Stock Market News For Trading Week of June 11 2018
Hello, my, fellow stop, trading masters, this, is Lance Jepsen, with gorilla, stop trading dog. What. An awesome. Week, of trading. Last week guys right. On if you're following the action, in IQ. Then. You, know exactly what's going on premium members you, know what's going on in IQ, absolutely. Awesome now one. Thing I wanted to remind. Premium, members is that, when. You go to enter so, you're currently looking on your, screen at s P, Y and this is a daily chart this is the in the one minute timeframe, keep. In mind that, typically. When markets, open. We. Get this, upward. Move okay, not not always on s P Y but whether, you're trading small, caps mid caps there's. A propensity, for a stock, to do well right, when the market opens that's when the, action, takes place that's when things really move and so looking. At s P Y on Friday you could see that here you could see that you, know gap up open, pulls back a little bit but boom but. Right around, I'd. Say about 10:00 a.m.. Eastern. Time is when. The volatility. Generally, starts to dry up so. You have these big volume, big. Moves at first and then, about 10:00, a.m.. Eastern, Time, the. Market starts to dry up and often you get a pullback so just keep that in mind when you're going for your entries, it's. Generally, not a good time to go long. Anything. In, terms, of a swing trade in the. First I would say what, is that like an hour and thirty minutes of trading. Maybe. An hour of trading you, know but. Because. What happens is that you go long something in that first hour and, then after, 10:00, a.m. when the market generally, tends to slow down the volume dries up it. Often pulls back as we, can see what happened here on Friday now, you're suddenly down, in, your, swing. Trade long and now you're in a, position of hoping that's going to come back instead. You want to try to enter your Long's at, the. Low of the day okay, that should be your goal try to get in at, the low of the day so obviously, buying, in that first hour in 30 minutes is generally, not a good thing, to do a market. Could gap down open, and you could start out down really big and then it lives from there so. You, know the world doesn't always work that that, way but most often than not it does and then, you could see the market tends to kind, of, chop. Out and go sideways as. We, go into the lunch hour of trading and then. As the, day wears on and we get into the, after. Lunch hours, then, you start to see the volume pick, up again okay. So, I would, say probably you. Know power hour right. Here at about, 1500. That's where, you.
Know The market really the volume tends to pick back up again and it's, kind of like a dip or rip type. Thing, where, you get into that Power Hour and. It's. In in some ways it's sort of like that first hour and thirty minutes of of, trading, but just, keep those cycles, in mind when you're taking your entries, no. Institutional. Buying or selling was, detected, on the tick last week. The. New York Stock Exchange percent. Of stocks above the 50-day moving average is. At. Sixty, nine point, four nine percent. That favors the bulls the. New York Stock Exchange percent. Of stocks above the 200-day moving average, is at, 60, point six percent that. Favors the bulls. Transports. Are still, in the upper end of this sideways. Trading. Channel. Until. We get a break above sixty six, no. Signal. The. S&P. 500. Two. Minute chart. Look. At that folks a very. Very. Nice, price. Action and look, at the volume, into. That close and, while. The stock. Market. Went. Up you, typically, don't see a lot, of these moves like that on a Friday with such a strong close like you would expect the market to dump right. On a Friday. As traders. Did not want to stay long over the weekend news cycle you don't have that in fact look, at the force index, in that. Last Power Hour of trading I mean. Look at that, kaboom. Very. Nice close. Folks, so. When the market opened, you had this. Resistance. Level here where, the market came back tested, it multiple times a little, bit hard to get a read on this market, it was a little bit you, know erratic, and kind of choppy during. The first, opening. Volley, of trade you've, got this a little, bit of a channel, here, that. Was like okay breakout. And. It came up you had a consolidation. Channel. Right in here then, it broke back down. Retested. This previous, low in here. Rocking. It off it came back up triple, top. Fell. Down again. But. Notice that we got the. Eighth. Period. Moving. Average crossing, above the, 23 period moving average the, red line the blue line crossing, above the red line right here so that was bullish. Came. Back up breakout, for a second, head-fake back. Down. Came. Down to this level right here which really doesn't correspond. To a lot but, then it turned and so. Here we finally, had a pullback I mean we had inkling, of a pullback here with, this higher, low being, put in went, up head-fake came back down Oh kind. Of tested that same level boom. Now, that. Level held and we rose, off of it so now we have, start. Of this uptrend, channel. So. Then we got a breakout, above the previous day's close. Broke. Above this previous, swing. High BAM. And, now it's like okay where's this thing gonna go. We. Don't have we're, out of pattern, because it's transitioning. And then, right into the last few hours of trading we kind of got this nice. Uptrend. Channel. Forming. So. Very nice folks, clearly, the two-minute chart on the, sp500 favors, the, bulls. The. One-hour chart on, the. S&P 500. You've. Got the 13, moving, average crossing, above the, 30, period. Moving average and. This. Period is one hour so it's the 13, hour crossing, above the 30 hour moving, average and that's, really, our buy signal, that's what we like to see and. That. Signal, has held folks ever since that. May. 31st, signal. Very, nice uptrend channel. That. We're currently in on the 60-minute chart we've, got the CTM in our bullish. Uptrend. Color. Band. The. MACD. Looks like it's rounding up although it's still negative. But, clearly. The 60-minute, chart on the sp500 favours, the Bulls the S&P. 500 daily, chart. So. We had this. Sideways. Consolidation. In. Here. That, I've talked about in the last two Saturday, shows, this. Last week we. Got a break above, the. Upper. Wall. Of the consolidation, zone and that was very beautiful because, this, upper wall whenever you have a sideways a consolidation. Pattern it's awesome, folks I mean you may like an uptrend better and I totally get that but when. You have a sideways consolidation, pattern. Like this what do you have you have a very, beautiful. Resistance. Zone that forms, and you have a very beautiful, support. Zone that. Forms, and now you can mark these levels, and trade, them because you know that there's significant, support and resistances, because they've been tested multiple times and that's what a sideways, consolidation channel.
