Blog Posts Tagged with General Market Overview

Trade School: Exploring the Impact of the Bearish Engulfing Pattern

Here's another really good video from Dr. Duru. In addition to doing an insightful technical analysis review he also shows how he uses the following SwingTradeBot features:

Reading Today's Technical Damage via the Scans Page and General Market Analysis Page

Back on February 8th I wrote about the negative divergence I noticed in one of my favorite indicators - the percent of stocks above their 50-day moving averages.  If the market is having a healthy advance you should see a lot of stocks participating.  That inidcator should be making higher highs along with the indices.  The divergence in that indicator is a sign of a rally on poor breadth.  

That divergence has been nagging at me since January but I've felt like I had to be a bull given the indices' stubborn advance.  Well today it felt like the music stopped in a game of Musical Chairs and people were scrambling to sell.  I thought last week's Fed decision to raise interest rates might have been the catalyst for a selloff but that didn't happen (and perhaps that was too obvious).  Thankfully my nervousness had me keeping tight stops and I shorted some QQQ ahead of the Fed meeting.  I was actually thinking about covering that short after this morning's gap up -- good thing I didn't!

I thought I'd follow up on that previous blog post by showing again how one can get a read on the market's health via some of the site's features.  As I've mentioned, it's crucial to get a feel for the broad market's health & direction.  I'm often asked which scan/signal is the best one -- but there's no one anser to that.  Different things will work in different phases of the market.  (I wrote a bit more on that topic in the FAQ) So I've put things on the site to help me do just that.  

A (Possibly) Disturbing Divergence on the General Market Overview Page

I've been noticing this while reviewing the Genreal Market Overview page for several days now and wanted to highlight it.  I've written several times about how I use the "Percent of Stocks Above their 50-Day Moving Averages" (similar to Worden's T2108 indicator) as an overbought / oversold indicator.  And I like it much better to signal oversold than overbought. 

How I Use SwingTradeBot

I created this site to help me manage and speed up my nightly stock research.  Here I'll share how I'm currently using the site as a way to help others see how everything here ties together. My process consists of a few general categories:

• Analyzing the broad market
• Finding new trading candidates
• Managing positions that I currently hold
• Managing / monitoring my watchlist