blue chip bull dog

Nasdaq Big Picture Very Bullish

noreply@blogger.com (Brinkley) — Wed, 15 Feb 2012 14:28:00 +0000

Trade well.

-- Brinkley

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EUR/USD

noreply@blogger.com (Brinkley) — Thu, 09 Feb 2012 16:25:00 +0000

If chart won't enlarge, please use this link: http://screencast.com/t/P4bjitrARJdW

Trade well.

- Brinkley
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Going Going Gold

noreply@blogger.com (Brinkley) — Wed, 01 Feb 2012 14:35:00 +0000

Trade well.

-- Brinkley
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Time to Check Out Natural Gas

noreply@blogger.com (Brinkley) — Mon, 23 Jan 2012 14:26:00 +0000

Will be back soon --

Trade well.

-- Brinkley
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In With the New

noreply@blogger.com (Brinkley) — Wed, 04 Jan 2012 13:57:00 +0000

I hope everyone had a wonderful holiday season and is looking forward to a prosperous 2012. I will be back on the blog next week and will see you all then. In the meantime ...

Trade well.

-- Brinkley
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Buying Opportunity is Setting Up

noreply@blogger.com (Brinkley) — Thu, 15 Dec 2011 16:18:00 +0000

Trade well.

-- Brinkley
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Russell Roulette

noreply@blogger.com (Brinkley) — Wed, 07 Dec 2011 14:55:00 +0000

The chart of the Russell 2000 is working on a nicely defined, if somewhat unorthodox inverse head and shoulders pattern, which should be interesting to watch near-term. The neckline slants sharply upward, which, while not a disqualifier, raises the hurdle for confirmation to occur. Additionally, the whipsaw swings that took place as the left shoulder was forming allow for (but don't require) similar action in the right. Given the structure on the left side, I wouldn't consider the pattern to be invalid unless or until we see a decisive move below the current right shoulder low.

Trade well.

-- Brinkley
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Big Day For the Bulls

noreply@blogger.com (Brinkley) — Thu, 01 Dec 2011 14:28:00 +0000

Trade well.

- Brinkley
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Bounce Likely Near-term

noreply@blogger.com (Brinkley) — Fri, 25 Nov 2011 14:31:00 +0000

Trade well.

-- Brinkley
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$SPX

noreply@blogger.com (Brinkley) — Mon, 21 Nov 2011 15:22:00 +0000

Trade well.

-- Brinkley
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Contest Continues, Coil Tightens

noreply@blogger.com (Brinkley) — Wed, 16 Nov 2011 14:16:00 +0000

Sounds about right.

Trade well.

-- Brinkley
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Mixed Bag, Advantage Bulls

noreply@blogger.com (Brinkley) — Mon, 14 Nov 2011 14:39:00 +0000

Market signals are ambiguous at best right now, with a symmetrical triangle forming in a bull pennant context that presents the pattern most supportive of continuation higher. Add to that increasing numbers of breakouts in recent days and improved action in commodities, and the bulls have a respectable case to make for a push to new highs. It is well worth noting, in fact, that the $NDX has already come within a whisper of its 2011 peak, an unusual feat for a market preparing to roll over hard. That said, from a technical standpoint in many areas, charts and indicators have been clinging to a "no man's land," walking a fine line between bull and bearish scenarios.

As can be seen in the chart below, the $SPX is still probing the underside of the head and shoulders neckline that triggered the correction as well as the 200-day SMA. -- both formidable resistance hurdles that explain the battle for control taking place in the region. As price narrows towards the apex of the triangle, resolution should occur soon, hopefully providing more clarity as to near-term direction. As of now, indications favor the bulls, but it wouldn't take a whole lot to tilt the scales south.

Trade well.

