
Chat Room Setup Trending123.com Video Update - 3/27/07 - Trending123.com - Instructions - How to set up your computer to Access the New Trading Room In this update, I tell give you instructions on how to set up your computer in order to access the New Trading Room.
New Buy Alerts Trending123.com Video Update - 3/27/07 - Trending123.com Pre-Market Update - Two New buy Alerts: ID and PDC Good Morning, this is the pre-market update. I am issuing 2 new buy alerts today. They are buy alerts for ID and PDC. These trades should be executed during the first half hour of the market open this morning. Allocate 5% to each position. The entry price for ID and PDC should be as close as possible to yesterday's closing price as possible. ID is a medium risk swing trade in the Protection Services Sector. Try to buy as close to $16.60 as you can because ID is getting ready to take out the down trend line. ID is in a bullish triple top ascending triangle pattern within a larger rectangle / Slim Jim continuation pattern. The buying pressure will be coming into ID shortly. Price target is at $24.00. I am also reiterating a buy on PDC today. PDC is a medium risk investor trade in the Oil / Energy Sector. PDC has taken out the down trend line on bullish positive divergence in the MACD and is now beginning to go parabolic. Price target is at $27.00. That would be a gain of 100% from this level. These stocks are looking great for entry today so don't delay.
New Plays Buying Pressure Trending123.com Video Update - 3/26/07 - Trending123.com- 5 to 6 New Plays with Buying Pressure Coming in - High Beta - GROW, POOL, ID, PRKR, & CEGE In this update I want to talk about 6 new portfolio plays that are experiencing buying pressure. GROW is a high beta momentum stock. It is very volatile. It can be brutal to both the shorts and longs if they don't know how to play it correctly. The chart of GROW is a perfect example of what buying pressure looks like on a chart. The chart illustrates that GROW has broken out of a corrective wave 3 to wave 4 bullish continuation wedge pattern and is now in a parabolic impulse wave 5 up move. You can see that as soon as GROW broke out of the wedge that the MACD and ADX went vertical / parabolic up. That is a sign of short covering and immediate buying pressure coming into a stock. The stock is now running and running up. Those are the kind of high beta momentum plays that I want us to be in. I want us to be in the kind of plays that make us fast and furious amounts of money. POOL is another stock that is going to experience massive buying pressure. You can tell that POOL is about to go parabolic up because of the positive divergence that developed in the MACD as the stock made it's final low. You can also see that right after the low was completed it had a nice big candle stick up off of the lows. It will now back test the broken down trend line and form a nice bull flag. ID is another good high beta momentum stock play about to go parabolic up because of the positive divergence that has developed in the MACD. PRKR, CEGE, MVIS, and AXR are additional high beta momentum stocks that are experiencing buying pressure and are set for some massive money making moves! ( NOTE: Do not flip flop out of existing stocks that you are already in to get into these. Stay in the ones you have until target is reached If you have extra money then you can add these to your portfolio. If your are new, get into the plays mentioned in this update.)
Stock Sector Wrap Up March Trending123.com Video Update - 3/26/07 - Trending123.com March Stock Sector Wrap Up In this update I will discuss how the various sectors and how the Trending123.com portfolio stocks have performed during the month of March. As you know, I have been focused on the commodity sector for a while now. The commodities sector has been the strongest sector this month. (Steel, Copper, Base metals, precious metals, Energy , Oil, Natural Gas etc.) It has outperformed all other sectors by leaps and bounds. Commodity based stocks have experienced incredible buying pressure lately. That is why the Trending123.com portfolio is overweight commodity based stocks. I think this sector is where we will continue to make our fast money. The strength lies in this sector because the printing press is in overdrive and inflation is on the rise. The sub-prime issues have also caused the commodities to rise. This is where the smart money will be in the short and intermediate term. The utilities sector has been the second strongest sector this month and it is breaking out to new highs. This is also the most interest rate sensitive sector. Small Caps and Mid Caps have also been performing well. Chemicals are hot hot hot.- I like LYO and NCX, and they are experiencing buying pressure. Now let's talk about the Trending123.com portfolio stocks. These have been great performers: AXR, CEGE, MVIS, GROW, ANDE, WFT, and PSYS. These stocks are trading independently of the market and are going up on their own merits. Those are the types of stocks we want to be in. Everyone should be making money right now, because our Trending123.com portfolio stocks are working and are making us money! If you are not making money on our stocks picks it is because you are doing something wrong. If this is the case with you, please go to the message board and post for help, or contact any of the Trending123.com staff.
Buying Pressure Full Steam Ahead Trending123.com Video Update - 3/26/07 - Trending123.com New Buys and Stocks with Excessive Buying Pressure -ANDE,AXR,MVIS,CEGE In this update I will review today's buy alerts and highlight stocks that are experiencing excessive buying pressure. ANDE is experiencing excessive buying pressure. It has taken out strong resistance at $43.00 and is now in a measured move up to the $50.00 area. Today I issued a buy alerts on AXR, MVIS, and CEGE. AXR has taken out the downtrend line as well as the prior day's highs and lows. Stochastics are oversold and turning up. AXR is looking bullish! I issued a buy alert on MVIS this morning at $3.43. It is currently up around 7.5% today so far with a price target set around $6.00 in the intermediate term. Like MVIS, CEGE is another instant gratification type of trade. CEGE is in a fractal falling wedge reversal pattern. On the daily chart CEGE is on the verge of taking out the long term downtrend line on positive divergence in the MACD. Existing portfolio plays such as GSS and, OVTI are rocking! We are in a really juicy market environment so it would behoove you to take advantage of this bullish move!
