Blog

19 December 2018

So in spite of my bullish bias in the posts below, the market had another opinion and decided to go south. Now, it is resting on a support that is actually close to the low of the year! Does it mean a bullish action soon?

Figure024

(source: TradingView)

10 December 2018

This is the current situation in the stock market (i.e. SPY) after the market close:

Figure023

The market is resting on the support. The recent candle was a “hammer-like”, i.e. a short body and a long lower shadow. This may indicate a bullish price action. We’ll see.

6 December 2018

The stock market again:

Figure022

(source: TradingView)

SPY has returned to the red resistance. Also, the last candle was a “pin bar”. This may indicate a bullish action during the next days.

3 December 2018

Let us have at the currenty situation in the stock market (I am showing SPY again):

Figure021(source: TradingView)

The market is above the thick blue trendline but note that the market has seemed to ignore it recently. Anyway, the market is testing the “green” resistance. If it is breached during the next days, it will be a bullish double bottom. Of course, we can expect some selling first. Please note, however, that this is only my prediction.

Some selected other ideas (generated by my program): double bottom in ENLK (a small one but still), IBM (I do not like this bearish candle though), ILMN, PTC, VEEV – quite a lot such patterns that correspond to what we see in SPY. I am not sure yet which ones I will buy (if any).

30 November 2018

This is the stock market again (represented by SPY):

Figure019

The market has reached resistance. My impression is that we may expect some sell-off to the support line below but I hope I am wrong. The long green bar two days ago may indicate the opposite, i.e. that the market is decided to proceed north.

Some ideas generated by my software:

– double bottom in WMB (with a breakout of a longer trendline) but the candle yesterday was weak:

Figure020.JPG

– engulfing bullish in CF

29 November 2018

Two signals generated by my code:

– breakout in LM

Figure017

(source: TradingView)

– and a double bottom in AMP:

Figure018(source: TradingView)

But please note the overhead resistance for AMP – so I am not sure I will trade it.

28 November 2018

This is Pepsico (PEP). It is trying again to break resistance and now the engulfing bullish pattern appears:

Figure015

Actually, a few days ago we could see an engulfing bearish pattern – so I am not very sure. And this is ITGR with a possible pennant (in fact,  bought the stock after the engulfing bullish pattern a few trading days ago – so I am only waiting for a breakout):

Figure016

Some new ideas for today “detected” by my program: engulfing bullish pattern in HD, JNJ, JNPR (it does not mean I will buy them: at first, I will have to analyze them a bit more).

26 November 2018

This is the US stock market (represented again by SPY):

Figure014

(source: TradingView)

The market is at the support now and now we see a nice bullish price action. Well, we will see if this will continue.

17 November 2018

So finally I did not buy QCOM yesterday. Instead I bought HSC and ITGR almost on market open (due to the engulfing bullish pattern, among others). I will see how it goes next week because right now it looks promising.  And this is a new signal (in Macy’s Inc; ticker: M):

Figure013

(source: TradingView)

Some trendlines have been breached and an engulfing bullish pattern appears. What I do not like is the recent bearish action. So I will have to think again.

16 November 2018

My program has again generated quite a lot of signals for today. Here is one of them (ticker: QCOM), where an engulfing bullish pattern appear:

Figure012(source: TradingView)

The arrow shows a possible bullish action.

15 November 2018

This is SPY after the market close:

Figure011(source: TradingView)

A gap has been filled and a piercing pattern has occurred (see also my backtesting of this pattern). Does it mean that the market will continue north? We will see.

13 November 2018

I have again received a few “signals” from my program. One of them is a bullish engulfing pattern in ticker IAC:

Figure010(source: TradingView)

Note that this occurs at a bottom of a potential bullish wedge – perhaps even a pennant considering the action before this channel. I will have to investigate the set-up a bit more – maybe I will buy the stock.

9 November 2018

A few days ago my program generated a “double bottom signal” for NU Skin Enterprises (ticker: NU) with a warning: “possible bearish candle”. This is shown here:

Figure008(source: TradingView)

I decided not to enter. This was a good idea because this is what happened yesterday:

Figure009(source: TradingView)

This illustrates that a breakout does not guarantee anything.

By the way: today my program found a double bottom in VNO.

8 November 2018

My program has generated plenty of “buy-signals” for today. This is one of them, Darden Restaurants, ticker: DRI:

Figure007(Source: TradingView)

Looks like a double bottom. Perhaps I will consider to buy it even though the long upper shadow may indicate some weakness. Besides, my software says: a double bottom in SNPS, SABR, NUS, MIK … I do not like some of them though. E.g. I can see some possible resistance on the way. Anyway, I will think again.

7 November 2018

S&P 500 index has broken the resistance lines during the past two sessions:

Figure006(Source: TradingView)

But can you see the gap that has been just created? It is possible that the market will decide to fill it. Therefore we can expect a short sell-off soon with a possible testing of the blue resistance. Perhaps this gives a chance to enter some long positions. Well, we will see.

3 November 2018

I have added results of backtesting of the piercing pattern. This is a bullish equivalent of the dark cloud cover discussed below.

2 November 2018

This is SPY again (or S&P 500 index) on the daily scale:

Figure005(source: TradingView)

As predicted on 28 October (see below), the price has really jumped from the red support line and returned to the blue resistance. Now we can observe the dark cloud cover candlestick pattern (see the ellipse). This might be a bearish signal. On the other hand, the dark cloud cover pattern is not a strong signal so it does not mean that we can expect selling now. Well, time will tell.

31 October 2018

Some time ago I started to short NZDUSD. It moved nicely below an “old” support lines, which is depicted on this weekly chart:

(source: TradingView)

In addition there are even more resistance lines above, which supported my entry. Nevertheless, this is what is happening now (on daily)

(source: TradingView)

The pair has been down moving in a nice channel (green lines). Good for me. On the other hand, the price is testing now the resistance and this is a second attempt in a few days! (see the black ellipses) Such increase of frequency may indicate a breakup coming soon. Also a few days ago we could see a hammer (a bullish candlestick). Should I cover my short position now? Well, I can still give it a chance and wait until some bullish action takes place and then leave.

30 October 2018
Update of SPY: I have sketched two green lines that may indicate a bullish wedge that is forming right now. If the price closes above the upper green line, it will be a signal to buy. Well, there is still the blue resistane above that may damage everything. Besides, there is no guarantee that the break-up will occur so we have to wait, I guess.

(source: TradingView)

28 October 2018
This is daily price of SPY (whick mimicks S&P 500 index). The price is approaching the red thick support line. Is it the end of the bearish trend and we can expect buying again? But note that the thick blue line: it has a long history so it may be a strong resistance. Anyway, we will see.