Technical Analysis and Charting

» DanG_6 - The 4 indices/cup and handle

Kirk, the Dow is the only index that still has as upward trending 50 day moving average. Nasdaq and Nasdaq 100 haven't made progress since February and look quite weak. Also I watch an intermediate indicator called MACD which has turned negative for all but the Dow.
Cup and handle is a Bill O'Neil consolidation chart pattern. It is supposed to occur after a sharp runup in a stock. The daily chart starts to form a cuplike pattern (as viewed from the side of a cup) with the handle (sideways movement after the cup has formed) on the right hand side of the pattern. Once the stock breaks out of this "cup and handle", it's supposed to resume the rise in spades! If you look at the recent chart of HWP, you should be able to see this pattern that developed just prior to its recent run-up. Does the pattern work more often than not? Well, Bill O'Neil seems to think so. I'm from Missouri on this one.
- Dan

-- posted by DanG_6

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» TONYBRIG - Dan from Missouri

Good to be that way even if you are leary of
Oneill.
Did you see the list Kirk displayed on the
Suggest a Link category.
This thread is there!

VBOLHH

-- posted by TONYBRIG

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» Jamie2 - T/A site

Good site with live chat, market commentary, articles, info, etc from a T/a perspective:

www.intelligentspeculator.com

-- posted by Jamie2

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» KirkL - T-Theory says "Da Bottom is In"

Others may use a different brand of tea, but this site sure has some interesting graphics and commentary.

http://www.ttheory.com/

Highlight:

Update June 17

The market looks to have made a solid low using the selling climax low concept described below. I would expect that with interest rate fears fading on the recent news and today's Greenspan testimony coupled with the positive earning reports scheduled during July, we will see the recent double bottom base made in the NY Index below hold. Further selling is possible but gradually the longer term uptrend should be restored by the 12 th T's projection until the next "crisis" arrives. I will continue to track all the usual indicators for more information and post any significant findings.

I am doing some "for pay work" today and so don;t have time to check this site out, but the guy has his commentary on record. It would be interesting to read to see if he is any good and post a commentary.... Volunteers?

-- posted by KirkL

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» DanG_6 - Kirk, Terry Laundry?

Kirk, I subscribed to Mr. Laundry's newsletter years ago. He bases everything on some half-baked, unfathomable "T-Theory", which made little or no sense to me. His newsletter made many predictions based on little T's within big T's within even larger T's, and he may even have been right once or twice (though I sure don't remember any specific occasion). I'll pass on this guy.
- Dan

-- posted by DanG_6

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» KirkL - Thanks Dan

Thanks Dan
Chalk it up to another site with pretty pictures!
This is what the net is great for... ask a question and often someone else has done the research and will share!

-- posted by KirkL

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» KirkL - Triple tests?

Driving back from windsurfing tonight, it occured to me that bonds probably trade like stocks and we might be testing the old 6 1/8th % limits....

then I see this chart which suggests we have a successful third test of the low in the DOW trading range... suggesting that we can now move on to new highs.

What flavor tea do you use for these charts?

-- posted by KirkL

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» JenL_3 - Index Comparison

Kirk - Here is YTD chart of

Index comparison

BB mentions that one of the prerequisites in his timing model for THE BEAR Call is that the market first reaches new highs. Does he mean that all the or just some of the indexes have to reach new highs?

Also here is a clickable link to the site that Jamie mentions above:

http://www.intelligentspeculator.com

Nice site Jamie.....Jen

-- posted by JenL_3

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» GoodGuy - Tripple Test

Kirk,

I believe one important criteria for tripple bottom is accompanying lower volume. I do not see that to be the case from the graph. Looks like almost similar volume.

GG

-- posted by GoodGuy

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» DanG_6 - Another viewpoint

I agree with "Goodguy" that the DJIA chart doesn't look like a "triple bottom". A "bottom" implies that a sizeable decline has preceeded it. What's happened in the Dow doesn't qualify in my book. Looks more like a rectangle, though not perfect. The bottom border in the 10400 area certainly supplies support in any case. Should that level fail, a chartist would look for a decline at least equal to the width of the "rectangle". In this case, that would imply a decline at least below the 10000 mark.
- Dan

-- posted by DanG_6

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