Technical Analysis:

  • Wow, what a rally, yesterday. Honestly, I don't think anybody came into the trading day thinking that the Dow Jones Industrial Average (DJIA) would pop off 300 points or that  the S&P 500 (SPX) would rally nearly 30 points. Nonetheless it did, and is why you always have to be prepared for any and all situations as it pertains to the stock market. 
  • Volume on SPDRs S&P 500 (SPY) came in strong yesterday and well above recent averages, which helps confirm the validity of the move from yesterday. 
  • Breadth was solid yesterday, however, there was an anomaly with the CBOE Market Volatility Index (VIX) where despite the huge market rally, it rallied hard off of the intraday lows to finish 3.7% higher on the day. 
  • Strong improvement in the T2108 (% of stocks trading above their 40-day moving average), with a reading of 72%. Ideally it needs to move back above the 80% level. 
  • 30 minute chart of SPX is straight parabolic and could use a little bit of time to work off the intraday overbought conditions. 
  • 3 out of 4 indices hit new all-time highs yesterday, with Nasdaq (COMPQ) only being a breath away from following suite. 
  • As I've said before, oil only matters when it is rallying. When it sells off, it completely shrugs off its impact on the economy. 
  • The Federal Reserve has no choice but to raise rates next week. They are out of excuses and have put themselves into a corner. So far the market hasn't paid a rate hike any thought. Last year the market didn't sell off until after the FOMC Statement. 

The Swing-Trading Edge has offered unbelievable opportunities for traders during the month of November, and I expect the same as we get going here in December. Start trading with me to see for yourself what a membership to my service can do for your portfolio. Sign up for a Free 7-Day Trial - with your subscription, you will get each and every trade that I make with real-time text and email alerts (international too) as well as access to my chat-room that I trade in each day. Click Here to try it for Free!

Here's your swing-trading watch-list:

Long Mircosoft (MSFT)

msft

Long Bank of New York Mellon (BK)

Technical Analysis:

  • Third straight day of higher gains for S&P 500 (SPX) after successfully holding support at the 2190 level.
  • An intraday test of the 10-day moving average resulted in an immediate surge in price that lasted throughout the rest of the day for SPX.
  • Russell 2000 (IWM) saw record highs yesterday after completely erasing a 5-day decline in just two days of rallying and its chart is back on solid footing.
  • Despite the other indices performing strong, the Nasdaq (COMPQ) lags, and needs to break 5350, and eventually 5400 to re-assert its dominance. There has been some short-term oversold readings in the index, that could indicate a more substantial bounce can be had.
  • Volume on SPDRs S&P 500 (SPY) continues to weaken for a fourth straight day - and well below averages. This has become the hallmark of most rallies of the past few years - low volume and a continual melt-up. 

  • CBOE Market Volatility Index (VIX) continues to get smashed, dropping another 2.9% down to 11.79. At this point, the August lows are being threatened. 

  • Crude (/CL) attempting its slide for a second straight day and is attempting to break some key support at the $50 price level. 

  • Lower highs continue to be made on the T2108 (% of stocks trading above their 40-day moving average) and has established lower-highs on each major surge to new highs that occurred in July and again in November. This should be a major concern for traders as the the highs aren't being made on substantial breadth across the market. Typically I would expect well over 80% of stocks trading above their 40-day moving average when price is at all time highs. Right now it is at 68%.

  • With the election behind us, the market should start to turn its attention to the Federal Reserve and the eventual rate hike that will come on December 14th when the next FOMC statement is released. 

The Swing-Trading Edge has offered unbelievable opportunities for traders during the month of November, and I expect the same as we get going here in December. Start trading with me to see for yourself what a membership to my service can do for your portfolio. Sign up for a Free 7-Day Trial - with your subscription, you will get each and every trade that I make with real-time text and email alerts (international too) as well as access to my chat-room that I trade in each day. Click Here to try it for Free!

