Sunday, October 16, 2011

Technical Picture - Best Weekly Performance since July 2009


The broader market scored its strongest weekly gain since July 2009 and the Tech heavy Nasdaq had its best weekly performance since March 2009. A commitment early this week by leading eurozone officials to develop a comprehensive plan intended to stabilize precarious conditions and shore up capital at European banks sent a strong signal to global investors. It also got the week started on a strong note. The stock market rallied more than 3% on Monday. JPM results were a drag on the banking sector mid-week. Strong results from Google on Thursday night, helped prices press higher on Friday, even though we are hitting up against resistance.

Earnings will be key this week as many Tech heavyweights are scheduled to report including AAPL and INTC on Tuesday. Markets are overbought and will correct soon.


LNKD is starting to make a move ahead of earnings scheduled for Nov. 3rd.

OVTI carved out a bearish reversal bar on Friday, following the disclosure that their video chips have been replaced by Sony chips in the new iphone iOS4. Unconfirmed by OVTI. Speculation that maybe Apple used more than one supplier for its iOS4 video chips.

4 comments:

Ashish said...

Hi Jamie,

Could you explain how and why you use both the 5 and 1 min charts in tandem with the 15 min chart. It appears to me that the base is usually visible on the 1 min chart if it is also visible on the 5 min chart.

Thanks,
Ash

Jamie said...

Ash,

I agree that the base is visible on the lower timeframes, but I also need to see the candlestick patterns on my anchor charts. A reversal bar on the anchor chart can keep me from taking a trade on the lower timeframe, if I judge that it is going to be a micro move. Also, candlestick patterns are more meaningful on a 15 minute chart than a 1 or 5 minute timeframe IMO.

Ashish said...

Actually, Jamie, I agree that the lower timeframe is crucial. My question was why do you use both the 1 and 5 min charts in your trading (this is based on my understanding from your blog posts). A good base on the 1 min chart is almost always visible on the 5 min chart.

Thanks,
Ash

Jamie said...

Hi Ash,

You're right, you don't need both, but I like to trade SPY and QQQ on 5 min. and ES and NQ futures on 1 min. It's all a matter of comfort and preference. Most people like to trade futures on tick charts, but it's impossible to see reversal bars from tick charts. So I stick with candles.