Technical Analysis of STOCKS & COMMODITIES
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Article Archive For Paolo Pezzutti
DownloadEmini S&P Toward The End Of The Rally
ARTICLE SYNOPSIS ...Prices are consolidating close to recent highs....
Yahoo! Developing A Bullish Triangle
ARTICLE SYNOPSIS ...Prices are very close to the apex of the formation, and we can expect a breakout soon....
Emini S&P Tests November Low
ARTICLE SYNOPSIS ...Last week has given hope for a longer rebound. The Elliott wave count indicates that this phase of the bear market may be over....
Stronger Dollar Ahead?
ARTICLE SYNOPSIS ...The rebound of the euro vs the US dollar could be almost over....
30-Year US Treasury Bonds Uptrend Losing Strength
ARTICLE SYNOPSIS ...Prices may have initiated an A-B-C correction....
Apple Stock Pushed Higher With News Of Steve Jobs' Health
ARTICLE SYNOPSIS ...Apple Inc. is a stock to watch with news about Steve Jobs' health....
Utilities Moving Sideways
ARTICLE SYNOPSIS ...Trading a breakout of the long consolidation is an option....
US Natural Gas Fund ETF Double Bottom
ARTICLE SYNOPSIS ...At the end of a long downtrend, natural gas prices might rebound....
Elliott Wave Bullish For US Dollar
ARTICLE SYNOPSIS ...The dollar is developing a symmetrical triangle, which is a continuation pattern....
Working Money: Investing In Africa by Paolo Pezzutti
Wal-Mart: A Cure For Recession
ARTICLE SYNOPSIS ...The giant retailer beats analysts' sales expectations in April....
Utilities Select Sector In Trading Range
ARTICLE SYNOPSIS ...An increase in volatility could initiate a new directional move....
With Financial Select Sector SPDR ETF, The Downtrend Continues
ARTICLE SYNOPSIS ...There are no indications of a reversal; bad news and the generally negative sentiment could bring prices excessively lower....
Texas Instruments Retests Recent Lows
ARTICLE SYNOPSIS ...The stock is attempting a rebound after a long downtrend....
General Motors Keeps Going Down
ARTICLE SYNOPSIS ...Weak December sales and sinking stock prices close the year for the US automaker....
Citigroup Is A Buy Opportunity
ARTICLE SYNOPSIS ...The stock has been hit by bad news underperforming the sector. Buying supports could be a profitable strategy....
Working Money: Alternative Energy by Paolo Pezzutti
Emini S&P Rebound Could Continue
ARTICLE SYNOPSIS ...The breakout of the head & shoulders neckline at 900 would be an important indication for the continuation of the up leg....
Continental Airlines Rebounds Toward First Resistance
ARTICLE SYNOPSIS ...The stock is providing signs of a continuing rebound....
Wal-Mart: A Bullish Reversal Island Pattern
ARTICLE SYNOPSIS ...The pattern was completed last Thursday on news of higher September sales....
Sprint: New Technology Not Paying Off So Far
ARTICLE SYNOPSIS ...The communications company plans a huge investment to implement a new technology to access the Internet....
Cisco: Turtle Soup Plus One
ARTICLE SYNOPSIS ...News about technology orders from US business pushed prices to the downside the day after a new high was printed....
Goldman Sachs Develops A Broadening Formation
ARTICLE SYNOPSIS ...This relatively uncommon pattern occurs in a high-volatility environment....
Is The Google Uptrend Finished?
ARTICLE SYNOPSIS ...Google prints a down gap on earnings news....
Weyerhaeuser: A Spike At The Top
ARTICLE SYNOPSIS ...Spikes are emotional patterns. When they are printed after a long trending period, they may represent a long-term reversal point....
Wide-Ranging Days And A Map Of The Market
ARTICLE SYNOPSIS ...This one-day pattern indicates that new money has entered the market....
The Two-Period Rate Of Change
ARTICLE SYNOPSIS ...A short-term methodology to identify buy and sell-short setups....
Morgan Stanley Price Finds Support
ARTICLE SYNOPSIS ...The stock finds an important support in the $60 area and outperforms the DJ Investment Services Index....
