If you have continued to hold your long positions in wheat then now is the time to liquidate these positions as we have a clear 5 waves up and a strong gap with a bearish reversal today.Aggressive speculators can even look to establish short positions as wheat looks poised for a substantial pullback right here. Read Full Story
What do you get when you cross extremely high volume with an extreme gap lower move?Well, in General Motors case, you get some very high odds that a panic low has been put into place. If we follow historical precedence of past GM stock behavior then this is exactly what has been the case in a vast majority of cases.Today saw exactly this action and because of this historical precedence, which constitutes 80% of the technical work I do, it is a fairly safe time to enter into GM on the long si... Read Full Story
While my short term market calls have been something to be desired over the last week and a half, it is always nice to see the bulk of ones portfolio hedged against market moves such as we have seen this week. The market moves lower and our portfolios remain virtually unchanged!On the Aggressive short term front, our stop loss order have been getting a workout as I have been trying to go long in here for some type of bounce. As you can see this supposed bounce has yet to materialize, but on... Read Full Story
We are starting to see the short term volatility that is indicative of a market attempting to put short term low into place. Today was a good example of such activity.It is a good time for short term short sellers to cover their positions and take some very handsome profits. From here, aggressive traders should look for a spot to establish some short term call options or long equity positions.Intermediate and Long Term Traders should continue to be extremely defensive with an equity allocati... Read Full Story
The cash S&P 500 has reached the wedge downside target that I had discussed last week and has done so in a manner that is consistent with the current move being over or very nearly over.With this in mind, if you have had put options or short positions in place for this decline, now is a good time to take your profits on them and simply sit on the sidelines until we get a stronger confirmation of this move lower being over. When we get this confirmation, then aggressive short term traders... Read Full Story
The yield on the 10 year notes made it up to the 50% retrace level and was turned away as you can see on the weekly chart below.This tells us that we are going to see rates move lower and at the very least a 50% move of the most recent uptick and an outside shot of rates moving to new lows.This is where I would park my money that currently is on the sidelines with the continuing bear market. Read Full Story
Tighten up your stop loss on Wheat to a 20% profit level above your purchase price.This will replace the breakeven stop on the second half of the position.The breakeven point is simply to far away to justify a stop placement, so lets lock in at least a 20% profit on the remaining half of the position.Wheat has reached a pinnacle where it is most likely going to move in one direction or the other in a sharp quick manner so stay alert. Read Full Story
Even in the middle of a bear market there will come opportunities on the long side and although they must be categorized as aggressive because of the condition of the overall equity market, they still offer some great profit potential.Norfolk Southern made a very bullish Morning Star or Birth pattern today and was able to use the 50 day moving average as a launching pad for a possible move higher. The 50 day moving average as you can see, has been a good support level for the stock and until... Read Full Story
We were a bit early on our call that a short term low had been put into place, as there was the outside shot of one last push to new lows for the move, which was satisfied today. Being early on a risky long call in a bear market is just simply proof once again that it is no feat for the faint of heart to put a bullish position into place in the midst of a bear market.This is where we stand yet again, as the chart clearly dictates that there are strong signs that this leg lower on a very small... Read Full Story
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