Technical Analysis
Pullback – A Technical Perspective
Everyone has heard Cramer yell about his favorite stock, usually one which is in the middle of a big rally. And, he always finishes by warning you to buy on a pullback. But, what exactly is a pullback? The answer depends on your investment outlook – trader or investor, long-term or short term. From a [...]
read more »Fibonacci Retracements
Every person who graduated the third grade has heard of the Fibonacci numbers – 1, 1, 2, 3, 5, 8, 13, 21, etc. Each new number in the sequence is created by adding the two numbers preceding it. Surprisingly enough, this sequence has been studied by various cultures throughout history, but its first appearance in [...]
read more »Using Trendlines
In the last post, we went over how to draw proper trend lines. Today, we’ll look at how to use those trend lines to help inform your investing decisions. Steepness Trend line steepness gives you a measure of how quickly buying or selling pressure is accumulating. Furthermore, changes in steepness from one short-term (or sometimes [...]
read more »How to Draw Trend Lines
I realized that, in many of my recent posts, I’ve included graphs with trend lines drawn all over them, but I’ve never defined trend lines on this website. Trend lines are one of the fundamental tools used in technical analysis. All of technical analysis is predicated on the idea that prices trend in one direction [...]
read more »Case Study: J Crew Earnings Beat
To follow up on Monday’s post analyzing my prediction of an earnings beat for MEMC Electronic Materials, we’ll take a look at the first stock I bought using the strategy I discussed in “Picking Earnings Beats“, J. Crew. This post is meant to both reinforce my arguments for my aforementioned earnings beat strategy and to [...]
read more »VIX – CBOE Volatility Index
I alluded to the volatility index (symbol: VIX) about two weeks ago in my market commentary and today I’d like to expound a little more on what it is and how it can be used. The Chicago Board of Exchange Volatility Index is a measure of the implied volatility of S&P 500 options. These index [...]
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