Candlestick Patterns 101: Side-by-Side White Lines (Bullish)
If today's price action is any indication, it appears the Santa Claus rally is happening this year. That means that many stocks that are already extended after last week's rally will become even more extended. As a result, the Side-by-Side White Lines pattern may be a pattern is Sant's bag of stocks that are being…
A Year Without Santa?
As the pre-Christmas period ends today, investors begin to look forward to the new year and the potential for a Santa Claus Rally. While the concept of a Santa Claus rally has been corrupted to some degree, the next seven days could be big for more than just 2021 window dressing. That’s because Santa’s delivery…
End of Year Stock Scans to get ready for 2022
In this week's TheoTrade weekly update, we start by viewing the year's percentage gains and losses in stocks, commodities, and bonds with a surprising market deeply underperforming and down on the year where equities sustained year-long uptrends. After the percentage update, we then dig into three separate stocks scans for you to have candidates at…
Performance Chasing into Year End?
It's the end of year rotation game as fund managers dump poor performers and buy the outperforming stocks. This happens at the end of the year every year because no fund manager wants to have the poor performers on their books. Here's where we are on volatility and the expected move during this shortened Holiday…
Planning the Holiday Week Ahead - What Events We're Watching Today
We're in a holiday week but don't start your vacation from the market yet! Wednesday and Thursday give us key economic events we're watching and could spike the volatility of the market. Outside the planned economic news this week, we highlight the key price levels we're trading and targeting in the broader equity market as…
Early 'Santa Claus Rally' Abandoned Babies (Figuratively)
I get it, the title is a little morbid, but how else do you introduce the Abandoned Baby candlestick pattern? You could call this pattern "Buddy" after the movie "Elf," but he was more of a stowaway. No matter how you view the price action today, it is a significant indication of support and the…
GSK Option Bulls Get Head Start on Cup & Handle
Pharma has been one of the best performing industries in recent weeks and GlaxoSmithKline PLC (NYSE: GSK) has been among the top performers. Today, it appears that call buyers are stepping into the stock as it tests its resistance near $43.50. As the price rallies, it is close to confirming a cup-and-handle price pattern. It…
Bulls Find Silver Lining Into the Close
The S&P 500 rallied and the VIX fell into the close as the market found intraday support. While it isn't exactly a ringing endorsement that the market is heading higher, it is an indication that the Grinch hasn't entirely spoiled the fun. Looking at breadth, there was an early indication and bullish unusual option activity…
Price Patterns 101: Gaps (Breakaway)
Gaps are a frequent occurrence in the price of stocks. That's because they're closed for most of the trading day. Sure they have extended hours trading, but most people only look at the cash session. As a result, the movement that occurs overnight has an impact on the price the next morning. Even without extended…
Can the Bull Market Be Sustained without the FED?
Market Update----Selling is proliferating - A/D line--Dollar break-out signals risks ahead--Holiday week could hold heavy trade--Trading firms moved to Covid protocol Volatility----I am NOT feeling the fear- dead VIX--vol futures in big contango--skew is low relative to recent moves--VVIX remains in never never land Breakdown----FED has your back NO more!--premium sellers be warned… risk could…