I hate to prognosticate with wild abandon when the government could quickly throw a monkey wrench into the machinery of the market by walking away from a fiscal cliff resolution. (I had a funny image from Charlie Chaplin’s Modern Times to insert here but I couldn’t get the licensing in time). But I’ll take a chance and say what I’m thinking.
There are patterns in the major indexes, ETFs and individual stocks that suggest the next few days or weeks may see some market strength. What caught my attention was noticing it was most obvious in the NASDAQ, which represents a lot of tech stocks. An open near Tuesday’s close leading to a close near the high:
Ok, that may or may not be a reversal kicking off a decent up-move. Then I looked at 30-minute charts. The QQQ set a low Tuesday morning and this morning opened near that low again, but quickly turned upwards on high volume. Activity tapered off through midday, which is typical. But then buying came in at the end with the Q’s closing near the high of the day.
A double-bottom followed by consolidation near the highs of the past two days shows a change in sentiment.
I found this same pattern in many individual stocks. In patterns like the 30-minute QQQ above, a break above that upper trendline (around 65.5) should lead to a decent up-move, as long as Congress and the Executive branch keep out of the news for a few days. Or is that asking too much?
Of course, there’s much more you need to know and many more stocks you can capitalize upon each and every day. To find out more, click here: www.markettamer.com/seasonal-forecaster
By Gregg Harris, MarketTamer Chief Technical Strategist
Copyright (C) 2013 Stock & Options Training LLC
Unless indicated otherwise, at the time of this writing, the author has no positions in any of the above-mentioned securities.
Gregg Harris is the Chief Technical Strategist at MarketTamer.com with extensive experience in the financial sector.
Gregg started out as an Engineer and brings a rigorous thinking to his financial research. Gregg’s passion for finance resulted in the creation of a real-time quote system and his work has been featured nationally in publications, such as the Investment Guide magazine.
As an avid researcher, Gregg concentrates on leveraging what institutional and big money players are doing to move the market and create seasonal trend patterns. Using custom research tools, Gregg identifies stocks that are optimal for stock and options traders to exploit these trends and find the tailwinds that can propel stocks to levels that are hidden to the average trader.
Also on Market Tamer…
Follow Us on Facebook