Spearman Indicator – Flashing a Sell Signal

May 23, 2011

One of the newer oscillators on the Bloomberg platform, the Spearman Indicator has done a fairly good job at showing potential points to buy or sell. Here we are looking at the S&P 500 index. The chart below shows that the indicator has flashed a sell signal recently and it is moving toward an oversold level. Both oversold and Read more

A Picture Tells a Thousand Points

March 11, 2008

The quick and the dirty of it: The markets (DJIA, S&P500, NASDAQ) are setting up for an ugly fall and investors are sensing it. The growing indigestion is pointing straight toward the support line of 11,635 for the DJIA. This particular point is a problem as there is no support shown during the past 2 years until it reaches 10,683. Also, a simple Fibonacci retracement (blue horizontal lines) shows that the DJIA has stayed close to the retracement points rather consistently.

That said, unless we see intervention that is decisive and convincing by the Fed, a breakdown is inevitable. Earnings, news and recent policy has not done anything to support the averages. This time, we need to see a full-court press that is a unified effort between monetary policy and government initiatives. Anything less that a miraculous plan pulled from Lincoln’s hat will be met with negativity.

(click to enlarge chart)
Dow Crash 2008 ?

TDI Episode 47: Knight to the Rescue

March 10, 2008

Guest: Tim Knight is founder of Prophet.Net, a wholly-owned online software company that was acquired by INVESTools in January 2005; he presently serves as Senior Vice President of Technology for INVESTools. His recently-published book, Chart Your Way to Profits, offers a solid introduction to both technical analysis and the ProphetCharts product.

Formaltim_2An active trader and chartist, Tim founded Prophet in 1992 to provide market data to self-directed investorsiTunes Subscribe using stand-alone technical analysis software. With the advent of the Worldwide Web, he envisioned providing the power of these expensive software packages with browser-based convenience – enabling traders to focus on their analysis, instead of worrying about software upgrades and database issues. His online technical analysis suite at Prophet.Net delivers on this vision and more.

In his trading today, Tim relies on technical analysis as the primary basis for his investment decisions, and he has leveraged his passion for the markets to fuel the innovation for which Prophet.Net is known. In fact, Barron’s and Forbes Magazine have consistently named Prophet.Net the “#1 Web Site for Technical Analysis.”

Before starting Prophet, Tim was Vice President of Technology Products at Montgomery Securities in San Francisco, where he led the development of an institutional online-trading platform. Additionally, he has held various positions in marketing management at Technical Tools and Apple Computer, and is the author of 20 computer trade books. Tim is a graduate of the Santa Clara University Honors Program and holds a bachelor’s degree in business management. He lives in beautiful Palo Alto, California with his family.

The Disciplined Investor

Listen in to this episode as Tim Knight explains his 3 rules:

  • Never Lack a Stop Price
  • Never Do an Ad Hoc Close
  • Never Act in the First Thirty Minutes

Charts that were discussed in this episode:
INDU Chart1
and INDU Chart2

Stocks Mentioned in this Episode : (AAPL) (QQQQ) (YHOO) (SAFM) (GOOG) (FNM) (FRE) (SPY)