is ... YES - Another Profitable Day!
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No, I think if it gets that low again, it will just keep going lower. Notice that the rally today was on rather weak volume. Expect a down day tomorrow.
IT sure as hell ain't the news! I've seen earnings reports come out with the earnings up 10% and the price of the stock plummeted down 30%. Why? Because there are many many things that are reasons why people buy and sell and the least of them is the news. But, the daily, hourly, and 15-minute price charts for any stock will always accurately reflect aggressive buying and selling and that is the direction you should be trading in. I don't care if you believe that or not! It's the truth!
If you look at the weekly chart for ICPA you will see that this stock has been going DOWN in price for more than three years now! So, if the news drives the price of the stock does that mean that all the news of the last three years was BAD NEWS? OF course not! So, the news does not really matter at all. What drives the price of a stock is aggressive buying or aggressive selling. That's it!
http://stockcharts.com/h-sc/ui?s=ICPA&p=W&b=5&g=0&id=p20744053362&a=265049267&listNum=6
IT's a strong bear market. There are better trades out there.
Not at the current price level. In my opinion, it's due for a nice price correction now.
The news is totally irrelevant. The only thing that moves the price of a stock is aggressive buying or aggressive selling.
If it does, the charts will spell it out in advance. They always do.
That's very true! That's why I watch moving averages that should not really have any significance like the 50 and 200 day MAs. The whole world watches them and I want to know what they are thinking.
You are certainly welcome to your own opinion.
I did not specify that. Here's the chart: http://stockcharts.com/h-sc/ui?s=ENTB&p=D&b=5&g=0&id=p29901679291&a=269546912&listNum=6
Would you care to be specific or is that just your opinion?
News is always irrelevant!
I just did this chart for somebody recently. http://stockcharts.com/h-sc/ui?s=DNAD&p=D&b=5&g=0&id=p04581345286&a=271338172&listNum=6
I don't have time to do a chart right now but, I did look at the daily and it's possible that we are seeing a selling climax that would result in a V-bottom formation. That's just a guess however.
Good trade! Yes, there is a bearish divergence now on the hourly chart and in my opinion, it's most likely headed lower. I just looked at it again and the hourly and daily charts appear to be in conflict. That never lasts long. The hourly chart will prevail for the short-term so, I'll watch it for a while and see what it does. It's possible that there will only be a short decline in price. Too early to tell.
Yes, double tops are usually followed by a significant drop in price. Right now, it looks to me like we will see a retest of $0.012 and if it supports there a second time (and I think I will) then we could see a rise in price to the 84-day EMA and possibly even the 200 day MA before it reaches firm resistance and another price decline gets underway. At this point, I would expect to see the price go much lower before it achieves new highs. One reason is that so far we only have one leg down off the double top and at least three are required and usually 5 occur. So, I think a drop in price to the $0.0025 to $0.0050 range makes sense but, anything can happen. If we get firm support on a retest of $0.012 and the market attracts new buyers at that point, we could still have a false double top and new highs could be achieved. This is all speculation on my part because there is no way to accurately predict either of these scenarios at this point. The only thing I can tell you with some certainty is that I believe we will see a retest of $0.012.
And ... you know all of this how? Here, let me help you out a little regarding the news! Over the last three years according to the weekly price chart, UCHC has fallen in price from $0.30 to well below $0.0006/share. So, if the NEWS truly drives the price of the stock, then one can assume that all of the news since November of 2009 was BAD NEWS. Is that true? Of course not! Therefore, is it possible that News has absolutely nothing to do with the price of a stock? The only thing that drives the stock price is aggressive buying or aggressive selling. That is the only thing that moves the price. And ... the only place to get a true picture of the effect of the buying and selling is on the chart! When you know how to read a chart, you can even tell in advance which way the price will go based upon what the chart is reflecting at the current time. I rest my case!
Here an hourly chart for that time frame ... what do you think? The chart will always give you better buy and sell signals than the news or any other system! http://stockcharts.com/h-sc/ui?s=UCHC&p=60&st=2012-04-01&en=2012-05-01&id=p37990554172&a=271380376&listNum=6
If you want to know the TRUTH about the news, then take ANY Two Year daily price chart on ANY STOCK and look up all the news articles on that stock over that two year period and plot the dates of the news on that chart. Then stand back and just observe how the news actually does affect the price of a stock. But, I doubt if you will do that because (in my opinion) you are not really interested in learning the truth.