Market MidDay Update Trending123.com Video Update - 3/26/07 - Trending123.com Mid Day Market Update Good morning. NQ futures still remain in the RST and continues to trade in the bullish uptrending channel. ( However, it is a sloppy channel.) It is very difficult to trade this type of chaotic pattern. That is why I prefer to trade stocks rather than indexes. Indexes are just too difficult to trade. I like to trade what is easy. I prefer to trade stocks that are trading independently of the broader market and that are trading on their own patterns and merits. NQ futures just had the biggest rally in 4 years so it is currently in a pullback to the uptrend channel. In addition, Crude Oil is at new 2007 highs and so is the XRB. Our stocks are doing well and are all up. Nothing has changed and NQ continues to zig zag up the channel.
Setting Up Stock Platforms Trending123.com Video Update - 3/26/07 - Trending123.com Setting Up Stock Trading Platforms In this update I will instruct you on how to set up your trading platform in a manner that will assist you in watching the market.
Portfolio Stocks Buying Pressure Trending123.com Video Update - 3/25/07 - Trending123.com Stocks experiencing Excessive Buying Pressure In this update I want to review and discuss some existing portfolio stocks that I am the most excited about right now and going forward. In this update I will review the following portfolio stocks: ADM, APA, PSYS, OVTI, PDC, EOG. One thing that you may have noticed is that energy stocks and commodity stocks have been on fire this month! In fact, energy stocks were the best performers this past week. Before I review our portfolio stocks I want to discuss buying pressure and what it means to our stocks. In fact, I want you to be aware that our portfolio stocks have outperformed the broader market indexes this year by leaps and bounds. They even held up remarkably well during the recent market pullback. If you ask me that is some "darn good stock market picking."!
Sector Money Flow --Weekend Video Update 3/25/07 In this Update I want to review and discuss the sectors that are the strongest and that are outperforming the broader market indexes. The following sectors are experiencing buying pressure/ money flow, momentum and strength: All Commodities & Utilities which are interest rate sensitive sectors. Steel Producers, Oil / Energy,Natural Gas, Gasoline, Precious Metals, Overseas markets and Emerging markets are also strong and resuming their bullish momentum. This is where the fast money is flowing!
RST NASDAQ 100 Futures Weekend Video Update 3/25/07 - NQ 100 Futures on the Daily is in Reverse Symmetrical Triangle This Update will cover the Nasdaq 100 futures. I have been following the NQ futures for general market guidance and direction. I have mentioned in previous updates that the NQ is in an RST fractal pattern on all time frames. It remains in an ABCDE RST/. The NQ has placed it's lows at E where a reversal occurred. NQ is now trading in an uptrending channel. It has also taken out the 72% and 82% retracement level, this negates the prior move down and makes it corrective. Consequently NQ is now on it's next leg up towards 19000. NQ is also going up on bullish divergence. The NQ is leading the market forward. Remember in Bull markets futures lead the market higher and in bear markets cash leads the markets lower
Higher Oil Prices Oil Services Holders ETF (OIH)- Daily Chart- Energy Sector - Optionable
The weekly chart of the OIH is looking very bullish. It has just taken out the secondary downtrend line that it formed from it's correction off of the highs that it placed in May of 2006. The OIH is now trading at $147.00. We do not own the OIH, but I do watch it to monitor the sector's strength since we are overweight the energy sector. The energy sector, Crude Oil and Unleaded Gasoline are at 2007 highs and they have been on Fire! Commodities are the place to be! The commodities and commodity stocks are outperforming the broader market indexes. This is the year for commodities and their stocks! Finally, energy stocks still have to catch up to the price of Oil. Therefore, they will be moving on up shortly. Be prepared for nice gains ahead.
Oil Hits New 2007 Year Highs Oil stocks In this update I just want to alert you to the fact that Crude Oil is making new 2007 highs at 62.50. This is having a positive effect on the basket of energy stocks. I want to reiterate this. If you do not have energy stocks in your portfolio yet now is the time to get in. I am reiterating a buy on the following stocks: APA, EOG, SU, and PDC. Overweight EOG and SU. Keep a Medium size position in APA, and a standard position in PDC. Keep a small position in WFT. I am also reiterating a buy the dips in these stocks if your are already positioned for the buy entries.
Portfolio Stock Update 2 Video Update -3/21/07- Trending123.com Portfolio Stock Update #2 DAKT and Ethanol Stocks This week the FED meets. I typically do not do many updates prior to the FED meeting, because the majority of traders and investors are too emotional and skittish to make good trades and the market also becomes more volatile. There are better times to trade the market. It is not right before the FED meets. Furthermore, we are already invested and have placed our trading bets. Consequently in this update I want to discuss and analyze DAKT, ANDE,ADM, and PEIX. This is my liquid stock update with the exception of DAKT. I have suggested staying long DAKT because it has broken out of the continuation wedge and the MACD has bullish positive divergence and is heading higher along with price. ANDE is taking out the down trend line on the daily and 60 minute chart and the MACD has bullish positive divergence and is heading higher along with price. ANDE looks really bullish. There is nothing bearish about it at all. I also think that ADM is set to go parabolic and it has already been on fire since we bought it in the $30's. You can see massive bullish divergence in the MACD and the price has surged on heavy volume. IADM looks great. PEIX is also beginning to look better. Volume is coming back into the stock and as you know, volume always precedes price movements. PEIX is looking bullish. It is not my favorite ethanol play. Keep your position in PEIX small. I am not suggesting new subscribers buy these stocks, nor am I reiterating buys on these for existing subscribers .
