Good morning traders, Yesterday was kind of a non-event for the US Markets. We made multi-year highs overnight and opened higher. As often happens, the entire move happened overnight and buyers were reluctant to bid up the already marked-up market. At the end of the day we did see some selling come in, but it really seemed to be a … Read More
Morning Thoughts for December 13, 2020
Morning setups from Adam
Traders Ask: When is a Market Overextended?
Adam anwers a reader’s question about identifying overextended markets
“Pay attention… this is important”
Sometimes failures of patterns can give us insight into the overall market environment.
Morning Thoughts 12/10/10
For the equities market, there are three scenarios I am considering today. In decreasing order of probability: 1. The S&P will hold this range (looking at 1233 on the futures) and stay in consolidation all day. Normally, I would say there is a 70% chance of this happening due to the Rusell 2000 and other mid/small cap indexes which are … Read More
Morning thoughts 12/9/10
Good morning traders, The S&P 500 is still dealing with important resistance, which is not a clear level but a rough zone from 122 – 123.60 on the SPY. Though we are above that this morning, this is a large zone and we cannot expect a clean break. The Russell 2000 index (see IWM) is still potentially overextended and vulnerable … Read More
Morning thoughts 12/8/10
Good morning traders. As I wrote in my morning note for Waverly Advisors: “Though yesterday’s price action in the US Equities markets does not appear to be constructive for the bulls, it is important to consider the context of this move. The S&P 500 (chart above) shows what appears to be a classic failure above resistance, but smaller market cap … Read More
Morning thoughts for December 7, 2010
Morning Ideas from Adam