There are such things as FALSE cup & handle formations. So, anytime there is a possible chart pattern developing, it is always wise to move off the daily chart and see what is going on in the world of the microcosm. So, lets take that advise a step further an having already investigated the Daily and Hourly charts, let's see what the 15-minute chart unveils, shall we? http://stockcharts.com/h-sc/ui?s=ENTB&p=15&yr=0&mn=0&dy=5&id=p93605158566&a=271376368&listNum=6
Obviously the 15-minute chart seems to favor the bulls but, of course this is a very short term view of the market. I would venture to say that the price on Monday will continue to venture higher until it meets with resistance and an over bought market.
That's a BIG 10-4 ... Patience is the key and when patience is exercised the market will always reveal and reflect on the chart what is actually happening a lot more clearly as time goes by.
Thank you so much for the kind comments! They are appreciated.
Excellent observations. When in doubt, stay out. One of the hardest things to do is to try to pick a bottom in a downtrending market. I have it down to almost a science and that's why I'm hesitant here because all the cosmic tumblers are not in place at this juncture for a confirmed bottom in my opinion.
Perhaps very probable (is more accurate) at this point but there are false cup and handle formations so, it's not a confirmed formation until there is actually breakout above the top of the cup.
Go for it!
An excellent observation. Becoming a good technical analyst requires noticing how the various indices behave and trying to figure them out and even improve on them. Let me pose a question to you ... what rules say that a 14-day base number for the RSI is the correct number to use? I agree that the rest of the world seems to use that number but, I guarantee you there are many technical analysts who have abandoned it in favor of a different number which the arrived at following their own research and back testing which proved to them to be a better number for the way they trade. You may have noticed that I choose not to not to follow blindly in the foot steps of the rest of the world on this one and instead I much prefer to take the advice of Earl Nightingale who said: "There has never been a time in the history of the world when the majority of the people were right." So, in my case, I had always liked the idea that Larry Williams posed in one of his books with a chart of the DOW Jones Industrial Averages where he had plotted all the full moons and new moons on a daily chart of the DOW. That charts proved to me that there was definitely a correlation between the phases of the moon and the up and down cycles of the stock market. In fact, I seem to recall reading somewhere that J. Welles Wilder chose the number 14 for the RSI because it was 1/2 the 28-day lunar cycle. Of course that would not be incorrect for plotting stock charts because the chart is based upon trading days and not calendar days. So, on one of my own research and back testing projects, I chose to test the full Stochastics and the RSI and instead of using the number 14, I wanted to see what the results might be if I based my oscillators on a number that accurately reflected the swings of the lunar cycle based upon trading days. So knowing that there were 252 trading days in a year and that there are actually more than 12 lunar cycles in a year (I believe the correct number is actually 12.3682662), I chose to use the number 20.38 for the Stochastics (a full lunar cycle) and 10.19 for the RSI to reflect a half lunar cycle and take into consideration both the new moon and full moon swings. The results of my back testing on the stocks I was trading at the time, was amazing and I have been using those numbers ever since. You might also notice that a trending stock seems to find support at either the 10 or 20 day moving average while it is trending. Many years ago a market analyst named Donchan created a trading system of buying when the 10 day average traversed up across the 20 day MA and selling when the 10 day average traversed down over the 20 day MA. That system made money for him every single year and he published a book on the subject. I hate mechanical systems because obviously they leave out too may variables that you can not plot easily on a chart so, I always believed that I could improve on Donchan's 10 and 20 day MA trading system simply by being aware of it but, trading based upon my own observation of all those other variables as well. I would highly recommend that you do your own research and see what numbers prove to be the best for your own trading methods. If you want to test my numbers, I can tell you that if you swing trade the way I do, then those number will most likely work for you too. Hope that answers your question.
DNAD - This stock appears to have formed a Double Bottom formation on the daily price chart accompanied by a Bullish Divergence and high volume with Bullish Tension seen in the MACD. I would say purchasing shares here was fairly safe for at the very least a bounce in the price back to the 200 day MA which could double your money. If the Double Bottom is not re challenged and the price breaks through the 200 day MA, then we could be in store for much higher prices. Just my opinion. http://stockcharts.com/h-sc/ui?s=DNAD&p=D&b=5&g=0&id=p04581345286&a=271338172&listNum=6
I'm not going to argue with you. But, be careful of what you choose to believe. As ye believe, so shall it be done unto you. YES! I make all my buy and sell decisions based entirely on the chart. I almost never read the news. I rarely know what the companies I invest in actually do. All I really know is that a lot of other people for whatever reason are buying the same stocks I buy. I almost never lose money on a trade and it generally takes me less than an hour a day to do all the stock study I need to do in order to take money out of the market every single day. So, you are certainly welcome to trade anyway you want to. I honestly don't care how you do it. I know that what I do works consistently and that is all that matters.