RST Trading The Nut Hut Trending123.com Video Update -3/21/07- Trading the Nasdaq 100 Futures RST Pattern - also known as the nut hut pattern. In this Update will discuss the Nasdaq 100 futures. I have been following the NQ futures for general market guidance and direction. As I have already mentioned in previous updates, the NQ is in an RST fractal pattern on the daily and 60 minute charts. NQ futures remain in the ABCDE / RST. NQ recently placed it's lows at E. A reversal occurred at E and it is now trading in a bullish uptrending channel. In addition, NQ has also taken out the 72% retracement level. This is significant and has bullish implications for NQ. This is because taking out the 72% level negates the prior move down in NQ and makes it a corrective move rather than an impulsive move. Consequently, NQ is now on it's next leg up towards the top of the RST at 19000. NQ is also going up on bullish divergence in the MACD. NQ futures are leading the market higher. In Bull markets, futures lead the market higher, and in bear markets cash / Nasdaq 100, leads the markets lower. Furthermore , I just want to remind you that trading the RST is a challenge. It is the most difficult pattern to play. I call the RST the pattern of chaos. There is no rhyme or reason to this pattern. Trying to find the logic to this pattern is like trying to find a cure for stupid, it will never happen. I just want to stress that there are only degrees of losing when it comes to analyzing/ trading the RST. Now that you know that this pattern is a challenge you can steel yourself from the intraday moves. Ultimately, all you need to know now is that NQ will now trade within the uptrending channel until it reaches the top of the RST at 19000. It is bullish.
Stock Market Update Trending123.com Video Update - March 07- Stock Market Update - $NAMO, $QQV, $USD, $UTIL, $MGO, MRO, X, & GSS In this Update I want to review a few charts that we have analyzed in the past few weeks. In this update I will focus on the $NAMO. A few weeks ago we did a podcast update. In that update, we discussed the $NAMO - Nasdaq McClellan Oscillator Ratio. Looking at the $NAMO chart is helpful because it is a good market sentiment indicator that identifies overbought and oversold levels that point towards potential reversals in trend. On this chart you can see that the $NAMO reached extremely oversold levels on 3/21/07 at -86.49. This also happens to be the lowest reading the $NAMO has ever seen. This - 86.49 means that stocks are out of favor and that there declining issues are exceeding advancing issues. Another important point about this chart is that it illustrates that the $NAMO has only experienced these oversold levels twice in it's chart history. The prior lows occurred in 1998 right before the bull market, and during the bear market bounce of 2001. This reading today can be read as extreme panic and precedes / portends a rally. The $NAMO chart is oversold and at an unprecedented low level. This reading just means that stocks are oversold and ready to bounce, it does not mean that stocks are going to hit new 52 week highs right away. The reason why I am bringing this chart up again is because at the time of the $NAMO lows, I stated that the market was ready for a key reversal upwards. In addition, I also stated that the QQQQ's stopped making new lows at the same time as the $NAMO. I further stated that the market had bottomed at - 86.49 and that this was a terrific buying point. To conclude I want to point out that the broader market rallied to new 2007 highs in less than a month after the $NAMO put in it's lows. This extreme and rapid movement from lows to highs in the broader market is significant because it all has to do with the Reverse Symmetrical Triangle that the Nasdaq 100 is in. RST's are extremely chaotic and confusing patterns that create market volatility. It is the only pattern that can go from extreme lows to new highs. In the rest of this update I will review the following charts: $QQV, $USD, $UTIL, $MGO, MRO, X, & GSS.
OIH Oil Stocks Trending123.com Video Update - 3/25/07 - Trending123.com Oil and Energy Stocks experiencing Buying Pressure In this update I will discuss the OIH and the Trending123.com portfolio energy related stocks. This morning the OIH printed new 2007 year highs around $141.00. This new high has created a bullish outside reversal on the monthly chart for the OIH. This means that the OIH is definitely on it's impulse wave 5 move up. Another stock that has made new 2007 highs is WFT. It is a component of the OIH. The great thing about WFT is that it has been a consistent and steady gainer since the lows were put in. WFT is up $10.00 from entry. Now I want to talk about energy stocks that I am looking at from a macro view point. From a macro point of view, SU, APA, EOG, and PDC have not started their bullish impulse 5th wave moves up yet. Therefore, I am reiterating buys on the aforementioned stocks. They are getting ready to take off and follow the OIH upwards
Metal Stocks Suggested Trending123.com Video Update - 3/25/07 - Trending123.com Precious Metal stocks: XAU, GSS, GG, HMY and CRS In this update I will discuss Metal based stocks. To start off I just want to review what the $XAU chart. I want to point out that the $XAU had a bullish island cluster reversal in October 2006. The $XAU is currently under performing the $HUI. Nevertheless,it is beginning to look a lot more bullish based on the positive bullish divergence that is appearing in the PPO. This improvement in the technical's in the $XAU will be beneficial to our Trending123.com portfolio Gold stocks. GSS has been on a parabolic move upwards since the beginning of this year. GSS continues to look good. It has had it's pullback and is now ready to resume it's uptrend towards $5.00. On the weekly chart, GG has broken out of a bullish continuation wedge. GG has not started moving yet and it has just consolidated in a sideways fashion so far this year. I believe that in the long term GG will be a great play. GG is headed towards it's old high around $40.00. The other Gold stock that we have is HMY, which has been a laggard so far this year. However, that is about to change because HMY has taken out it's down trend line on the daily chart, which is bullish. If you need Gold stocks these are the 3 stocks to invest in this year. Another metal stock that we have is CRS,which is completing a corrective move off of it's highs. CRS is now ready to resume it's uptrend and go higher.
