Smart Chart Investor

Beyond Buy and Hold: Using Technical Analysis to Reduce the Risk of Long-term Investing

Reflections

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One chart will tell you all you need to know for the week...kind of. The 15 minute chart of the S&P 500 Index ETF (SPY) shows price action flatlined the entire week (I put the weeks price action inside the rectangle). This is good. This is miniature consolidation, a rest. This is normal. Price action is often reflective. Oversold often results in overbought. Steep collapses often result in steep spikes. All of this recent "steepness" needs a break. Traders and investors alike need … [Read more...]

All Clear?

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I don't think I can be any more accurate than I have been about the broader market (SPY) recently. We got the dip I have been warning about and we got the steep ascent I was expecting at one of the two reversal levels I pointed out (the higher one). The lower level reversal I have been sharing with you would have been stronger, however, please note the speed at which price has moved from the upper reversal level on Tuesday. Up over 5% in four days. Strong like bull. Is this the all clear … [Read more...]

Potential Flush Next Week

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I'm grabbing a quick early morning moment to review Friday's price action as I was traveling yesterday. Well, you can't say I didn't warn you. Friday was a face ripper. More support broken. Descent is getting steeper. Hold on. I think we are almost down. Hard deck looks to be SPY 265/270. This is never easy. We are likely to get a final flush down soon. That would actually be OK as, if we are not in a full blown nightmare, it would get so oversold it would bring the buyers back in to … [Read more...]

Just Charting Around Again

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As I'm traveling tomorrow and have a busy weekend with family in San Diego, here are some charts I have been looking at this week. Also, I was asked last night if we are in the dip I have been discussing for the past many weeks...yes, we be in that dip now. See SPY chart for potential reversal zones I circled. And, congrats to those who bought GBTC, the ETF that tracks bitcoin. +180% on partial sale today. It has provided a nice hedge in recent weeks. Symbol is in upper left corner of ch … [Read more...]

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