Directional Analysis

Earlier I posted a video where I was talking about an “Energy” ETF  but it was the Financial ETF. My appologies, I kept looking at both ETF’s and I just left the wrong one up for the video. So this whole video is all about the XLE, which is the real Energy ETF. Until next time.

On this video I just keep everything on perspective on why the technical are telling me we will be having a Year End Rally (or YER).  I am keeping an eye on the balls which have been the leading indicators why we will be heading up and also on the sector I am liking the best (as far as technicals are concern). Other than that, happy December 1st and talk to you soon.

Just a quick recap on the last video update and how we are doing so far. Today it looks like just like a mild consolidation and holding the movement to the upside, after a 3% move of almost all Indices across the board yesterday. This to me confirms the bullishness of the turn as well as the action of the Dollar and the Commodities.

I am reviewing the S&P 500 Futures, the US Dollar, Gold, and Oil Futures to show you the relation within all of them. We had a light volume week with the holiday week just past, now that it is over the buyers are back and the shorts will be trapped. This means the rally will be fast and furious.

Even though Volatility took over today, according to my analysis, we are done with the consolidation. There are a few other charts I show on this video that supports this thesis and with Oil/Energy Sector and the King Dollar doing what they are doing, they are only supporting my analysis. On this video I go over the patterns the S&P 500 is in and the US Dollar and how they are almost mirror images of each other, therefore we should be looking for the Dollar to go down and the market push higher.  As far as Oil/Energy sector, this is the sector which will help the market push to higher prices. Watch this video and see what my analysis is showing me.  Until next time, God Bless and Goodbye!!!

The one thing about Technical Analysis you have to understand is that you go by what you see not by you think you see. What does that mean? It means that you can set you parameters (most cases patterns constructed in geometrical form) and you wait for confirmation of those parameters, and most of the time you know which way they will resolve according to those parameters and probability fact that have been already studied by way smarter people than you or I. None the less, to be able to set the parameters you need the data first and now that we have more data thing are becoming clearer. So far we are looking at just a consolidation which could resolved by the end of the week. So keep an eye for the next video update, because it might be the break one way or another. Until next time…..

Wow, I am exhausted.  Dealing with Market Volatility is like dealing with an Individual with Bi-Polar Disorder who doesn’t want to take their meds. None the less, on my last update I did say that the market was approaching resistance and that the Moving Averages of the MACD were looking a little weak.  This meant the break out of the Symmetrical Triangle could have been a fake out. Now looking back, we can tell that it was and now we are looking at more of a double top, at least for the shorter term.  I do still look for prices in the market to be higher in a month or so, but Volatility is not something to ignore.

Yesterday, the S&P Futures started breaking out of the consolidation area it has been in since last week. No I would like to see what type of follow through we can get today and how does the QQQ’s (the ETF for the Nasdaq) Diamond Pattern resolve to. So far I do think the US dollar Symmetrical triangle will resolve to the down side so that will push the Equity Market to higher prices. I will make another update soon enough with more detailed once we get more data. Good Day everyone.

The Consolidation lasted three days, and it was as I depicted on my previous Video Update “shallow”.  Today we are busting through the resistance area with nice volume, and more than likely will continue through the end of the month. I would like to say, this rally is not an extension of the economy being much better than expected, but its really more of a “short seller’s squeeze” with some Technical triggers. None the less, this month will be the best October in a very long time. In the following Update I show how the technical tools have triggered the rally and where we should be heading to in the near future.

On Friday the market was finally able to close above the resistance area which kept the S&P 500 Index sequester for almost two months.  For now, almost all the Major Indices are doing an Engulfing monthly pattern which I depict in this video update. I have also pointed out some of the sectors that are leading the markets and are looking the best potential gains once they take out the areas of resistance I have drawn. Finally, I look at the energy sector and how the US Dollar has a significant relationship with The Major Indices and some of the Commodities.  The Market is up between 16-20% in about three weeks since I called the bottom using technical analysis; I expect a brief pause before we continue this end of the year rally.