High Beta Stocks Part 1 Trending123.com Video Update - 3/25/07 - Trending123.com High Beta Momentum Stocks- GROW, OMG, PSYS In this update I want to talk about our High Beta Momentum Stocks. GROW is a high beta momentum stock. The chart of GROW is a perfect example of what buying pressure looks like on a chart. First of all GROW is bullish because there has been no overlapping of impulse wave1.GROW has now broken out of a corrective wave 3 to wave 4 bullish falling wedge pattern and is now ready to resume it's uptrend in an impulse wave 5 up move. By the way, today is not the day to buy GROW if you missed entry, you will have to wait for a pullback. Now I want to talk about the most hated portfolio stock of all. OMG is in the process of completing it's corrective wave 3 to wave 4 pullback. The MACD is oversold and bottoming and beginning to reverse upwards. This is BULLISH. What do I like about PSYS? I like it because it has broken out of it's pullback channel and is now in a big RST pattern and the MACD is oversold and bottoming and beginning to reverse upwards. PSYS is BULLISH.
Large Caps Mid Caps Trending123.com Video Update - March 2007 - Trending123.com Large Cap stocks In this update I want to talk about why I do not like large cap stocks. The reason for my negative sentiment is due to bearish divergence in the MACD that I see in the chart of the $OEX. I prefer the MID Cap stocks. Mid Cap stocks represent riskier / high beta momentum stocks. In contrast to the $OEX, the $MID chart illustrates that there is no negative divergence present in the MACD. It has bottomed and is ready to reverse upwards. What this signifies to me is that there is still a significant appetite for higher beta stocks in this market. In addition the $MID are outperforming the $OEX which is bullish!
Chemical Stocks Trending123.com Video Update - March 2007 - Trending123.com Chemical Stocks - NCX and LYO In this update I will talk about the chemical sector. The first chart that I want to show you is the chart of the S&P Chemical Index. As you can see from the chart, you can see that the highs in the indicators and oscillators are occurring along with price which is bullish. What this means to me is that the chemical sector is bullish. We have 2 chemical stocks in the Trending123.com portfolio. They are NCX and LYO. NCX is looking very bullish. It has completed it's corrective wave 3 to wave 4 pullback. The MACD has bottomed and reversed upwards which is bullish. NCX is now in a bullish impulse 5 wave up move. LYO has a similar chart pattern to NCX. LYO has recently has a light volume pullback and is now ready to move back up. Once LYO takes out the February 2007 highs at $34.00 it will breakout - so get ready! Both NCX and LYO look awesome!
NASDAQ 100 Trending123.com Video Update March 2007 - NQ 100 Futures in Reverse Symmetrical Triangle (RST) Pattern In this update I will talk about Nasdaq 100 futures. As I have mentioned previously, NQ futures are in an ABCDE/ RST fractal pattern. Ever since October '06 the broader market has been in a techless rally. The chips have not participated. Now, for the first time since the early March lows at E, NQ futures have begun to lead the market upwards. This is a very very significant turn of events. NQ has held the lows and is now trading in a bullish uptrending channel. NQ is now on it's next leg up towards 19000. NQ is also going up on bullish divergence. NQ is leading the market forward. It will now zig zag up. This upwards move will be difficult to trade due to the chaotic nature of the RST pattern. There is no logic to this pattern. Due to the difficult trading nature of the RST, I am going to start focusing on specific sectors that are trading independently of the broader market indexes. I want to start focusing on sectors that have not gone down or that have stopped going down since the market lows were placed.
Chips Techless Rally Trending123.com Video Update March 2007 - Chips and the Techless Rally - SMH, $GSM, $SOX In this update I want to talk about the Chip Sector and the techless rally. Ever since October '06, the broader market has been in a techless rally. This lack of participation by the Chip Sector always made me suspicious of the broader market rally. However, I believe the Chip Sector under performance is about to change. To start off, I would like to analyze the SMH. This has been the worst sector. Why is this? This is because the SMH has been range bound ever since October '06. The exponential moving averages (EMA) have been inverted and flat as well. Nevertheless, the primary trend has been bullish despite the tight trading range. Major resistance is at the top of the triangle and at the 200 day EMA. Now let's look at the $GSM chart. Like the SMH, the $GSM has been in the same chart pattern. It too, has been range bound since October '06. The $SOX also has the same chart pattern. The Chips stopped going up with the winter rally. Now, however, I would like to bring it to your attention that Chip Sector has stopped going down. The recent selloff in the market has not affected the Chip Sector. I believe this new underlying strength in the Chip Sector is significant because it means that the broader market selloff is suspicious. This means that there is more upside to the broader market. Furthermore, chips are now beginning to outperform the broader market. I believe this sector will be a good place to look for new plays.
Chip Sector Leaders Trending123.com Video Update March 2007 - Chips Sector Leaders - BRKS, KLAC, QCOM, WFR, VSEA In this update I want to talk about Leading Chip Sector Stocks. (As a group they are categorized under Electronics in T123) The Leading Chip sector stock is BRKS. It is down the least and it is currently breaking out and making new highs in a market that is not so fresh. This is significant especially when it comes to BRKS. Another out performer is KLAC. What is good about KLAC? Well it will be a front runner to what might happen in this sector. This is significant. Another stock that I want to look at is QCOM. QCOM is in a bullish trend reversal. It has just made new 2007 highs, and it is in a bullish trend. The exponential moving averages have crossed over and are moving up along with price. WFR continues to be bullish. VSEA is also bullish. The fact that all of these chip stocks are out performing the broader market is a clue to the sector's strength. This means that money is flowing into this sector and may be a clue to sector rotation into Chips. Keep an eye on the page called Electronics.
