When a candlestick with a short body in the middle of two long wicks forms in the market this is indicative of a situation where neither the buyers nor the sellers have won for that time period as the market has closed relatively unchanged from where it opened. The upper and lower long wicks however tell us that both the buyers and the sellers had the upper hand at some point during the time period the candle represents. When you see this type of candlestick form after a runup or run down in the market it can be an indication of a pending reversal as the indescision in the market is representative of the buyers loosing momentum when this occurs after an uptrend and the sellers loosing momentum after a downtrend.
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What are Tony Lake’s qualifications to run the number one children's relief works in the world? Maybe his silence during the Rwandan genocide, when as National Security Advisor to President Clinton he admitted knowing about and “regretted” not doing something when hundreds of thousands of women and children were hacked to death in central Africa. Then there were the million and a half women and children in Eritrea who had to flee for their lives in the face of the Ethiopian invasion in 2000, something Tony Lake was intimately involved in helping instigate and direct.http://www.counterpunch.org/mountain09032010.htmlRead more…
The IHS pattern I spoke about earlier in the week played out. Res at 91 intact for now, but no large selling pressure so far either. However, to get long I need price to retrace back to 50% fib (minimum) of previous H4 swing.No doubt in my mind H4 and Daily bias long.
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By Nicholas Santiago on September 2nd, 2010 10:19am Eastern Time
Yesterday the major stock market indexes surged higher on the back of positive Chinese data, a positive ISM Index in the U.S., and a severe decline in the U.S. Dollar Index. This sharp reaction higher in the stock market obviously caught many short traders and investors off guard in the short term. Recently many talking heads in the media had been talking about the bearish Hindenberg Omen. This bearish technical and fundamental setup was actually featured on the Yahoo homepage and also on many local news channels that never feature the stock markets. While the markets could still decline it will rarely do so when the public knows about it. The stock market is just not that easy. Remember if it was everyone would do it. Don't you all remember the 1920's or the so called 'roaring twenty's. What about the more recent 1990's? The tech bubble or the dot com bubble are historic events that will be read by many generations of people to come. This is now a traders market and not meant for the buy and hold investor any longer. The easy money that comes along once or twice in a century has been made already.
Normally after a large point move in the market the next trading session is usually a flat type of trading day. It is natural for markets to often pause or consolidate the gains after a major advance or decline. Tomorrow is also the highly anticipated government non-farm payroll employment report for the month of August. Therefore, today the market indexes could experience very light volume after the first couple of hours of the trading session.
This morning most retail stocks are trading higher helping to keep the markets positive. The Retail Holders Trust (NYSE:RTH) is trading higher by 0.92 cents to $90.60. This ETF surged higher yesterday and remains strong today. Costco Wholesale Corp (NASDAQ:COST) is another leading retail stock that is trading sharply higher today. Costco Wholesale Corp is trading higher by 0.91 cents to $58.70. Other leading retail stocks that are moving higher are Nordstrom Inc (NYSE:JWN), and J.C. Penney Inc (NYSE:JCP). When retail stocks rise it is often an indication that the consumer is spending money. This is a positive for the economy because consumer spending accounts for more than 70.0 percent of the gross domestic product in the United States. Should the retail stocks begin to decline then traders and investors must be careful as this would be a sign of contraction in the economy.
In any case we are really not expecting fireworks today before the government employment report. It is also important to remember that the next trading day after a major rally or decline is usually a pause or small consolidation session for the major stock indexes.
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Posted by Geofract on September 2, 2010 at 11:08am
Eur/usd H4 levels I am watching. Price jumped back in the H4 channel yesterday. Bold blue lines are daily key levels. Red line is daily TL. Possible IHS formation occuring... we shall see. I don't like trading this pair that often, because price is messy sometimes, but it's well worth keeping an eye because it's such a major pair.Click chart for big version.
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