In the stock market today, traders use a number of different techniques to help them identify which company will be a good stock pick. Technical analysis is widely used to understand or predict how a particular stock may move. Technical indicators are used to help determine whether an asset is trending, and in which direction it is doing so.
Successful investing requires that traders have a strong will, endless supplies of patience and personal restraint, and a talent for knowing the right timing for making trades. Finding these characteristics within you can be hard, so it’s good to know that they can also be found by committing to comprehensive research and chart watching.
U.S. stock indices finished mixed on Wednesday. While the NASDAQ remained firm throughout the day on the heels of strong earnings from Apple, the S&P 500 floundered because of weaker financial stocks. Traders are nervous over the outcome of the proposed financial regulation bill before Congress.
The June E-mini S&P 500 finished lower for the week after forming a closing price reversal top, signaling the possible start of a 2 to 3 week break. This weak close was the only lower close out of the big three indices, creating a divergence which may be another signal that this strong rally has finally reached at least a short-term peak.
It’s been a while since my last charting session, although, with the most recent market moves, I felt it better to keep on the watch and see what develops.
Yesterday I produced a video on how to trade divergences in the S&P 500. Today, I'm following up that video with a divergence I see developing in one of the biggest tech stocks in the world, Apple (AAPL).
Many investors thing it's axiomatic: Gold moves in lockstep with inflation. But the real story is more complicated than that. Brad Zigler explains gold's recent relative weakness.