Futures Not Confirming Trending123.com Video Update March 2007 - Futures Not Confirming the Lows In this update I will discuss the fact that the broader market index Futures are not confirming the lows in the cash indexes. Now I just want to take you back in time a bit. If you recall, the QQQQ's topped in mid February of this year. Well, at the time, NQ futures did not confirm the February highs in the QQQQ's by making new highs as well. Instead, NQ futures dropped, and that is when the broader market topped and it began to correct downwards. Now, let's take a look at ES futures. You will notice that the lows in ES futures were put in at the beginning of the of March. ES has just finished retesting those lows and the early March lows have held. The NQ and YM charts look the same as the ES futures charts. In contrast to the futures charts, the cash indexes, such as the $SPX have just made fresh March lows. Futures have not confirmed the lows in the $SPX. This non confirmation by futures means that the market is ready for a reversal upwards. Remember this; in Bull markets Futures lead the broader market higher and in bear markets Cash Indexes lead the markets lower.
Fib Retracements 2 Trending123.com Video Update March 2007 - Fibonacci Retracement LevelsIn this update I will discuss the significance of Fibonacci Retracement Levels. The first chart that I want us to look at is the chart of CME. I follow CME because it has been a consistently strong stock and a market front runner. On the chart of CME I have put up the Fibonacci Retracement Levels. You will notice that CME has just hit the short term down trend line which is also the 72% Fibonacci retracement level (at $572.238). Stocks are attracted to key Fibonacci retracement levels. What is significant about the 72% retracement level? It signifies that market internals are improving. Furthermore, any time that you think you are in an impulse wave up, or an impulse wave down, and when that counter trend rally retraces 72% or more, it will negate what you thought was an impulse wave down or up.
TRADING CHAOS Trending123.com Video Update March 2007 - Trading the Reverse Symmetrical Triangle (RST)/Chaos I just want to make sure that everyone understands that we will not know whether the Reverse Symmetrical Triangle (RST) pattern is of the continuation or reversal variety until we get to specific lettered turning points. The other point that I would like to stress is that when we are trading an RST pattern, the main objective, naturally is to lose less than your fellow trader. The reason I say this is because the RST is a chaotic pattern and causes a lot of confusion in the minds of traders. I like to call the RST the Nut Hut pattern. This is because it makes traders and markets volatile act crazy. The RST pattern is characterized by big up days followed by big down days. This surge in volatility creates chaos in the broader markets. This consequently affects the minds of traders and investors alike. They don't know what to do! Traders are so confused they end up buying the highs and selling the lows! This is because the RST pattern defies logic. Everything that you think you know about trading the market will not apply to this pattern. It is impossible to trade this pattern. That is why I am here to guide you and help you find the right stocks to trade. The best way to trade this type of market environment is to identify and buy the stocks that trade independently of the market indexes and that look to explode to the upside. Buy your stocks on down days and don't chase stocks on up days! In Bullish Markets you ride the Bull and hold on to your stocks like you are on that bucking bronco until the bell rings for you to get off and take profits. I also want to encourage subscribers to start freeing up some cash now. ( For example we have sold OMNI and VLO) This is because I believe there is sector rotation going on right now. Smart Money is rotating into Chips and technology. You can see that the SMH has bottomed and is reversing upwards. It has held up very well during the recent market selloff. Furthermore, the midcaps ($MID), which represent a lot of high beta stocks is outperforming the $OEX. This is where fast money wants to be. Proof of this can be seen in the stock CME which has taken out the 72% retracement level. Start watching the Chips!
RST PATTERNS Trending123.com Video Update March 2007 - Trading the Reverse Symmetrical Triangle (RST) pattern I just want to make sure that everyone understands that we will not know whether the Reverse Symmetrical Triangle (RST) pattern is of the continuation or reversal variety until we get to specific lettered turning points. I like to call the RST the Nut Hut pattern. This is because it makes traders and markets volatile act crazy. The RST pattern is characterized by big up days followed by big down days. This surge in volatility creates chaos in the broader markets. This consequently affects the minds of traders and investors alike. They don't know what to do! Traders are so confused they end up buying the highs and selling the lows! This is because the RST pattern defies logic. Everything that you think you know about trading the market will not apply to this pattern. It is impossible to trade this pattern. That is why I am here to guide you and help you find the right stocks to trade. All that you can do in this type of market environment is trade the stocks that you are already in. Let us take a look at GSS. In order to trade GSS effectively you will always have to keep the long term / big picture time frame in mind. I want to point out that GSS is making new PPO highs with price. Now that GSS has taken out resistance at $4.00 the wave count has changed. GSS is doing what is it is supposed to do. However, it is stronger than I anticipated. I also want to mention that nothing has changed on any of the new buy alerts that I have recently issued. The patterns and price targets are the same. Just make sure that you are not over leveraged in any one position.