Tech Stocks And A Distribution Phase
ARTICLE SYNOPSIS ...The money flow and the on-balance volume indicate that investors are cautious about investing in tech stocks after the selloff at the end of February....
An Overview Of The TRIN
ARTICLE SYNOPSIS ...The TRIN can help traders spot overbought and oversold market conditions....
Broadening Patterns: An Overview
ARTICLE SYNOPSIS ...These patterns are relatively rare, but traders must be aware of their potential profit opportunities....
CBOE Gold Index: Triangle Breakout Failure
ARTICLE SYNOPSIS ...This gold index has failed to break out from an ascending triangle formation, developing a high-volatility move to the downside....
The Housing Market Bubble: Impact On Mortgage And Bank Sectors
ARTICLE SYNOPSIS ...Although the housing sector presents negative conditions currently, the mortgage and bank sectors should remain in a trading range environment....
AMEX Oil Service HOLDRS Index: Moving Sideways
ARTICLE SYNOPSIS ...A distribution phase might be ongoing on the HOLDRS, but the trend is very strong in the long term, and risk has to be strictly controlled....
Intel: Intraday Failure Of An Ascending Triangle
ARTICLE SYNOPSIS ...The semiconductor stock printed on Friday the worst performance of the DJIA--is weakness ahead in the short term?...
Continental Airlines Prints A Broadening Formation
ARTICLE SYNOPSIS ...The airline stock is tagging the upper trendline of a broadening formation, and volatility is increasing....
Goodyear Tire & Rubber In Congestion
ARTICLE SYNOPSIS ...This stock is moving within a tight congestion, characterized by a low volatility level. From here, a new trend will emerge soon....
McDonald's Prints New Highs
ARTICLE SYNOPSIS ...The fast-food chain stock is developing an uptrend in the intermediate time frame. Pushed by earnings news, the stock has printed what could be an exhaustion up gap after an extended move....
CBOE 10-Year Treasury Note Rebounds
ARTICLE SYNOPSIS ...Although in the short term the rebound is likely to continue up to the 47.20 level, the current slowdown of the economy will have an impact on interest rates in the intermediate term....
Bristol Myers Squibb And The Long Congestion
ARTICLE SYNOPSIS ...Prices are engaged in a very long congestion. The breakout should develop a volatile and directional move in the short term....
Breakaway Gaps At The Top: Selling Plays
ARTICLE SYNOPSIS ...Using candlestick patterns and indicator divergences can help traders reinforce their assessment when trying to identify breakaway gaps....
PowerShares WilderHill Prints Positive MACD
ARTICLE SYNOPSIS ...Renewable energy could benefit from the outcome of the elections and high energy prices....
A Tick Indicator Overview
ARTICLE SYNOPSIS ...The tick is a valuable tool, especially when utilized in a very short time frame, as it is quite effective at measuring market breadth. It is popular among daytraders and scalpers, as it can help assess the strength of market moves....
Pfizer Tests Supports
ARTICLE SYNOPSIS ...The stock is testing the lower trendline of a channel that contains prices during the past months' downtrend....
Disney Tests Resistance
ARTICLE SYNOPSIS ...The stock is in an uptrend and is outperforming the stock market....
JetBlue Airways: Short-Term Reversal
ARTICLE SYNOPSIS ...The stock has developed an interesting bullish reversal pattern, although general market conditions are negative....
Emini NASDAQ Accelerates To The Downside
ARTICLE SYNOPSIS ...An impulse to the downside has been printed during the past three sessions, indicating weakness is ahead in the short term....
Coca-Cola: Bullish Head & Shoulders
ARTICLE SYNOPSIS ...After the breakout of the neckline on heavy volume, the stock gains momentum to the upside....
Bullish Head & Shoulders For Apple
ARTICLE SYNOPSIS ...In the daily time frame for Apple Computer, the bullish reversal formation now needs confirmation with a breakout of the neckline....
Merrill Lynch Initiates Correction Phase
ARTICLE SYNOPSIS ...After printing multiple negative divergences during the long uptrend, this stock has initiated a fast correction....