No change in my opinion. There appears to be support now on the daily chart but, the hourly chart makes it look like a retest of that support is most likely now.
http://stockcharts.com/h-sc/ui?s=ICPA&p=D&yr=0&mn=6&dy=0&id=p52677956735&a=257286122&listNum=6
Hmmmmm ... my bad! I must have been looking at a different chart. Perhaps I typed it in wrong. There is still a downtrend, that is still correct but, there is a possible cup and handle formation developing accompanied by high volume and there is a very good possibility that the trend is undergoing transformation at this point. http://stockcharts.com/h-sc/ui?s=ENTB&p=D&b=5&g=0&id=p29901679291&a=269546912&listNum=6
Anytime the price is trading below the 200 candle moving average, that's a downtrend. Interestingly enough, the daily price chart is also in a downtrend and resistance has been firm anytime the price rallied to the 50 day MA. A stock that is following an establish trend tends to remain in that trend until acted upon by an outside force. Event though there is high volume here and a slowing of momentum, the trend is still down and there are no other obvious signs of a market bottom quite yet. It's worth watching but, I would not be buying yet.
Thanks for the kind comments. I'm always glad to help if I can.
Daily Chart Analysis - I really don't see much on this chart to get too exited about quite yet. The recent high volume is the most interesting thing but, the trend is decidedly down and there appears to be firm resistance anytime the price rallies to the 50 day MA. So, while a major bottom could be developing due to the volume, I for one would not be a buyer quite yet. There are no obvious signs of a bottom other than volume and a slowing of downward momentum at this point. That could also spell price consolidation prior to a further drop in price.
Hourly Chart Analysis - The current hourly chart trend is DOWN and there is a recent bearish divergence on the chart indicating that the price is most likely to continue lower. Just my opinion of course but, the charts rarely lie. http://stockcharts.com/h-sc/ui?s=UCHC&p=60&yr=0&mn=1&dy=0&id=p49488393640&a=271334202&listNum=5
Ok, now that is a good question because this is where it can get a little confusing. You need to decide what chart (daily, hourly, 15-minute or even 5-minute which I use on occasion will give you the best buy signals given the over all big picture as seen on the weekly chart. If the weekly chart i also oversold, then this is a major turn around point (or it could be) for the stock. So, in this case you could easily see the hourly and 15-minute charts stuck on overbought for a while as the market runs. Some time there is only a quick spurt up and then a correction on either the hourly or 15-minute or both before the stock gets underway again. That is why it is important to look at all 4 time frame charts in order to determine which chart appears to be giving you the most precise picture of where the price is really headed. If you were to print out or place then each in a separate window on your computer and look at all 4 chart side by side, you will clearly see what is going on in the big picture (or macrocosm) and also within that big picture in the microcosm world. Usually one of those charts at any given time appears to be the chart to watch to see where the price is really headed. That is why I do not always show the same chart. I tend to focus on the chart that has the best current picture. Mostly that is a chart that has a conflict like a triangle or consolidation pattern that could have an affect on the current dominant trend. hope that makes sense.
Actually I consider the Daily to be the macrocosm and the hourly and 15-minute chart the microcosm.
Yeah, if you are like me, you don't like spending money that could be making money for you in the markets. So, the only time I invest in a trading tools is when it promises to provide something or solve some problem that I don't have now and I can see a quick return on that investment. I do have OmniTraders Pattern recognition software but, I've disappointed in it as I don't believe it does what they advertise.
I'm pretty sure Murphy covers that in his book. Revisit the section on Descending triangles. What you do is measure the distance of the height of the triangle and then project that distance down (using a logarithmic chart) from the base of the triangle to give you a target price. What I do then is look for other support possibilities in that area such as moving averages or previous support/resistance points. That generally gives me a range of where the price might turn back around but, remember it's only a target price. The actual price to buy at can't really be determined (in my opinion) until the hourly and/or 15-minute charts are providing a nice buy signal of some kind.
I guess I'm not sure what you mean by modules. I use OmniTrader in EOD. I mostly use it to provide me with candidates to watch based on the Ranking system they use. I don't use it trading decisions per say.
BE CAREFUL - There is a Symmetrical Triangle on the ENTB hourly chart. This type of triangle is normally a continuation pattern and the recent trend is DOWN on the hourly chart. There is no indication of which way the price will breakout at this point, the indices seem to be quite neutral but, that in itself is a clue because the market will tend to follow in the direction of the current trend. So, we could see a bounce up to around $0.019 or (more than likely) a drop down to approximately $0.0052. Here is the chart: http://stockcharts.com/h-sc/ui?s=ENTB&p=60&yr=0&mn=1&dy=0&id=p06026230039&a=270426376&listNum=6