Gives You so when, we had the breakout, on Monday, that was very awesome, we had the parabolic SAR by signal, and you. Could see this markets never look back now. Ultimately, I think at some point once. We get the breakout so so here's the breakout that's a bullish, breakout. At. Some. Point we're I would. Like to see. The. Market, come back you know and. Test. So. That previous. Resistance becomes, support, and then, we get the next move, off of it ultimately. That's what I'd like to see this market do. On. The. TSI, the Green Line is whitening from the red line clearly bullish, the ADX, line we, had across, right. As we were coming up to test that upper. Consolidation. Channel resistance. Level that we talked about in last Saturday show we. Got the breakout the aid. Green. Line really moved above the red line here which is a bullish signal and, look. At what we've got folks we, have the ADX. Rising. So, now we're transitioning, from. A trading market, since, pretty. Much all of May we were in this trading market, and now it looks like we're, transitioning. Into a trending market and that's what the market does a market, goes back and forth between trading. Cycles, and trending, cycles back and forth another, way to think of that is range. Contraction. And range, expansion so. If, you would look at Bollinger, Bands you would see that very, easily so range. Contraction. Right. Is a trading, market range. Expansion is, a trending, market and it goes back, and forth in, fact let me see if I could overlay, the, both. The, Bollinger Bands to let, you see. What I'm talking about, all. Right so here's the Bollinger, Bands, on the, sp500. And. You. Could see that now. We're going into a. Trending. Market so, the white, ADX, line. Down. Here is rising, ok so we're going into a trending. Market and you. Could see that because look at the Bollinger Bands they're, now, widening. So. It's, up to you which way you like to look at that whether, you play the Bollinger Bands whether you look at a trending market versus a trading market whether you look at as range, contraction. Versus range expansion, they're, all saying. The same thing in, any. Event the daily chart on S&P 500, favors, the poles the. SP 102. Our equity, put call ratio look, at the equity put call ratio massive. Moved down over this last week that favors, the Bulls. QQQ. Testing, parabolic. SAR, support. But. Clearly I mean, you know we we we had the exact same thing through, here we had a sideways, at consolidation. Pattern and then a breakout, boom. Start. Favors the bulls the. Russell 2000. So polish folks. PPO. Looks polished the ADA, line see, that the ADX started, to rise on, the russell 2000, before the other major indices, it happened back about mid-may, and look. At that I mean very, very nice, folks. This. Chart favors the Bulls the, US home, construction ETF. ITB. Look, at that monster, move. Folks, it's, retaken. Its, 200-day. Moving average. Huge. By, side candle, short-term, just looking at this going into next week I think you have to say that. This church favors, the, bulls the. Reason, is, that short-term, we're. Looking at this. Like. Trend, channel here. Okay. So even if we kind of fall back test. This lower wall. Right. And then we take, the next leg off of it here I mean we could sit there and bang around and stay within this uptrend, channel it's already retaking its 200-day, moving average. Line. So. Very. Nice unless, this gets cracked this uptrend, channel wall. I think. You have to say short-term, okay long-term this, is just a giant sideways, pattern right, so you would say well long-term, I'm not good to say that this favors the poles yet maybe until we clear this. Resistance. Level here. But. We're just trying to guess the market action for. Trading for, the next five days trading, for the next week only so, I think while, we're in this uptrend channel just. Going over the next five days short-term, you, have to say that, this chart favors the bulls socks. A little, troubling, I mean so bullish, and then on Friday we got, this, parabolic. SAR sell signal. I. Mean I'm not a strict, parabolic. SAR sell, signal, guy you, know I mean I do know that a lot of these signals turn out to be fake on the SAR but. In this case this, is very ominous because. You. Know here's here's the sell signal, and the. What. What's going on is at the trade war with China so. We sell, our semiconductors, cells so, many ships, to.