Joe Ross And The Ross Hooks
ARTICLE SYNOPSIS ...Here's a methodology to exploit short-term momentum....
Morgan Stanley Is Testing Resistance Levels
ARTICLE SYNOPSIS ...In the long term, prices are developing a sideways move....
American International Group Tests Trading Range Resistance
ARTICLE SYNOPSIS ...The stock reacted well after the negative earnings report -- too well....
Lehman Brothers: A Pause In The Long-Term Trend
ARTICLE SYNOPSIS ...After a long rally, prices consolidate in the daily time frame for Lehman Brothers....
CBOE 10-Year Treasury Note Is In A Short-Term Congestion
ARTICLE SYNOPSIS ...Prices are testing the 2004 high....
McDonald's Tests For Short-Term Support
ARTICLE SYNOPSIS ...A hammer candlestick formation associated with the oversold stochastic indicates that a short-term reversal could be on the horizon....
Understanding Market Structure by Paolo Pezzutti
ARTICLE SYNOPSIS ...Stocks & Commodities V. 24:3 (30-37): Understanding Market Structure by Paolo Pezzutti Understanding the market before placing your trade can make a huge difference to your trading performance. Different financial markets have different behaviors. This is because of the intrinsic characteristics of these markets (growth/value stock, for example), market liquidity, participants (long-/short-term investors, institutions, daytraders, and position traders), and factors that affect the markets when market players elaborate information. You can make your system/method work under the technical cond...
Carnival Develops Short-Term Congestion
ARTICLE SYNOPSIS ...The stock has initiated a rebound that could move prices toward a big down gap....
Reversal Pattern: A Candlestick Hammer On Emini S&P
ARTICLE SYNOPSIS ...The pattern failed, squeezing the last bulls before the market reversed to the upside to find a balance at higher levels....
Reversal Pattern: A Candlestick Bullish Engulfing On Dupont
ARTICLE SYNOPSIS ...The pattern started a reversal to the upside in the short term....
Continuation Pattern: Symmetrical Triangle
ARTICLE SYNOPSIS ...This formation is common when assets consolidate before resuming the original trend....
Disney: No Reaction To Positive News
ARTICLE SYNOPSIS ...Although the stock presents good relative strength, it is likely to enter a consolidation phase in the short term....
For The 30-Year T-Bond Contract, The Correction Might Be Over
ARTICLE SYNOPSIS ...Bonds hit a double low and presented divergences in the short and intermediate term....
Candlestick Filtering: The Stochastics
ARTICLE SYNOPSIS ...The DJ Internet Commerce Index prints a relative top and moves to the downside to test previous lows....
Emini NASDAQ: Weakness Ahead
ARTICLE SYNOPSIS ...Prices tested resistance levels and started a correction....
Who Believes In Ford?
ARTICLE SYNOPSIS ...Ford Motor Co. stock is providing indications for at least a pause in the downtrend....
Continental Airlines Flies High
ARTICLE SYNOPSIS ...Continental Airlines stock has been in a strong uptrend for the last two months, more than doubling its price....
Dow Jones Utilities Index And Positive Expectations
ARTICLE SYNOPSIS ...In the intermediate term, the utilities sector could benefit from the end of the rate hikes....
Qwest Prices Consolidate
ARTICLE SYNOPSIS ...The stock has printed a dark cloud cover pattern on the daily time frame....
Goldman Sachs Is Consolidating After An All-Time High
ARTICLE SYNOPSIS ...Prices are developing a congestion at the end of a long move up....
Advanced Micro Devices: A Pause In The Parabolic Rally
ARTICLE SYNOPSIS ...The price of this high-tech stock is in a consolidation phase in the daily time frame....
Amex Natural Gas Index: Testing Supports
ARTICLE SYNOPSIS ...A fast move to the downside brought prices to the first support level....
Internet HOLDRS: Is Weakness Indicated?
ARTICLE SYNOPSIS ...In the short term, prices are printing an impulse to the downside....
Test Of Resistance For Micron Technology
ARTICLE SYNOPSIS ...A shooting star candlestick pattern indicates at least a pause in the uptrend....
