Tesla: A Great Time for A Bollinger Band Squeeze

Tesla (TSLA) ended the week with a 5.1% gain as it coils in the middle of a growing Bollinger Band (BB) squeeze.

Technically Speaking “…the most technical trade in almost any instrument has got to be Telsa stock….Investors love the company…there are some long-term and substantial holders…who are not inclined to sell…” – Michael Khouw, CNBC, May 8, 2020 The technicals are the main way I have come to understand and appreciate Tesla (TSLA). Once again, the … Read more

General Motors Stock: The Bollinger Bands Drop Before the BrightDrop

The General Motors Company (GM) launched sharply higher out of a Bollinger Band squeeze.

Bollinger Bands (BBs) are a powerful trading tool. They define an expected range of volatility in a stock based on recent price action. When that volatility contracts, the Bollinger Bands squeeze into a narrow channel. The resolution of that squeeze – to the upside or downside – can create a powerful continuation of or change … Read more

Above the 40 (January 5, 2018) – The S&P 500 Rubberband Stretches Further

AT40 = 67.5% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 63.2% of stocks are trading above their respective 200DMAs VIX = 9.2 Short-term Trading Call: cautiously bullish Commentary In my last Above the 40 I complained that market breadth was once again suffering thanks to an S&P 500 (SPY) … Read more

Apple Trading Model Refined: Squeeze Resolves Into A Breakout (Includes More Lessons for Execution)

On January 2, 2013, Apple (AAPL) hit $555 and came within $4 of a downward sloping 50-day moving average (DMA). From there, the stock faded hard and closed at $549.03. AAPL has yet to set a new intraday high this year. On (Black) Friday, November 29th, AAPL came within 6 cents of equaling its intraday … Read more

Is the Latest Topping Pattern Another Tease for the Bears? – The Market Breadth

Is the Latest Topping Pattern Another Tease for the Bears - The Market Breadth

Stock Market Commentary Is another tease for the bears underway? The current bullish rally has included so many temporary bearish signals that I had to stop using baseball metaphors to call strikes. Now, the latest bearish signal looks like the most ominous yet. In the wake of February’s job report, price action delivered a wicked … Read more

The Extended Overbought Rally Quickly Overcomes Its Third Strike – The Market Breadth

Extended Overbought Rally Quickly Overcomes Third Strike – The Market Breadth

Stock Market Commentary After the stock market rally suffered strike one and strike two, Wednesday’s sudden pullback had all the signatures of a third strike to start the end of the extended overbought rally. Sellers surged in the final 90 minutes of trading that day. However, they failed to sustain the stampede for the exits. … Read more

A Looming Collision Between Overbought Trading and the Fed – The Market Breadth

collision (Credit: Collision Course by charlieishere@btinternet.com on Flickr)

Stock Market Commentary: Market breadth almost reached overbought trading territory last week. The Federal Reserve is issuing yet another missive on monetary policy this coming Wednesday. The market’s script is arranged for the potential drama of a collision between the euphoria of overbought trading and a Federal Reserve that is eager to moderate the market … Read more

Stock Chart Reviews – Sifting Trash & Opportunity In Bear Market Rubble

Stock Market Commentary: With the prospects of a bottom for this bear market, I am getting a little more interested in individual stock narratives. The bear market rubble is extensive. The gems are dispersed across a wide area. These stock charts provide one framework for sifting through the trash and the opportunity. {note: in this … Read more

Stock Chart Reviews – Snapshots of Digital Lows and Material Highs

Stock Market Commentary My bullishness waned with last week’s manic trading action. I called the resulting patterns choppiness toppiness to reflect a biding sense that the market is churning out some kind of lasting top. Still, under the surface of the churn is a fresh divergence. The stock market is full of digital lows and … Read more