Out With the Old… (DIA,XRT,PIR,FIT,SLV,XBI,XLE,GS,UIS,SIRI,RSX,QQQ)

Out With the Old… (DIA,XRT,PIR,FIT,SLV,XBI,XLE,GS,UIS,SIRI,RSX,QQQ)   The local authorities in my city have just notified me that my newborn son’s name is  not acceptable to them, and that I’m going to have to change it.   If ever there were a case of government overreach, this is it.   They’ve informed me that in order to keep the moniker that I’ve longed to give him, I’ll have to go to the courthouse on my own time and at my own expense to have the child’s name officially registered before a judge.   If, of course, the judge agrees. In this day and I age, there’s no shortage of asininity in the world.  I can be a Satanist.  I can have a sex reassignment.  I can purchase and cohabit with a robot.  But I can’t call my kid what I want to call him?!   What the hell is going on!?   People call their kids all sorts of crazy, dimwitted names, like Sourberry or Gauzeleak, while my wife and I sit puzzled at what could possibly be so wrong with the sweet sound of ‘Dander’.   That’s right, Dander.   My wife’s great uncle from Denmark, who passed away nearly…

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Things We Like. And Things We Don’t (QQQ,AAPL,PIR,SPY,DIA,AOBC)

Things We Like.  And Things We Don’t (QQQ,AAPL,PIR,SPY,DIA,AOBC)   Ed. Note – the devastation in Florida and across the southwest warrants a word of hope and encouragement for all those who experienced the wrath of Irma … Hang tough, friends.  And be good to each other.   Our thoughts are with you.   There are currently a number of discordant trends in the market that are worthy of our scrutiny, and that we believe point to precisely where we’re positioned in this longest and most powerful of all bull markets.   We hope that a firm understanding of that position will also reveal to us an appropriate trade for the week, as unlikely as it may appear as we begin.   So…   We start with a look at the dollar, in the midst of one of its worst declines in recent history, a bearish move that began on New Year’s Day and has spiraled lower by 12.5% as of this writing.   Here’s the buck – It doesn’t look good.   The dollar’s struggle seems to grind on despite the threat of higher interest rates, despite the rally in both the stock and bond markets, and despite the jawboning of…

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Volume Precedes Price (PIR,XLK,KBE)

Volume Precedes Price (PIR,XLK,KBE)   It’s axiomatic among market technicians that volume is the key ingredient behind price changes.  On the one hand, it’s a purely economic equation, the greater the demand for an item, the higher it’s price will move, given a static supply.  Conversely, when demand dries up, prices should be expected to fall, or stop rising, at least, as the catalyst for their advancing in the first place has now been removed.   But does that always translate in the world of equity trading?  And how can the volume action on a stock or sector, or in the overall market, help us to make better trading decisions? Glad to have you.   A number of people have attempted to probe the matter, and in the most fundamental sense, traders should be aware of potential tops and bottoms every time they see a genuine swell in trading activity.   Accumulation and Distribution   Two terms that define the technician’s understanding of volume are ‘accumulation’ and ‘distribution’.   When the so-called smart money is loading up on a stock at the bottom of a downtrend, the term ‘accumulation’ is attached to it.  And conversely, when the bigshots are selling…

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