Comments on: Tech Talk for Wednesday April 22nd 2009

By: chris

chris — Thu, 23 Apr 2009 05:35:19 +0000

Hi Don,
Could you recommend some websites that can check the stock chart of Hang Seng Index with
all kinds of technical indicateors.
Thank you.

By: Don Vialoux

Don Vialoux — Thu, 23 Apr 2009 02:56:12 +0000

Hi Mikey. The financial services sector on both sides of the border has a period of seasonal strength ending in May.

By: Ken A

Ken A — Wed, 22 Apr 2009 19:54:48 +0000

Nick: Well it’s only one of many sentiment indicators. Note that it was quite accurate during many of the peaks on the way down – eg. Feb 9, Feb 24. Of course, it will also show this behaviour when the market rushes up like it did for most of March.

By: Dave

Dave — Wed, 22 Apr 2009 19:39:24 +0000

Hi Ken A,

The highest six volume option contracts today, according to Yahoo finance, are puts. Specifically, SPY May 85 puts trading volume over 60,000 contracts! The highest open interest for SPY are May 78′s. Not sure why that would be. This says to me, short term traders are betting on down. IMHO I find my golden retriever to be reliable! If he barks once to go for a walk, it’s a bullish day! He is accurate 8 times out of ten, through the months of May to September!

I have a question about Elliot Wave Theory? You appear to follow it. This link gives an example of what the software does, that Don V. referenced yesterday. (3 minute tick since the drop since Monday) http://tradesystemguru.com/content/blogcategory/39/73/

You can see, at least it appears to be right as of this time. I’m very skeptical of these things, but do you have, (or anyone else) have an opinion on this software. Do you know anyone that uses it?

You can go to http://www.elliottician.com/RETCLifestyleVideos.aspx and click on the short video called “understanding the patterns” that is somewhat interesting. They basically trade zig zags with this system. 5 zigs followed by 3 zags are their entry points and the software filters through markets to find these patterns.

Thanks in advance,
Dave

By: Nick

Nick — Wed, 22 Apr 2009 19:34:09 +0000

Thank you Ken A. The line chart makes it much cleaner. I had it on candlestick. One question I have: March 17 it was at .65 and the mrkt has gone straight up since then. At .75, is it not saying we go higher ?

By: Ken A

Ken A — Wed, 22 Apr 2009 19:20:06 +0000

Nick:

Well, maybe ‘all-time low’ is misleading – it’s currently at 0.75 which is lower than all of 2008, and 2009 except for 7 other days. Be sure to show it as a ‘line’, not candlesticks (which looks like garbage). Market turns often occur when most of the market sentiment is biased to the opposite extreme.

By: Nick

Nick — Wed, 22 Apr 2009 18:58:09 +0000

Ken A . . . I’m a chart guy for sure and I cannot understand how you read the $CPC. Where do you see the all time low on the chart? If you can, please try and explain it to me.

By: Ken A

Ken A — Wed, 22 Apr 2009 16:51:07 +0000

Dave:

I know what you mean about ‘everyone is calling for a correction’, but here the view is technical, which is a minority vote in the market. Check $CPC on stockcharts.com for PUT/CALL sentiment – it’s back at an all-time low, which translates to extreme bullishness (where traders are laying down their cash, not just talk). Time will tell…

By: Dave

Dave — Wed, 22 Apr 2009 16:38:46 +0000

It seems everyone is calling for a correction. That in itself must be a bullish sign. Not to say it won’t come, but perhaps not for awhile. IMHO

Dave

By: nick

nick — Wed, 22 Apr 2009 15:49:56 +0000

Well said Canuak2004. I to see a bear market drop coming soon. Just hope I do not get stopped out of HFD before the fall.