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Showing posts from April, 2019

The NH-NL index do it again

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By kind permission of Elder.com , the website of the recognized trader, Alexander Elder, I reproduce for you, literally, its recent article "Books and Trades #256: A Spike Lesson... Education... A new book special" of April 24th, about the accurate signal that gives the New High- New Low Index (NH-NL) indicator in the powerful market recovery since late December 2018 , post which I publish here . Not popular in trading platforms, at  www.indexindicators.com you can find this indicator for the SP500 or other indexes. Just select the stock index, and in Breadth indicator the NH-NL option. Also here , in stockcharts.com, you could check this indicator in a weekly chart. Now the SP500 SPX is all-time highs again and, in Elder' words , the question now "is whether the upmove will continue more or less uninterrupted or whether there’ll be a retest of the initial low like we saw in 2016. Some gravity is seen returning to the markets". Dear Trader, The lette

A Great Tool for Trading: the Range Bars

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Basics. The Range Bars are a different way to create and read a stock chart. Develop by Vicente Nicolellis, it exploits the volatility of the markets, making the time irrelevant in a chart , eliminating it. The main feature of this tool is, in my opinion, the great way it filters the noise, and so, avoiding from our analysis many usual false signals and whipsaws . In a time-based chart of, for example, 10-minutes, we have a bar every 10 minutes, and so the same number of bars for one hour, and so, for all the session, regardless the volatility of the stock. In the range bars, we don't know how many bars are going to be plotted because it depends on volatility: when it's high, more bars are printed. For low-volatility, fewer bars will be print. Three basic rules define a chart with Range Bars: - Each range bar equals a high-low range, the specified range that we have to decide. - Each range bar must open outside the high-low range of the previous bar. - Each range

Breakout Stocks to Follow this Week

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1. Celgene Corp. CELG , $95.00 CELG , one of my favorites stocks from the Health Sector XLV for this week. In news, is near its mega-merger with Bristol-Myers BMY , that could give volatility to this stock. Technically, last week broke its 3-month consolidation phase (show in the horizontal yellow channel) with a typical breakaway gap. Today closes at $95, which is also its year-resistance, so it's an important level to watch. Need to confirm this week this gap , and if so, begin its rally mode. 2. Roku Inc. ROKU , $60.73 The daily chart of ROKU shows a symmetrical triangle, a classic pattern that could break up or down, it's always undefined. Probably hit by the new AppleTV+ streaming service, this stock sinks today 4.2%, breaking the lower line of the triangle and approaching the stock to its key SMA50 average and the Ichimoku cloud. I put this volatile stock in my radar, waiting for its behavior next days before shorting it. 3. T

Technical Notes of my April' Stock Watchlist

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Market Pulse. There is a noticeable bullish sentiment from the market, supported by recent good economic data from China, the still unsecured inversion of the yield curve and the increasingly near possibility ( almost confirmed by The Financial Times ) of a final trade agreement between the US and China. The only doubt of the investors and traders is known i f the market has already discounted this fact in its powerful recovery since January . There are only two possibilities: a) If so, we have attended these months to a usual "buy the rumor, sell the news", and the rise with the news (the end of the Trade War) will be fleeting. b) If not, their indices will continue advancing to new maxima, among them the expected SP500 SPX in 3,000. April' Watchlist Some brief technical notes and forecasts of the stocks that make up my watchlist "Main15" for April. As usual, remember, they are NOT buying suggestions, only my personal ideas. 1. A