Candlestick Patterns 101: Meeting Lines (Bullish)
What do you think of when you look at the opening gap and rally today in Apple Inc (NASDAQ: AAPL)? My first thought was Meeting Lines. If you said something different, you of course would be wrong! All kidding aside, the pattern today was really interesting and instructive as a bullish reversal pattern. Let’s take…
Options Market Finds EVs as Infrastructure Vote Looms
The last few days has been a feeding frenzy in the options market as a potential infrastructure vote appeared to be close. It’s not hard to work downstream from this spending behemoth to identify who might be a beneficiary of the passage of the policy. Clearly the options market on Thursday decided to pull the…
Candlestick Patterns 101: Belt Hold (Bullish)
Sometimes the price can quickly reach an extreme after an opening gap lower. With Bullish Belt Hold patterns, the bears are quickly exhausted, and the price begins to advance to close near the high of the period. The ability to stage a significant intraday reversal higher is a strong tell that the bulls are now…
Candlestick Patterns 101: Rising Window
Since we’re in the midst of earnings season, many companies announce either after the market closes or before the market opens. As a result, the opening price may be disconnected from the rest of the chart. The failure to overlap trading ranges is called a gap or window. Window’s can give you an indication of…
It's the TSLA and FB Show, but Who is Supporting?
TSLA is the first Junk rated $1T company. FB falls behind TSLA as they are set to announce earnings. DIS shows that it may be part of the cast as it tests support. DDD, MQ, CLF and ATVI audition for supporting roles based on UOA.
Candlestick Patterns 101: Three White Soldiers
Is there a more bullish sounding name than three white soldiers? Now, with modern charting packages, you can make your soldiers whatever color you want, but the point is that the real body is hollow, thus taking on the background color of your chart. With the price opening lower and ending higher, it demonstrative of…
Stagflation, It’s More Than a ‘High Class Problem’
Inflation is becoming increasingly felt by consumers as prices have been rising at or near historic rates. As a result, the term stagflation is becoming part of the public discourse. Of course, former Obama administration economist, Jason Furman, took some heat for tweeting that current inflationary conditions are a “high class problem.” That has put…
Cyclicals and Retail Find Support as Utilities and Healthcare Lag
As we passed through a significant option expiration on Friday, it was going to be interesting to see how the market responded. After a shaky start, cyclicals, technology and communication led (FB, PLUG, WMT, AMD). With a rising 10-year, Utilities lagged all sectors along with healthcare and Staples.
Candlestick Patterns 101: Bullish Engulfing
After a weak open, the market appears to be rallying to a higher high today compared to last Friday. The type of pattern is fairly common and is a bullish indication. The pattern is called a bullish engulfing because the real body is “engulfing” the previous period’s body. Today’s continuation following last Thursday and Friday’s…
Candlestick Patterns 101: Hammer
One of the great things about candle patterns is the visual that the name conjures up. One of the first patterns that most people identify with that matches what the trader envisions is a Hammer. The idea of a hammer pounding or hammering out a bottom is very descriptive, easy to identify, and even more…