Nonconfirmation

Today, the DJIA made a new recovery high with the help from Visa. The DJT closed with a loss and this resulted in a non-confirm new recovery high for the DJIA. The other market index that did not make a new recovery high today was the Nasdaq 100, NDX.

Something Unexpected

Yesterday an unexpected happened. The Dow Jones Transportation index closed at a new all time closing high. The new high from the DJT was not a complete surprise. Since the Dow Jones Industrials made a lower closing low on 10/16/2014 without being confirmed by DJT, this signal the possibility of a new recovery high.

Earnings Price Targets For 10/28/2014

The following charts show some of the projected earnings report price targets for FB, GILD, WDC and WYNN.

Waiting To Press The Button

The market continues to ride the elevator up and it is just waiting to press the button to trigger a massive exit from all those participants holding on their recent gains.

Earning Watch - 10/25/2014

In this video, we will review the following stocks that are scheduled to report earnings on Monday & Tuesday: TWTR, PCYC, GILD, WYNN and FB.

Too Much Too Fast

The market continued its rebound from the October 15, 2014 low with some very impressive gains on 10/21/2014. The SP500 gained 1.96% by adding 37.27 points, Dow Jones Industrial up 215.10, a 1.31% gain, Nasdaq 100 put in a rare performance by adding 101.31 points or 2.62%, and the Russell 2000 ended the session with a gain of 17.88 or 1.63%.

Is The Selloff Over?

Last week, the market volatility continues to increase. On Wednesday October 15, 2014 the DJIA dropped more than 360 points within the first 10 minutes of trading (Figure 1). After a brief bounce off the opening low, the market resumes its selloff and incurred more than 460 points of losses in the DJIA shortly after the FED released its beige book. During this time period, the selling pressure has reached extreme level where the up volume-down volume ratio went to 10-to-1 favoring the down volume, and the advance-decline ratio also exceeded 10-to-1 favoring the declining issues. When such an extremity is reached by the market, it usually indicates indiscriminate selling or some form of capitulation. What triggered the opening bell and early afternoon sell off is unknown at this time.

Where Will They Go?

The market took a dive in early trading yesterday. The DJIA at one point was down more than 460 points and the SP500 was down over 60 points. In the afternoon, the market recovered from the low of the day and made up a good portion of the early losses. Ever since 9/19/2014 turning point, the market has been in a down trend with short bounces which resulted in a very choppy trading environment. The market is due for a dead cat bounce and maybe yesterday's rebound from the huge drop could trigger a dead cat bounce.

QQQ Trading Scenarios

Here are a few possible scenarios for the QQQ.

MOMO Stock Chop Update

The earlier post on potential price action for GOOGL, NFLX, TWTR and FB has been updated in the following charts.

Be Prepared

The market continues with its violent mood, creating an ideal trading environment for the day traders and a chopping board to the dip buyers. As the market establishing its new trend, one needs to be prepared for some of the possibilities for the market.

Extreme

The market sold off after the rally from the release of the FOMC minutes. The sell-off reached extreme level as many market breadth indicators reached level that could trigger a brief relief rally.

MOMO Stock Chop

As the market continues to be choppy, there are quick trade opportunities on either side for some MOMO stocks. Here is look at these momo stock for possible quick trades: GOOGL, NFLX, TWTR and FB.

Re-programming Continues

The market remains to be volatile and choppy. After three consecutive down days, the market came through with a dead cat bounce and setup some short squeeze to wipe out majority of the PUT options from recent down draft for weekly OpEx.

Market Outlook - 10/2/2012

Today the market made a strong bounce off the morning flush. After all said and done, the DJIA closed with a 3.6 points loss, the SP500 eked out a whopping gain of 1 cent, the Nasdaq 100 regain all its early losses and added 1.13 points, while the star performer of the day, the Russell 2000 added 10.97, approximately 1% gain, and the DJTA added over 66 points.