Monday, April 07, 2008

Two Early Morning Themes to Start the Week

* Knocking at the Door of Long-Term Resistance - This chart of the June ES futures is annotated with the number of NYSE, NASDAQ, and ASE stocks making fresh 65 day highs (green numbers) and lows (red numbers). You can see that we had many fewer lows on the market's second dip down and, this past week, new highs have expanded. A breakout above the 1400-area resistance on an increased number of stocks making new highs would be a bullish development for this market. The market has behaved well since registering an overbought signal in my Cumulative Demand/Supply Indicator; that tends to occur during strong bull legs in the market. We need to see an expansion of Wednesday's level of 455 new 65-day highs to keep the rally going.

* Drumbeats of War? - The report from Debka suggests that the U.S. and Israel are coordinating a pending military action against Iran. This source has been wrong before on the Iran issue. Still, this report from Britain perked up some ears, especially given recent Israeli decisions to distribute gas masks to the population amidst week-long civil defense drills.

* A Note of Thanks - Shout out to Business Week for its recognition of Trader Feed as one of the top financial blogs.


lucien said...

Hey Brett

Thanks for your awsome trading blocks, websites and books.

I'm very fond of your market sentiment indicators and very interested in your setup:

- what trading platform(s) do you use?
- how many monitors do you use in your platform setup?
- are you watching the sentiment move in real time all day. Or is that something you check a couple of times an hour, day etc.?
- on what level do you incorporate your sentiment readings, regarding your desicssion making when you making a move into and out of a trade?

Hope hearing from you.

Best Regards,

Lucien van de Donk (Denmark, Europe)

SSK said...

Congrats on the recommendation by Business week!

Firebird said...

Dr. Steenbarger,

Congratulations on your well-merited and hard-earned mention on BusinessWeek.

Please keep up the great work!


Brett Steenbarger, Ph.D. said...

Hi Lucien,

I use e-Signal and Real Tick as platforms; 2 monitors; I watch NYSE TICK, price, volume, Market Delta in real time 1 and 5 min charts while trading. I use those data extensively in making trading decisions. Thanks--