Hot Sectors Trending123.com Video Update March 2007 - Today's hot sectors & Stocks and the Fibonnaci 72% Retracement level - POT, EOG, SU, ANDE, OXY & OIH In this update I will talk about today's hot sectors and how to recognize when a stock has completed a correction. The top 3 sectors today are in the commodity and cyclical sectors: the Oil Well Services & Equipment, Oil & Gas Operations, Construction & Agricultural machinery. The bottom 3 sectors today are: Motion Picture, Forrestry & wood Products, & Real Estate Operations. What does this have to do with determining where things might go? Let's take a look at some front runner stocks to see. First I want to discuss how you can identify when a stock has completed a corrective move. When is a correction over in a stock? What can negate a downtrend in an equity and tell us that it has started a new uptrend? I will use the POT chart as an example. You can see that POT has had a harsh selloff followed by a massive rally. When does price have to rise enough to negate that it is an impulse move down and illustrate that a stock has just had an ABC correction? WHEN IT CROSSES THE 72% Fibonnaci Retracement Level! This is especially true when a stock, like POT, waterfalls down. CME is a front runner stock. It too has had a correction and now it is bouncing. CME has not taken out the 72% retracement level yet at $572.23. Therefore, you cannot say that that the correction is over until it does so and holds above the 72% retracement those level. The point to remember when applying to technical analysis is that they often coincide with key points on a downtrend line. Remember this key point about Fibonnaci Retracement Levels. When an equity or market takes out the 72% retracement level it negates the prior move down and makes it a corrrective ABC move rather than an impulse wave down move. Now let us look at some of our Trending123.com portfolio stocks. The first chart that I want to discuss is that of EOG. I want to remind you that we are playing the monthly pull back channel on EOG. Now you can see that EOG has broken out of the downtrending channel and is resuming it's impulse 5 wave up move. So please keep the big picture and long term price target in mind as you hold EOG in your portfolio. All of our Energy stocks look like EOG. SU is another stock that we own. It is never any fun to be in a stock that is pulling back especially when our entry is early. However, just like EOG, we are playing the long term pattern. That is what you have to remember. The other point I want to make is that SU is above the lows, and we are just waiting for it to take out the wave 4 downtrend line. We are in the stock for an impulse wave 5 move. The risk reward ratio at these levels is really great for SU. You are only risking $10.00 to make $30.00 on the stock in the long run. I like SU, and I think it has a great set up for an investment trade. ANDE which also has a good risk reward ratio.The good thing about ANDE is that it has declined with the market. OXY is another good stock. The lows for OXY were placed in January this year. If you look at the chart you can see that OXY has been outperforming the market because it is higher now thanit was in January, and the market has been declining. Now that is the type of stock that I want to be in. I like the energy sector because the OIH is outperforming the market! The OIH chart looks great and it is going up on positve diveregence in the MACD. The strength in the OIH will give upwards momentum to our energy stocks.
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Insidedays Trending123.com Video Update March 2007 - ES & NQ Futures are having an inisde day / definition of This update will be short and sweet. I will discuss ES and NQ futures which are having an inside day today. The 60 minute ES (S&P 500) futures chart illustrates that it had a swift waterfall move down from 1450 to 13750 at the end of February. ES is currently trading in a downward sloping channel. The channel formation is perfectly parallel. This indicates that professional/ program traders are now at work. Technically ES is beginning to look slightly bullish because of the positive divergence in the MACD. ES could potentially rally up to the top of the channel and perhaps take out yesterday's highs. Today ES has taken out yesterday's lows but not the highs. Now we need ES to take out yesterday's highs. In fact all the futures charts (ES, YM &NQ) are having an inside day so far today. What is an inside day? An inside day is defined as a day in which the price of an equity or market stays whithin the same the exact price/ trading range of the preceding day's price range. Basically, nothing has happened or changed technically today. To conslude, in the current market environment, strong stocks will become stronger and weak stocks weaker.
Market Update Volatility Trending123.com Video Update 3/6/2007 - Nightly Update - Market Reprieve from Selling - $OEX, $MID, $SML - GROW, CME, $NAMO This is the Trending123.com nightly update. The broader market indexes have recently been in a long and exhausting selloff. However, today the market had a reprieve from the selling and rallied smartly. Regardless of today's rally, I want to point out some facts that have bothered me about this entire market rally so far. It has disturbed me that the $OEX lead the market higher during the autumn through winter market rally. The $OEX has now dropped from the 2007 highs placed at 671.47 and retraced all the way back to October '06 lows at 634. 80. In addition, it has troubled me that the $OEX has risen higher on negative / bearish divergence in the RSI and PPO. When the $OEX leads the broader market higher it is indicative of a topping market. Furthermore, when the $OEX is the leader, $SML (small cap) and $MID (mid cap) stocks typically plummet. This has not been the case at all during the recent rally. In fact, the leadership has now left the $OEX and rotated into the $MID and $SML. Therefore, the market could not have possibly topped yet. The proof is in the charts. The $MID and $SML charts are bullish and illustrate that new highs in price were made along with new highs in the RSI and PPO. Furthermore, they have held above their January lows. Rotation into small and midcaps is what we need to get bullish on the market. This is because these sectors represent riskier, high beta, momentum type stocks. This means that there is still an appetite for risk in the market. When the appetite for risk diminishes, smart money moves into safety and large cap stocks as the market becomes toppy.
Now I want to talk about GROW. The daily chart of GROW illustrates that it is in a Bullish Continuation Falling Wedge pattern. This pattern forms in an uptrend, therefore it is classified as a continuation pattern. The wedge represents a pause before it continues on its uptrend. GROW is currently in a corrective wave 3 to wave 4 move down to the uptrend line. When it comes to technical analysis, there are specific rules to follow. One of the rules according to Elliott wave theory is that impulse waves can never overlap. The daily chart illustrates that wave 4 at $38.60 has not overlapped wave 1 at $34.87. Therefore,until overlapping occurs to invalidate the wave count, the pattern remains intact for GROW. Furthermore, there is positive divergence developing in the PPO and the Stochastics are oversold. I seriously doubt that GROW will overlap. GROW is doing what it is supposed to do according to the chart patter, wave structure and trend.
Let us take a look at the Chart of CME, which is a high beta momentum stock. This is a stock that has been rallying smartly for the last year. The reason I am bringing this chart up is to illustrate that it keeps on rallying. This means that investors still have an appetite for risk.
