Stocks Explode Higher As Small Caps Lead The Way

Stocks rallied strongly today with every major index sharply higher. Over the past 2 weeks the Russell2000 (small caps) have been leading the stock market higher as can been seen in the rising relative strength line in the lower panel.
Stocks usually put in a significant low around October and rally into the end of the year. This is a strong seasonal tendency that happens more often than not. I

Gold Surges Higher

The gold market rallied sharply today closing above the recent trading range. The ETF GLD which tracks gold showed a nice increase in volume confirming the breakout. You'll notice that the recent consolidation developed right at key support (green line)  which tells me that the bulls are once again in control of this market.
If you look at the commitment of traders data (not shown) you will see

Euro - Turns Lower

Last week I wrote about the heavy resistance area the Euro was testing. This resistant zone is a combination of Fibonacci retracements as well as a support low from a few months ago. As you can see in the above chart, the Euro put in a reversal bar today suggesting that lower prices are likely. A move back above today;s high would negate the bearish outlook.

AAPL ( Apple Inc) - Watch This Stock Tomorrow

Apple Inc (AAPL) is one of my favorite stocks to trade mainly because it's so liquid and it is a leader of the NASDAQ due to its heavy weighting within the index. The reason I will be watching this stock tomorrow is because we now have an inside day. An inside day is simply a day that has a lower high and higher low compared to the previous day.
What I like about inside days is that they

British Pound - Tests Resistance

Above is a daily chart of the British Pound vs The U.S. Dollar (GBP/USD). This currency's technical picture is very similar to what the Euro is doing right now. The British Pound is at the .382% retracement from points A to B. This Fibonacci number also coincides with major resistance. This is a powerful confluence of technical resistance so be on alert for possible signs of weakness here.

Euro - Trading At An Important Level

The Euro vs the U.S. Dollar has been rallying sharply over the past few days but has not bumped up against a powerful technical resistance level.  This level is comprised of several factors. The low from last July which was once support should now act as resistance. Today's high coincides with a 50% retracement level of points A to C and a .38% retracement of points B to C. This combination of

Stocks Test Resistance

Stocks were up again today with the S&P now testing key resistance. You'll notice the market put in a doji formation which is an indication that the S&P may sell off or at least consolidate. If you look carefully at the above chart you will see that this Doji formation has identified some of the recent tops we have seen over the past few months.
The stochastic oscillator is also in the

Bonds Fail At Resistance

I'd like to make a quick update on the bond market. Above is a weekly chart of TLT. Last week this market formed a weekly bearish engulfment pattern at key resistance. This is a powerful combination and in my opinion I feel the bond market will be heading south in the weeks to come. A move to new highs would negate my bearish outlook. 

Gold - Sitting On Key Support

Above is a weekly chart of gold and in the lower panel is the stochastic oscillator. This market has been in a beautiful uptrend making a clear series of higher highs and higher lows. Right now GLD is testing a very significant support level which is comprised of trendline support and the high from last May.
You'll notice the stochastic oscialltor is in the buy zone and over the past 3 years

Stock Market Update

It's been awhile since I've posted on here so I fugured it's time for an update. Many of you have been writing to me wondering why I haven't posted on here for quite some time and the reason is simply because trading is my passion not blogging. Having said that lets get right to the charts.!
Above is a daily chart of the S&P 500. As you can see the market is now testing some minor resistance at