$SPY Chart Signals: 8/30/15

spy2015

The sell off last week was fast and furious, even compared to 2000 and 2008. Once the $SPY lost the 200 day simple moving average, distribution set in. There was virtually no price recovery as the Dow Jones Industrial Average shed 2,000 points over five trading days. On Wednesday the bounce began. There is a good probability that last week was not the bottom for 2015. This may … [Read more...]

5 Signals that Will Prove $SPY is Reversing

spy2015

Maybe this is a reversal off a near term bottom over the past three trading days, and maybe it's not. I will let price be my guide. Here are the five things I need to see for me to start trading¬† the long side again, and buy dips rather than selling rips short. I am bearish here based on the past 2 weeks of price action. First, the $SPY has to close over the 30 RSI to show … [Read more...]

10 Signs 2015 is not a Bull Market

Bears you aren't in Kansas anymore

Bulls, you aren't in Kansas anymore. The 2009 - 2015 stock market uptrend is gone. I am basing this not on my personal opinions or predictions, but what I see on the current charts. Here are 10 facts that show that we are headed down. All stock market indexes are trading under their 200 day simple moving averages. Bad things happen under the 200 day; this is a sign … [Read more...]

How to Trade During a Zombie Apocalypse

Trading Zombie Apocalypse

The past five trading days have been some of the worst price action I have ever seen. Today will go down as one of those trading days you never forget. If you didn't lose money, you had a great day. If you made money---well done! The dip buying signals of the past six years have failed, the bell has rung, the bulls have lost, and something bad is brewing. Here are my 12 tips … [Read more...]

$SPY Chart Facts: The Death of Buy the Dip

spy2015

For the first time in many years buying the dip failed in the stock market. It failed with an enormous plunge in the Dow Jones Industrial Average of over 1,000 points from Monday's open of 17,472.66 to Friday's close of 16,459.75. This brings the DJIA into a +10% correction from a 52 week high of 18,351.40 to the Friday close. The speed of the selling of stocks on Thursday and … [Read more...]