The $NAMO - Nasdaq McClellan Oscillator Ratio. Looking at the $NAMO chart is helpful because it is a good market sentiment indicator that identifies overbought and oversold levels that point towards potential reversals in trend. On this chart you can see that the $NAMO has reached extremely oversold levels. This also happens to be the lowest reading the $NAMO has ever seen. This - 86.49 means that stocks are out of favor and that there declining issues are exceeding advancing issues. Another important point about this chart is that it illustrates that the $NAMO has only experienced these oversold levels twice in it's chart history. The prior lows occurred in 1998 right before the bull market, and during the bear market bounce of 2001. This reading today can be read as extreme panic and precedes / portends a rally. The $NAMO chart is oversold and at an unprecedented low level. This reading just means that stocks are oversold and ready to bounce, it does not mean that stocks are going to hit new 52 week highs right away. The reason why I am bringing this chart up again is because at the time of the $NAMO lows, I stated that the market was ready for a key reversal upwards. In addition, I also stated that the QQQQ's stopped making new lows at the same time as the $NAMO. I further stated that the market had bottomed at - 86.49 and that this was a terrific buying point. To conclude I want to point out that the broader market rallied to new 2007 highs in less than a month after the $NAMO put in it's lows. This extreme and rapid movement from lows to highs in the broader market is significant because it all has to do with the Reverse Symmetrical Triangle that the Nasdaq 100 is in. RST's are extremely chaotic and confusing patterns that create market volatility. It is the only pattern that can go from extreme lows to new highs.
Futures Update Trending123.com Video Update 3/6/2007 - Futures Update Nasdaq 100 futures (NQ) are attempting to take out the downtrend line that was formed from last week's decline. Ignore the wave count on the chart. You can see that we are now starting to see signs of bullish divergence within the MACD. NQ futures are currently the strongest right now. ES and YM futures are still bottoming. It is still not the time to buy any new stocks, but keep the ones that you already have. The technology sector / SMH and the energy sector / OIH are currently outperforming the broader market.
Overlapping Trending123.com Video Update 3/6/2007 - What defines Overlapping? Overlapping and the CRS chart In this update I will discuss what defines Overlapping in technical analysis. I will use the CRS chart as an example. Overlapping is the term used in Elliott Wave theory to distinguish the difference between an impulsive wave down move versus a corrective wave down move. Whether a stock is Overlapping or not will determine if the stock is in a correction. CRS has been in a constant lateral overlapping zig zag pattern since June of 2006. This translates into the more commonly known rectangle or Slim Jim pattern. This overlapping type pattern is a corrective pattern. Unfortunately, indicators and oscillators do not tell you what wave you are in until the correction has been completed. Nevertheless, you can see that impulse wave 3 was put in at the highs May of 2006. Then CRS was in the corrective wave 4 Slim Jim pattern until January of this year. CRS has now broken out of a larger symmetrical triangle pattern. Currently there is nothing broken about the stock, and if you look at the revised Elliott Wave count you will see that CRS has not even broken out yet. There is still a lot of upside potential in the stock. The buy alert for CRS was triggered at $109.63. It is a swing trade, meaning that it is meant to be held for 3 to 6 months or until price target is reached at 71 points higher at $180.00.
Divergence Trending123.com Video Update Video Update March 2007- $GOLD Futures Chart and bullish Divergence In this update I will analyze several $Gold futures charts and discuss the implications of bullish divergence. The first chart I have up is the 5 minute chart of $YG (Gold futures). This is a good example of a bullish falling wedge that continues to fall while bullish divergence presents itself. You can see that the MACD is rising as the lows are being put in. This is what is termed positive divergence. Furthermore,$YG is in this fractal bullish falling wedge on multiple time frames. This is bullish chart action, and has positive implications for $Gold itself as wells the $XAU and our Trending123.com portfolio Gold stocks such as GSS.
NQ DOESNT CONFIRM QQQQ Trending123.com Video Update Video Update -March 2007 - NQ Futures do not Confirm QQQQ. This is one more video update that I think is important for you to watch. There is an old saying that goes like this: in Bull Markets: Futures lead the market up and in Bear Markets stocks lead the market down. NQ Futures remain in the Reverse Symmetrical Triangle (RST) pattern, and you can see that futures topped in the intermediate term time frame in January. Now, I want you to alert you to the fact that there might not an inverse correlation of Oil stocks to NQ futures after all. This is because NQ topped in January when unleaded gasoline bottomed. In addition, NQ futures did not confirm the bullish highs that the QQQQ's put in. The failure of NQ to confirm the highs was an additional clue that the market was toppy and ready to correct. Since NQ futures are in an RST, I am currently waiting for NQ to reach the lower bottom trend line to put in wave E.
GAS $USD Trending123.com Video Update Video Update -March 2007 - Unleaded Gasoline versus the $USD $GASO - Unleaded Gasoline - (Continuous Contract End of Day)- Bottoming Triangle Pattern I am updating $GASO because I am excited about this chart. Well, not really, because who want's to pay more at the pump? But, when the analysis is, let's say is parabolic, it is hard not to update. You can see that this year's move up in gasoline has been quite significant. $GASO has outperformed all the other commodities in it's recent parabolic up move. It is also worth noting that unleaded gasoline is reaching new swing highs for 2007 at $1.955, while the dollar goes down. $GASO has not seen this price level since August of '06. August of last year! Remember when 11 hurricanes in the gulf was a coming? Yep. We, we are back to those levels. $GASO is in a bullish bottoming triangle pattern. The indicators and oscillators are showing bullish divergence and it is in a 123 bullish trend reversal. $GASO is bullish.
In addition, commodities have outperformed the broader market indexes so far this year. The commodity sector has just been on fire! Now, looking at the commodities, I also want to mention that as far as gasoline goes, and as far as a lot of commodities go, like gold and Silver, we are going back to highs we have not seen since last may of last year in gold and silver. This is why our portfolio is overweight the commodity sectors. Now let's have a look at $copper.