Short-Term Reversal Pattern
ARTICLE SYNOPSIS ...A pattern based on the market facilitation index can help traders identify reversals....
Russell 2000 iShares Val Index: Bearish Engulfing Pattern
ARTICLE SYNOPSIS ...This pattern indicates weakness in the short term....
The Falling Three Method
ARTICLE SYNOPSIS ...This candlestick pattern, which is quite rare and usually reliable, has provided some wrong signals lately....
EUR/USD In A Tight Trading Range
ARTICLE SYNOPSIS ...A trend is about to emerge in the short and intermediate time frames. A breakout technique might prove to be effective....
Adam And Eve Pattern For DELL
ARTICLE SYNOPSIS ...News about Dell's battery recall and the company's second-quarter earnings release have occurred in a technically interesting situation, where the stock has printed a pivot low and developed a short-term reversal formation. However, an ongoing informal inquiry about accounting practices may have a negative effect on the technical developments....
On-Balance Volume Overview
ARTICLE SYNOPSIS ...This well-known indicator can help traders assess the market's conditions....
The Advance-Decline Line: NYSE, AMEX, And NASDAQ
ARTICLE SYNOPSIS ...This indicator helps traders assess the participation in market moves, identifying market breadth....
The Fed And The Markets
ARTICLE SYNOPSIS ...During the recent past, the best-performing sectors have been those who benefit from a stable-to-lower interest rates environment, anticipating a change of monetary policy....
Coffee Rebound Continuation Likely
ARTICLE SYNOPSIS ...After reaching historically low levels, prices have started a rebound with the potential to continue into the coming weeks....
Ford: Rebound Likely To Continue
ARTICLE SYNOPSIS ...Rumors about Ford unit Jaguar are moving prices higher....
Continuation Pattern: The Flag
ARTICLE SYNOPSIS ...Here's a basic chart pattern that provides good insight about consolidation phases within trends....
Fannie Mae Consolidates Near Short-Term Support
ARTICLE SYNOPSIS ...The stock is consolidating and in the intermediate term, a bullish head & shoulder formation is developing....
Wal-Mart Near Short-Term Support
ARTICLE SYNOPSIS ...The stock of the retailing giant has been moving in a trading range during the past year....
Continuation Pattern: Wedge
ARTICLE SYNOPSIS ...Wedges are chart patterns that provide reliable indications to traders....
Harami Candlestick Pattern: Ford
ARTICLE SYNOPSIS ...The stock prints the pattern with the stochastics oversold...
A Double Low Chart Pattern On eBay
ARTICLE SYNOPSIS ...After testing support, eBay's stock is now consolidating....
The Island Reversal Pattern: Research In Motion
ARTICLE SYNOPSIS ...This chart pattern provides reliable indications of a trend reversal. Here's an example....
Freddie Mac Displays Weakness
ARTICLE SYNOPSIS ...Freddie Mac prices accelerate to the downside, pushed by higher interest rates and corporate earning news....
Short-Term Pattern: ID/NR4
ARTICLE SYNOPSIS ...Range contractions often anticipate high-volatility movements....
Intel: Close To Weekly Supports
ARTICLE SYNOPSIS ...Prices are testing their supports after a two-month correction....
Alexander Elder: The Force Index
ARTICLE SYNOPSIS ...The force index combines price and volume to provide you with the strength of bulls and bears both....
Forex EUR/USD: What's Next For The Dollar?
ARTICLE SYNOPSIS ...Katrina's potential impact on the economy could affect investors' attitude....
ExxonMobil: A Successful Oil Company
ARTICLE SYNOPSIS ...A false breakout to the upside for ExxonMobil brings prices back into the trading range....
Working Money: A Short Guide To Exchange-Traded Funds by Paolo Pezzutti
A Short-Term Buy Setup On Chevron
ARTICLE SYNOPSIS ...A combination of setups provides guidance for a short-term trade....
The Stochastic RSI
ARTICLE SYNOPSIS ...The stochastic RSI is an oscillator of an oscillator useful in managing trending markets....
