Weekly Commentary

publication date: Aug 24, 2019
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NOTE;  All posts are opinions only.  No investment advice is given.  Consult with a financial adviser and do your own due diligence before trading.
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Market Summary for Week Ending January 26, 2020

 

This past week (1/21-1/24) was the best trading week we've had in a couple months. Our chart system was 9 for 10 in picking short-term swing trades (long and short) on $SPY, as well as individual securities.  All trades were posted in REAL-TIME for subscribers at tradingideas.info.

 

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Chart patterns and signals worked exceptionally well, yielding profitable trades in both directions and on multiple indexes and equities.  As early as Wednesday, subscribers were alerted to a developing Megaphone Top.  By Friday's open, it was clear that a H&S Top was also imbedded within the Megaphone pattern.  $SPY prices dropped sharply to the lower trendline, then bounced, then broke below the bottom of the megaphone, opening the door for lower prices early next week.

 

 

As of Friday's close, several individual stock charts had Sell Signals.  15min charts of the 3 largest-cap stocks ($AAPL, $GOOGL and $MSFT) are all showing similar chart patterns with bearish MACD back-kisses in progress:

 

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There's an old saying on Wall Street:  As goes the first week of the New Year, so goes the rest of January.  Equities experienced sharp volatility during the first week of January but generally moved higher... and this continues to be the case as we move into the final days of the month.  More volatility is expected next week.  In sum total, the charts are indicating lower prices Monday morning with some sort of Gap Down at Monday's U.S. market open.  However, the remainder of next week is not as clear.  The Federal Reserve continues "permanent" injection of about $4B per day into the debt market (QE4), much of which ultimately makes its way into equities.  Furthermore, the daily $SPY chart (so far) remains bullish and the uptrend is undamaged.  Much depends on what happens with the coronovirus, and with additional volatility expected next week, traders are advised to monitor charts frequently for potential turning points.

 

 

 


 
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