Here's your swing-trading watch-list:

Long Aecom Technology (ACM)

acm

Long American International Group (AIG)

Technical Analysis:

  • The S&P 500 (SPX) opened strong yesterday in the wake of the Italian referendum, but as has been customary in the previous five trading sessions, the price action faded the early morning gains. 
  • On the flip side, SPX did manage to regain its 5 and 10-day moving averages. 
  • It will be important for SPX to re-establish new all-time highs, or the two day bounce that has been seen here will be simply viewed as a dead-cat bounce. 
  • Russell Index (IWM) was incredibly strong yesterday posting a strong bounce following its 5-day sell-off. 
  • Volume on SPDRs S&P 500 (SPY)  was lower for a third consecutive day, and came in below recent averages. 
  • A large gap left unfilled on SPY from yesterday's price action, however, a break above yesterday's highs, could be all this market needs to push back towards establishing new all-time highs once again. 
  • Crude (/CL) is looking at a substantial sell-off today, trading down 2.3% already. On United States Oil Fund (USO) it is looking at an open that takes price into the gap. The tendency of late is for the market to only pay attention to oil when it is trading higher. 
  • Lower highs continue to be made on the T2108 (% of stocks trading above their 40-day moving average) and has established lower-highs on each major surge to new highs that occurred in July and again in November. This should be a major concern for traders as the the highs aren't being made on substantial breadth across the market. Typically I would expect well over 80% of stocks trading above their 40-day moving average when price is at all time highs. Right now it is at 66%.
  • With the election behind us, the market should start to turn its attention to the Federal Reserve and the eventual rate hike that will come on December 14th when the next FOMC statement is released. 

My Trades:

Technical Analysis:

  • The S&P 500 (SPX) did little to nothing on Friday as price maintained the status quo while also upholding support at the August 2016 highs. 
  • There exists still the potential for a test of the 20-day moving average. 
  • Volume on SPDRs S&P 500 (SPY) fell for a second consecutive day, and came in below recent averages. 
  • Overall, the market is coming off of its recent overbought levels, but still has plenty of room that it can take to the downside, without overextending itself. 
  • Yesterday's Italian referendum is having its effect on the market, with futures initially selling off hard, then to find immediate buying interest once the European markets opened. As a result, traders are looking at a gap higher this morning. 
  • United States Oil Fund (USO) showing strength today ahead of the market open and looks ready to test the October highs, once again. If that happens, there is a real chance for a breakout with this commodity. 
  • CBOE Market Volatility Index (VIX) rose for a third straight day, but the slight increase in strength is at risk of stalling out here at current levels. 
  • Slight bounce out of the Nasdaq (COMPQ). The path least resistance going forward still appears to lie to the downside. 
  • Lower highs continue to be made on the T2108 (% of stocks trading above their 40-day moving average) and has established lower-highs on each major surge to new highs that occurred in July and again in November. This should be a major concern for traders as the the highs aren't being made on substantial breadth across the market. Typically I would expect well over 80% of stocks trading above their 40-day moving average when price is at all time highs. Right now it is at 62%.
  • With the election behind us, the market should start to turn its attention to the Federal Reserve and the eventual rate hike that will come on December 14th when the next FOMC statement is released. 

My Trades:

The Swing-Trading Edge has offered unbelievable opportunities for traders during the month of November, and I expect the same as we get going here in December. Start trading with me to see for yourself what a membership to my service can do for your portfolio. Sign up for a Free 7-Day Trial - with your subscription, you will get each and every trade that I make with real-time text and email alerts (international too) as well as access to my chat-room that I trade in each day. Click Here to try it for Free!

Here's your swing-trading watch-list:

Long CBRE Group (CBG)

cbg

Long Lazard (LAZ)

Technical Analysis:

  • A rare day of near-unabated selling yesterday in the S&P 500 (SPX), that saw the index drop a resound 7.7 points! (gasp!)
  • All kidding a side, you have the 5-day moving average starting to tilt lower, as well as the 10-day moving average being broken in a convincing manner. Good chance at this point, we see a test of the 20-day moving average. 
  • SPX settled in at a key support (short-term) at the August high consolidation levels. 
  • The most notable selling however, took place in the Nasdaq (COMPQ) where the index shed over two percent (128 points) in the last two days. Software and Semiconductors are getting absolutely hammered right now. 
  • Also, Nasdaq dropped below its 20 and 50-day moving averages yesterday and could see a scenario where it retests its November lows. 
  • Oil continued its surge yesterday with the United States Oil Fund (USO) surging another 3.7%, but forming a concerning blow-off top-like candle, or shooting star some would say. 
  • Most of the Thanksgiving week holiday gains have been wiped out by the downturn experienced this week. 
  • Down tick in the daily volume on SPDRs S&P 500 (SPY) yesterday, and just a shade below recent averages. 
  • Volatility saw a 5.6% pop yesterday back over 14, but still endured an afternoon sell-off from its highs creating a large shadow above its candle body. This continues to be the theme of the CBOE Market Volatility Index (VIX) regardless of what equities actually do. 
  • Money is flowing, once again, out of tech and back into banks and now into oil too. 
  • Following a 15-day rally on the Russell (IWM), it experienced its fourth straight day of selling and broke below its 10-day moving average. There is very little support underneath current price action. 
  • The last two times there was a massive +10% rally in the Russell Index in a given month, the next month led to substantial sell-offs. December though isn't known for major sell-offs, in part due to the 'Santa Rally' effect. 
  • Lower highs continue to be made on the T2108 (% of stocks trading above their 40-day moving average) and has established lower-highs on each major surge to new highs that occurred in July and again in November. This should be a major concern for traders as the the highs aren't being made on substantial breadth across the market. Typically I would expect well over 80% of stocks trading above their 40-day moving average when price is at all time highs. Right now it is at 60%.
  • With the election behind us, the market should start to turn its attention to the Federal Reserve and the eventual rate hike that will come on December 14th when the next FOMC statement is released. 
  • If it is anything like last December, it should create some jitters in the market as well as a potential selling catalyst that leads to a significant sell-off. 

My Trades:

The Swing-Trading Edge has offered unbelievable opportunities for traders during the month of November, and I expect the same as we get going here in December. Start trading with me to see for yourself what a membership to my service can do for your portfolio. Sign up for a Free 7-Day Trial - with your subscription, you will get each and every trade that I make with real-time text and email alerts (international too) as well as access to my chat-room that I trade in each day. Click Here to try it for Free!

Here's your swing-trading watch-list:

Long Lowes Companies (LOW)

low

Long Cummins (CMI)

Technical Analysis:

  • Despite Oil (/CL) experiencing its biggest rally since March (+9%), the S&P 500 (SPX) sold off in the afternoon and into the close to finish in negative territory. 
  • Even with banks and oil companies soaring, it wasn't enough to lift the market higher. 
  • Volume on SPDRs S&P 500 (SPY) had a strong bearish engulfing candle pattern after establishing intraday all-time highs and had above average volume for the first time since the election aftermath (11/10).
  • Despite the bearish engulfing candle pattern, there is still the potential for a bull flag pattern, though a move lower today would likely nullify the pattern. 
  • On the 30 minute chart of SPX, there exists the possibility of a double top pattern ready to confirm on a move below 2198. 
  • CBOE Market Volatility Index (VIX) showing signs of wanting to bounce for the first time since early November and prior to the election. Support appears at the 12.20 area. 
  • Money is flowing, once again, out of tech and back into banks and now into oil too. 
  • Watch the 10-day moving average on $SPX today - which hasn't been tested since finishing 9 straight days lower. 
  • Significant sell-off on Nasdaq (QQQ) yesterday and wiping out six days worth of prior price action/gains. 
  • Following a 15-day rally on the Russell (IWM), it experienced its third straight day of selling and broke below its 10-day moving average. There is very little support underneath current price action. 
  • The last two times there was a massive +10% rally in the Russell Index in a given month, the next month led to substantial sell-offs. December though isn't known for major sell-offs, in part due to the 'Santa Rally' effect. 
  • Lower highs continue to be made on the T2108 (% of stocks trading above their 40-day moving average) and has established lower-highs on each major surge to new highs that occurred in July and again in November. This should be a major concern for traders as the the highs aren't being made on substantial breadth across the market. Typically I would expect well over 80% of stocks trading above their 40-day moving average when price is at all time highs. Right now it is at 63%.
  • With the election behind us, the market should start to turn its attention to the Federal Reserve and the eventual rate hike that will come on December 14th when the next FOMC statement is released. 
  • If it is anything like last December, it should create some jitters in the market as well as a potential selling catalyst that leads to a significant sell-off. 

My Trades:

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the part time swing trader