-- Brinkley
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Hairpin Turns

noreply@blogger.com (Brinkley) — Wed, 09 Nov 2011 14:07:00 +0000

Gaps up, gaps down; bear traps, bull traps: getting any significant follow-through or clear signals in the current news-driven market has been an elusive pursuit, at best. In disorganized trading environments, less is more -- if you are trading, consider cutting your position size, stepping up risk management methods, and exercising patience while the recent pandemonium gets sorted out. There have been good trading opportunities in both directions, but taking advantage of them has often required quick responses and steely nerves. Profitable scalps have been plentiful for those trading shorter time frames, while buying the dips and taking at least partial profits on the rallies has benefited swing traders. The sidelines offer safety for those suffering whiplash or with less experience in volatile conditions as well as an excellent vantage point for evaluating the action and compiling a watch list to consider putting to work upon confirmation of a more sustainable trend.

With futures down sharply in overnight trading, the /ES has retraced to an initial support level to keep an eye on today. Note that a pre-market bounce off both a lower channel line and Fibonacci retracement level may prove to be significant in the very near-term, at least.

Trade well,

-Brinkley
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ES Antics

noreply@blogger.com (Brinkley) — Fri, 04 Nov 2011 15:01:00 +0000

Trade well.

- Brinkley
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Enter November

noreply@blogger.com (Brinkley) — Tue, 01 Nov 2011 13:19:00 +0000

Following an epic October rally, the markets are transitioning to a new month with a much-needed pull-back out of short-term overbought conditions. Note in the chart below that the /ES is nearing some good support, where it will be important to watch for signs of buyers stepping back in. In these times of often accelerated and exaggerated moves, we may see this "mini-correction" play out very quickly, and as such, this is an opportune time to be compiling a shopping list to have ready when the selling is exhausted. The present pull-back will also undoubtedly serve the purpose of convincing many bears that the recent run-up was nothing more than a bear market rally and much lower prices are on the way. While anything is possible and there is unfortunately no crystal ball in which to gaze for infallible market prophecies to be revealed, be careful not to underestimate the bullishness of the past month, and the very significant technical signals that registered during the emphatic ascent. While I did take a few short-term short plays over the past couple of sessions, I am very lightly positioned overall and will be watching and waiting for highly probable reentry on the long side. Long-term charts have turned increasingly bullish, favorable seasonality has arrived, and I suspect that we will soon be presented with the next important buying opportunity.

Trade well.

-- Brinkley
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Futures Explode Higher on Debt Crisis Deal

noreply@blogger.com (Brinkley) — Thu, 27 Oct 2011 13:23:00 +0000

Trade well.

-- Brinkley
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Pawing the Dust

noreply@blogger.com (Brinkley) — Fri, 21 Oct 2011 14:12:00 +0000

The bulls are getting restless, having tried repeatedly to break free of the iron trading range that has contained the very volatile action of the past several months. This time, it looks like they just might pull it off, validating the bullish bases scattered throughout sectors that I've been pointing out the past couple of weeks. There are also potentially bullish signs emerging in both EUR/USD and the gold charts. These are still fragile, but certainly worth watching for follow-through.

Trade well.

-- Brinkley
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Nasdaq, the Big Picture

noreply@blogger.com (Brinkley) — Wed, 19 Oct 2011 15:08:00 +0000

Trade well.

-- Brinkley
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Time For a Breather

noreply@blogger.com (Brinkley) — Thu, 13 Oct 2011 13:35:00 +0000

The market has run up hard and fast over the past seven trading days, with scores of stocks logging very big gains and with all the major indices getting some traction above their 50-day moving averages. However, we've now arrived at the upper end of the trading range that has contained the action since late summer, where there is considerable resistance. Additionally, the McClellan oscillators are getting very stretched, indicating that stocks are "overbought" on a short-term basis and need time to consolidate their big gains. It would seem prudent to anticipate some degree of retracement, or at least consolidation, near-term. On the positive side, the basing patterns being put into place are constructive and have the potential to support a new leg up once the existing overbought conditions are worked off.

Trade well.

