Back in the days, on the Commodities Exchanges, we had no social media and little in the way of technical indicators. But what we had was PURE price action.
In that spirit, today, we have everything a trader could hope for, and probably too much of it.
That does not mean, though, that we do not have a way to track the markets in a simpler fashion - and do it with some pizazz.
Geoff, Keith and I all come from the floor. As a result, we use the notion of pure price in our proprietary indicators. We look at pure price action with phases. We look at momentum, or a derivative of price, with relative strength gauges. In addition, we look at price leadership or under/overperformance using benchmarks.
In Monday's episode of StockCharts TV's new shortform series Your Daily Five, I cover the four indices, gold, silver and one stock. With regards to pure price, , I look at the phase of each of the indices. With our Real Motion indicator, we look for anything disproportionate between price and momentum. Then, with our Triple Play indicator, we look at several different benchmarks to determine whether the instruments I cover are under- or over-performing. We also go over actionable information for trading gold, silver and Bluebird Bio (BLUE), a biotech stock.
Watch it here:
- S&P 500 (SPY): Rallied into resistance at 287-288. Momentum is also into resistance, so watch for a hold of 285 to stay healthy
- Russell 2000 (IWM): Rallied right to the 50-DMA. However, momentum gained and this is nearly in line with SPY's relative performance
- Dow (DIA): In an unconfirmed recuperation phase with momentum and price performance into resistance. 235 resistance then 237.45. Support 225-226
- Nasdaq (QQQ): Ran into resistance at 216, with momentum slowing and relative performance beginning to show some fatigue
- KRE (Regional Banks KRE): 37.52 resistance with momo also at resistance
- SMH (Semiconductors): Ran into resistance at 134, with momentum still okay and relative performance beginning to show some fatigue
- IYT (Transportation): 150 resistance as this approaches the 50-DMA. Momentum gaining though, while price performance still lags
- IBB (Biotechnology): Momentum indicators hit the highs of 4/20. Plus, this is beginning to show some fatigue versus the SPY
- XRT (Retail): Big breakouts everywhere. Amazon has helped this sector. For now, the place to be
- Volatility Index (VXX): Sitting right on the 50-DMA
- Junk Bonds (JNK): 96 support to hold. 98.35 resistance
- LQD (iShs iBoxx High yield Bonds): More sideways than negative at this point
Mish Schneider
MarketGauge.com
Director of Trading Research and Education
