Traders' Library Blog

Stocata S&P 500 Analysis: August 26, 2017.

Last week I wrote: "I expected the price gap to be filled within 2 weeks and, it happened already at the end of the past week. We are also very close to the first down target around 2400. Possibly price will go down a fraction lower before there will be a price pullback. There is support from the S1 pivot support of the month, the median line of the up moving pitchfork and the 100-day simple moving average so, I assume we will see some pullback already the coming week. Read my comments on the weekly chart and monthly chart  for more information regarding the longer term view."

As expected last week, price went a fraction lower on Monday, touching the 100-day simple moving average dynamic support. Tuesday the up retrace started with a price gap and went up to a 50% pullback, a price resistance and the PP pivot level of the month. Most probably the index made the top of the correction and resumes the down move. The next down target is the S2 pivot support at around 2380. I assume this will take a couple of weeks. Read my comments on the weekly chart and monthly chart  for more information regarding the longer term view.

Sylvain Vervoort   http://stocata.org/

Stocata S&P 500 Analysis: August 19, 2017.

Last week I wrote: "The index came very close to he gap but, is not yet filled yet. I believe the gap will be filled in the coming two weeks with a move further down to the median line of the up moving pitchfork, the 100-day simple moving average and the low side of the Bollinger band. There is a negative divergence with higher tops in the index and lower tops in the indicators. The next down target is around 2400. Read my comments on the weekly chart and monthly chart  for more information regarding the longer term view."

I expected the price gap to be filled within 2 weeks and, it happened already at the end of the past week. We are also very close to the first down target around 2400. Possibly price will go down a fraction lower before there will be a price pullback. There is support from the S1 pivot support of the month, the median line of the up moving pitchfork and the 100-day simple moving average so, I assume we will see some pullback already the coming week. Read my comments on the weekly chart and monthly chart  for more information regarding the longer term view.

Sylvain Vervoort   http://stocata.org/

Stocata S&P 500 Analysis: August 12, 2017.

Last week I wrote: "Not much change, Holidays? I expect the gap at the beginning of the last move up to be filled. We still have an exceptional last engulfing bearish pattern at the top. If this is confirmed the coming week(s) it may be the start of a downward reaction phase. It looks like we have a short term negative divergence with, higher tops in the index and lower tops in the indicators. On the other hand there still is a Fibonacci target at 2534 that we should not exclude because, we see a pennant price pattern, basically a continuation pattern. The first down target is 2430 closing the gap at the beginning of the last up move. Read my comments on the weekly chart and monthly chart  for more information regarding the longer term view."

The index came very close to he gap but, is not yet filled yet. I believe the gap will be filled in the coming two weeks with a move further down to the median line of the up moving pitchfork, the 100-day simple moving average and the low side of the Bollinger band. There is a negative divergence with higher tops in the index and lower tops in the indicators. The next down target is around 2400. Read my comments on the weekly chart and monthly chart  for more information regarding the longer term view.

Sylvain Vervoort   http://stocata.org/

What my fortune Cookie Said

I’m on a date. Attractive lady. Thai restaurant. The meal is over.

 

Being an American Thai restaurant, they bring fortune cookies at the end. I never eat them or crack them open but the lady insisted I see what my fortune was.

 

So I ripped open the package and cracked open the cookie. I gently pulled out the small slip of paper and spread it flat on the table.

 

It said, “Consider gain and loss, but never be greedy and everything will be all right.”

 

I thought that was awesome!

 

Doesn’t that sum up trading?

 

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The best place to keep up with my specific stock trades is my weekly video newsletter, TradeSmith. Please check it out here.

Stocata S&P 500 Analysis: August 5, 2017.

Last week I wrote: "Last week I mentioned: "I expect the gap at the beginning of the last move up to be filled." The last gaps were filled with a low price on Thursday while, making a new higher high the same day. We now have an exceptional last engulfing bearish pattern at the top. If this is confirmed the coming week it may be the start of a downward reaction phase. It looks like we have a short term negative divergence with, higher tops in the index and lower tops in the indicators. On the other hand there is a Fibonacci target at 2534 that we should not exclude. The first down target is 2430 closing the gap at the beginning of the last up move. Perhaps Monday it will already be clear which way we are going the coming week. Read my comments on the weekly chart and monthly chart  for more information regarding the longer term view."

Not much change, Holidays? I expect the gap at the beginning of the last move up to be filled. We still have an exceptional last engulfing bearish pattern at the top. If this is confirmed the coming week(s) it may be the start of a downward reaction phase. It looks like we have a short term negative divergence with, higher tops in the index and lower tops in the indicators. On the other hand there still is a Fibonacci target at 2534 that we should not exclude because, we see a a pennant price pattern, basically a continuation pattern. The first down target is 2430 closing the gap at the beginning of the last up move. Read my comments on the weekly chart and monthly chart  for more information regarding the longer term view.

Sylvain Vervoort  http://stocata.org/

Why You Shouldn’t Be Afraid Of Stock Market Drops

Imagine the stock market plunging. You look at your brokerage account online and you get sick to your stomach watching the red number get larger.

 

You are frozen. You hate the market going lower but you hope it will turn around soon.

 

You’d hate to sell your positions and take a loss.

 

You’d hate to sell your positions and then watch the market skyrocket. That would be terrible!

 

But you don’t have to suffer at all! There are things you can do right now to protect yourself against such a problem.

 

I’m holding a FREE webinar next Monday at 11 AM PT. You can register here now.

 

I’ll be showing you why I think we will see a drop in the market.

 

More importantly, I’ll show you how to protect your portfolio from being ravaged by the market. You will receive specific instructions.

 

Click here to register for free.

 

Oh, and I’ll also show you ways to make money!

 

I will be sending out a replay if you can’t make it but you have to register to get the link.

 

But you have to register by  clicking here!

 

 

See you there!

Five Reasons The Stock Market Will Drop

 

I’m looking for the stock market to drop soon. Here’s why in a nutshell:

 

     1. Seasonally, September is the worst month and August is no prize.

     2. We haven’t had a 5% correction in over a year. That is an extraordinary stat. The market normally has at least one 10% correction each year.

     3. The market is complacent. Volatility is very low. People are falling asleep. Of course, that means that the market is about to become more volatile and I think the volatility will be to the downside.

     4. Sentiment is very very bullish. Surveys show that market participants are overly bullish. If everyone is bullish, who is left to buy?

     5. Momentum is waning. Momentum indicators are getting weaker which usually means that the market is about to dive.

 

I’ve put together a free webinar next Monday at 11 am PT on Will the Stock Market Collapse?

 

I will go into detail on the five points above plus much much more analysis.

 

Most importantly, I’ll show you how to hedge your existing portfolio and how to make money in the dip.

 

But you have to register by  clicking here!

 

 

See you there!