The US Dollar Index ($USD)- Daily Chart Looking at the daily chart, you can see that the dollar has remained in a bearish trend so far this year. When you look at the daily chart you can see that the $USD rallied up to back kiss the 200 EMA and then promptly reversed course and has been going down ever since then. The $USD has gotten clobbered in the past 2 months. In fact, on Friday the $USD made new 2007 year lows at $83.03. This is bearish. Now it remains to be seen if the December '06 $82.35 lows will be taken out. From the chart it looks like those '06 lows may be taken out. The indicators and oscillators remain in a bearish trend reversal and are pointing down illustrating that the $USD is going lower from here. Nothing good can come from the decline in the dollar. This will result in a debasement of our currency and a rise in tangible assets such as all commodities and in particular, $Gold, which people will seek out as an investment to hedge against the deterioration of the $USD. Commodities will rise and our dollar will deteriorate and it will loose it's purchasing power for basic goods. We are going to need more money to buy basic necessities. I fail to see how this can be positive. What good can come of this? The only good that can result form the dollar's decline is to invest in commodity based stocks that will rise while the dollar drops. Now let us have a look at the $GASO chart. The dollar is bearish.
Banks Brokers Trending123.com Video Update -March 2007 - Banks and Brokers Update I this update I will discuss the Banking / Broker sector and it's impact on the market. Many of the of Banking / Broker stocks have stakes in Mortgage companies . I believe that is why the Banking sector is under performing the market along with the Mortgage companies.
Commodity Melt Up Trending123.com Video Update -March 2007 - Commodity melt - Up in Crude, Gasoline and Gold I this update I will discuss the Commodity melt-up that we are seeing in the Market. It has been a pretty overwhelming market lately, and that holds especially true for today's market action. The broader market had an inside day today. Now I want to talk about the Glitch thing. The more I think about the whole glitch thing that caused the sell off today, the more I think that it is just spin. I believe this because if you have a glitch that causes a sell off then where is the glitch that comes in and does all the buying? Believe or not there was buying today. There was buying in Crude Oil and Gasoline. The glitch in that matrix had no problem buying commodities. Now let's take a look at the $XRB chart. The chart illustrates a shock and awe type of action that smacks of a hedge fund blow type of action. The $XRB is currently in a RST pattern. The huge parabolic rally off of the January lows at E looks like massive hedge fund covering and a hedge fund blow up. In fact, the chart looks very bullish on positive divergence and massive volume and the $XRB looks like a continuation RST. This is going to be a melt up of huge proportions. I will continue to watch the $XRB very closely for you. Now let's look at $GOLD / $YG. $YG made new 2007 swing highs above the 72% retracement level just the other day and has now dropped sharply to the .618% level. However, buying came into to $Gold today. Again, we see buying in the commodities on the glitch day, they are exempt from the glitch. Now let's look at CME. This is a high beta play momentum stock. It is a riskier play. Well, buying on strong volume came into the stock today. This signals to me that people still have an appetite for risk. Shares of CME, ICE and CRS were bought up rapidly yesterday. These leads me to believe that the Glitch news is just spin. Let's see how this plays out for now. I think is bets to see how the high beta stocks hold up and watch the indexes less because they are not telling us the real story.
Wall Street Trending123.com Video Update -March 2007 - Wall Street Today was a very interesting day in the market. This week, the big market news has been the glitch and the computer bugs in the electronic trading system that caused the market selloff. Well, I think they should talk look into the other kind of bugs on wall street, let's call them cockroaches. The more I think about the whole glitch thing that caused the sell off , the more I continue to think that it is just spin. I believe this because if you have a glitch that causes a sell off then where is the glitch that comes in and does all the buying? The glitch in that matrix had no problem buying commodities.
The first chart that I have brought up is the chart of Unleaded Gasoline/ XRB#F. The chart illustrates a shock and awe type of action that smacks of a hedge fund blow type of action. The $XRB is currently in a RST pattern. The huge parabolic rally off of the January lows at E looks like massive hedge fund covering and a hedge fund blow up. In fact, the chart looks very bullish on positive divergence and massive volume and the $XRB looks like a continuation RST. This is going to be a melt up of huge proportions. How can we really understand how massive this rally in Unleaded Gasoline has been? By translating it into percentage terms. Unleaded Gasoline has surged a massive 42.54% , in less than 7 weeks, off of the January lows! I want to now why the market pundits haven't been talking about this rally. Gasoline is not in the news. If Gasoline was Microsoft it surely would be in the news. I believe this rally in Gasoline has caused the market melt-down, because it rallied at the same time the broader market rally topped. Furthermore, the airline sector has been trading inversely to Gasoline, and they continue drop.
Now I want to talk about some of our Trending123.com portfolio Stocks. GSS is a gold stock. It is currently consolidating in a continuation bullish pennant type pattern. The larger pattern is known as the "Loch Ness pattern". GSS is trading independently of the broader market indexes. This is great for us. There is no reason to panic and sell GSS. Commodities stocks are where the strength is and they are not going down. The commodity related indexes have been outperforming the broader market. For example Steel and aluminum have also been on fire. Just have a look at the aluminum stock AL, which we have just added to the portfolio. It back tested the ascending triangle breakout and has now rallied massively off of the backtest. Remember you have to buy the dips! Today YM futures gapped down 200 points and have already rallied back up and we bought the stocks that we wanted to on the melt down. So, we are doing well with AL and CENX. All of our commodity related stocks have gone up! You can't ask for more than that.
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