Trader’s Narrative

Let’s do a quick review of this week in the markets:
New High-Lows Indicator
I mentioned on Tuesday, the High-Low Indicator had fallen to less than 5%, flashing a bright red light signal for an inflection point. Last time this indicator had pinpointed a swing low almost to the day so I was naturally listening when it […]

Most people assume automatically that a sustained interest rate cut campaign by the Federal Reserve has obvious consequences for the stock market, the dollar, commodities and gold.
The common line of thinking goes that interest rate cuts will help the market, by making equities more attractive relative to bonds, hurt the dollar by making it less […]

I didn’t lose any money in the implosion of E*Trade, but I still wanted to take a look at what happened from a technical analysis perspective to see if I could pick out any warning signs.
Here is the chart of E*Trade Financial (ETFC) prior to any nasty stuff:

Meandering with a mazy motion and rangebound - […]

Let’s see if the new high-new low indicator can do it again.
About a month ago (November 21st to be exact) I noticed that the new high-new low indicator was flagging an inflection point in the market.
As a quick refresher, the new highs-new lows indicator is calculated by taking the new highs in an index or […]

This week the financial giants Goldman Sachs (GS), Bear Stearns (BSC) and Morgan Stanley (MS) will be releasing their quarterly earnings reports.
I’ve been patient and hopeful with this sector since it has been showing the classic signs of oversold extremes.
But each time it is given a chance to bounce back, it only musters a […]