China That. Depending. Upon how all this trade talk works. Out and counter, tariffs that are put against our country, it. Could really put our chips, in jeopardy. And this. Is one of the reasons why micron, is no longer my. ATM, stock. Right, my ATM stock is a stock that's up trending, very big. Company, very powerful, liquid you could trade it in and out of it very easily and you just could sit there and every time I pull this back you can buy the dip and it goes back up again it's like an ATM, you just keep ringing that thing you buy, the tip you sell the rep well, micron, stopped, being, our. ATM. Stock because, of all this in here this absolutely, broke things down I lost, money on trying. To trade micron, and it just never, worked out after that and this was all the drama with the Chinese and the, escalation. Of a trade war so, when that starts to come back as we saw on Friday and, a, lot of trade. War and tit-for-tat tariffs, and macron, now. Fighting. With, Trump you know in the globalist, banding, together. You. See this move down here and a parabolic SAR sell signal, after this incredible, run-up I would, be very leery of buying. Socks, up in here now. The, candlestick, on Friday is not a typically. Bearish. One you know if it's a big red candle, fine, that's, not a real ominous. Candle. There so I would like more confirmation, maybe. One more day parabolic, SAR signal, here. And then we get maybe like a red candle in, here, and that. Would definitely give, me more confidence, that okay, Sox is gonna go lower so for. Now I have to say no, signal, but it certainly does. Not favor the Bulls. Nasdaq. Advanced, declines in a. Strong uptrend favors. The Bulls S&P. Advanced, a client percent chart in a strong uptrend favors. The Bulls XL, laughs at least it's retaken, its 50-day, moving average, the. PPO is positive. But. Until we clear, I'm. Gonna say this, 28, 50, level. This. Chart does not favor either the Bulls or the Bears, SNP. Retail, ETF, incredible, how well this, thing's doing we have a breakout. Very. Bullish it. Continues, to be bullish as we talked about in last Saturday show I, wouldn't. Want to be chasing retail, in here but, in terms of whether. Or not it confirms, a bullish S&P 500, it does. Confirm, a bullish, S&P 500. The ten-year, US Treasury, yield, going. Sideways after. The previous week's big, drop on Italy, drama no. Signal, for. The week money came out of bonds, and it went into stocks that favors the bulls looking. At biotechs, as our leading indicator, for a risk on or risk off market, I clearly. Think that, you have to say that this favors the poles I mean this is a pretty awesome looking, chart you. Had a double bottom put. In back in here, this. Kind of sideways pattern. Banging, up against the 200-day. Moving average, talked about last Saturday show that break above the 200-day moving average. There's. Very little, resistance. Up here folks and look. At the cmf that's. Beautiful. Rising, money flow so. This suggests, a, risk on market. Which, favors the bulls and it's. Not a real shocker that our markets did so good this last week because we won in, the. Global currency wars, the. US was, able to devalue, its currency more, than any of the other major. Trading partners, that. Favors the Bulls this. Is a bit. Problematic. We, have a negative, divergence between. The. S&P 500 and, the NY ad, so. You could see that for. The last week the, S&P 500. Clearly. Is up. While, the. NY ad, is. Clearly. Down. That. Negative, divergence gives. Three points, to, the Bears the. Russell 2000, is way above its pivot level it's testing, its r1, level that favors the Bulls SNP. High low index flashing, back and forth between red and blue no, signal, the, S&P, 500. Percent, of stocks about the 50-day moving average. Lifting. Off of these. EMA, envelope, lines very nicely the TSI, green line is whitening from the red line this, favors the Bulls looking. At our earnings, for, this last quarter earnings. Are, just I mean the red line is earnings and you could see that it's just lifting. Up very nicely the Trump tax cuts really helped power, that higher even though the Fed was hiking rates.
Their. Earnings have grown, at such a nice level while the S&P 500 has kind of stagnated, that's, pushed the PE. Ratio, on the S&P 500 this gold line down, to twenty four point, zero three. Which. Is the lowest level it's been at since June, of. 2017. Sector. Rotation, for the week showed. Money going into consumer, discretionary, x', the most, and while. The underperformer, was, defensive. Utilities. This white line, that. Favors, the bulls S&P. 500. High beta stocks, - SP 500 low, volatility, stocks, the. Zigzag, indicator, is currently pointing down, that. Means that low, volatility, stocks, are doing a little bit better than high beta stocks, which. Favors the Bears, spwhy. With, the PPO so. We we, had a lot of flags. Here, bullish. Flag breakout. Another. Bullish, flag breakout, if you wanted to call that a consolidation. Channel, instead that's, fine too and you. Could even maybe, call this a sideways, consolidation. Channel. That's fine too we're having a consolidation, pattern breakout. On the next leg up then. We're having another, consolidation. Pattern, break out on the next leg up. So. If this trend continues we, can have another few more up days and then likely get another sideways. Consolidation, pattern, up here but this move. Up and then consolidates. And then the next move up and then consolidates. Clearly. Favors the bowls looking at the PPO we've got the green, histogram, bars which. Also favors the poles the, Vik short-term futures, is clearly within a downtrend, that favors the Bulls folks. Rating, for trading next week is that the, Bulls have, the advantage, over the Bears. All. Right you guys thanks, for listening, love, you and talk, with you soon. You. You.