-- Brinkley
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Watch the Buck

noreply@blogger.com (Brinkley) — Tue, 11 Oct 2011 15:15:00 +0000

Recent weakness in the dollar has supported a spirited sprint higher in stocks. While the buck could have further to correct before all is said and done and stock and sector charts are firming up nicely, the market has run up quickly and needs to consolidate recent gains. Accordingly, it would be prudent to be prepared for the possibility of a near-term ambush.

Trade well.

-- Brinkley
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Busy Intersections

noreply@blogger.com (Brinkley) — Wed, 05 Oct 2011 04:14:00 +0000

Acting like a stunt driver on steroids, the market continued its too fast, too furious thrill ride on Tuesday, doing its best to cram as many cliff-hangers, hairpin turns, and wild boomerangs as possible from bell to bell.The recent volatility has delivered acceleration and exaggeration with a vengeance, and along with it the potential for out-sized gains for the very nimble. For those lacking lightening-quick reflexes and the abililty to hyper-focus in the fast lane, however, the terrain has been treacherous indeed.The intraday swings in both the indexes and individual stocks have been nothing short of breathtaking, with Tuesday's grand finale skyrocket truly something to behold. Stocks that were down sharply in the morning and looked ready to tumble to new lows late in the session instead abruptly reversed up as if shot out of a cannon, racing upwards to close with significant gains on the day. A Greek rescue? A Bernanke sneeze? A pundit's proclamation? Or possibly something infinitely more interesting, and far more reliable? Take a look at the charts below and see what you think. Major indices simultaneously found important support levels, and the intersections and crosscurrents in the $SPX chart in particular are fascinating and compelling.

It's too soon to know if Tuesday's late-day rally into the close was a bear market rally destined to fail as quickly as it appeared, or if a significant low was printed as converging support levels came into play. The $VIX and internals were not confirming the early weakness, and the underlying bid was palpable even as the indices were mired in red. This is going to be an interesting month.

Trade well.

- Brinkley
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Volatility Rising

noreply@blogger.com (Brinkley) — Tue, 04 Oct 2011 13:15:00 +0000

Trade well.

-- Brinkley
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Focus on the Forest

noreply@blogger.com (Brinkley) — Thu, 29 Sep 2011 03:51:00 +0000

It can be challenging in disorganized and volatile market environments for traders to cut through the proverbial "trees" and keep an eye on the big picture. It is critical, even for shorter-term traders, to continually attempt to stay grounded by eliminating as much "noise" as possible when analyzing charts and market action. But perhaps most important of all, during those times when no matter how much pruning you've done you still can't see a clear pathway ahead -- then it might be time to question just why you are walking through the woods in the dark in the first place.

For the past two months, the market has been essentially moving sideways, but has managed to do so in an extremely volatile, whip-saw manner that has had little method behind its madness. Adding yet one more indicator, one more pundit opinion, or one more "guru" call to the mind-numbing search for rational markets isn't going to speed up a resolution to the violent consolidation phase now taking place. It will break out or break down on its own timetable and all we can do is wait, and depending on individual trading style and experience, take from it what we can while it prepares for the next phase. In the meantime, it is best to keep it simple: the market is moving sideways; it is exceptionally volatile; the process is triggering many conflicting signals; preservation of capital is paramount. It is not necessary, and often not advisable, to always be trading in every situation. If you are confused, or frustrated, it is unlikely that you will trade well, so do not hesitate to wait for more clarity. It will come.

Take a look below at the GLD chart represented on a line graph based on closing prices. It is clean, simple, and can be a very useful tool to gain some perspective when things seem overly complex or confusing. I will often use this approach in noisy markets to assist in zeroing in on key elements.

Trade well.

-- Brinkley
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$SPX

noreply@blogger.com (Brinkley) — Fri, 23 Sep 2011 13:25:00 +0000

Trade well.

-- Brinkley
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$COMPX

noreply@blogger.com (Brinkley) — Tue, 20 Sep 2011 14:08:00 +0000

Trade well.

-- Brinkley
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