The Morning Star Candlestick Pattern
ARTICLE SYNOPSIS ...Candlestick charts can help traders filter out the noise. This pattern provides useful indications to anticipate market bottoms....
Short-Term Pattern: Adam And Eve
ARTICLE SYNOPSIS ...This pattern provides big profit opportunities when the reversal occurs at the end of parabolic rallies....
Extended Level Boomers Setup For GM
ARTICLE SYNOPSIS ...Jeff Cooper's "Hit and Run" methodology profits from a pause in the original trend....
Short-Term Trading: Trading Pullbacks
ARTICLE SYNOPSIS ...Jeff Cooper's methodology is based on profiting from pullbacks in a strongly trending market....
Merck Shows A Positive Divergence Of The Bollinger %b Indicator
ARTICLE SYNOPSIS ...The stock has been in a downtrend during the past five years....
Texas Instruments Shows An MACD Negative Divergence
ARTICLE SYNOPSIS ...Goldman Sachs has downgraded Texas Instruments to underperform, assuming margins are at their cyclical peak....
Stock Market Volatility: What Next?
ARTICLE SYNOPSIS ...Volatility is at its lowest levels in years. Although structural changes might be ongoing, a high-volatility environment appears to be back....
The Biotech Index: A Long-Term Opportunity
ARTICLE SYNOPSIS ...The growth strategy provided very good returns to investors in the long term....
News Corp. Shows A Short-Term Reversal Formation
ARTICLE SYNOPSIS ...The media giant displayed a positive divergence of the Bollinger indicator %b and developed a reversal formation....
Short-Term Pattern: GAP2H
ARTICLE SYNOPSIS ...Strategies based on price patterns are an alternative to complex formulas....
Short-Term Pattern: 3L-R
ARTICLE SYNOPSIS ...Michael Harris' price pattern is useful to profit from short-term reversals....
PHLX Semiconductor Sector Index
ARTICLE SYNOPSIS ...A buy short-term setup brings prices into a first resistance....
Larry Williams And The OOPS Signal
ARTICLE SYNOPSIS ...This short-term pattern provides good trading opportunities....
General Motors: Island Formation
ARTICLE SYNOPSIS ...This technical formation often signals major trend changes....
Bullish Triangles: Trading Scenarios
ARTICLE SYNOPSIS ...Bullish triangles forecast a volatility expansion--but not always on the upside....
Identifying Congestions
ARTICLE SYNOPSIS ...Understanding market conditions is important for timing your trades....
Short-Term Patterns: Turtle Soup
ARTICLE SYNOPSIS ...Swing trading with short-term high volatility patterns can provide good opportunities for profits....
NYMEX Crude Oil: Near All-Time Highs
ARTICLE SYNOPSIS ...Indications are for a continuation of the trading range....
Short-Term Patterns: 80-20
ARTICLE SYNOPSIS ...This pattern provides interesting short-term trading opportunities....
Boeing: Positive Expectations
ARTICLE SYNOPSIS ...The stock is in a stable uptrend, with indications for a consolidation phase in the short term....
Citigroup: A Trend Is About To Emerge
ARTICLE SYNOPSIS ...Prices have no directionality and low volatility, providing the expectation for a new trend to be born soon....
Gaps: A Common Pattern
ARTICLE SYNOPSIS ...This short-term pattern provides good trading opportunities....
US T-Bond: Is It Time To Be Contrarian?
ARTICLE SYNOPSIS ...The 30-year interest rate of this futures contract is at its all-time highs....
Forex USD/JPY: The Currencies After China's Revaluation
ARTICLE SYNOPSIS ...The yuan was revalued, but not as expected. Are bigger changes coming?...
One-Day Patterns: Spikes
ARTICLE SYNOPSIS ...Spikes are a powerful pattern for traders....
Procter & Gamble: Consumer Goods Giant
ARTICLE SYNOPSIS ...Prices are in a trading range, but expectations are positive....
One-Day Patterns: Thrust Days, Run Days, Wide-Ranging Days
ARTICLE SYNOPSIS ...These patterns can help the trader understand market conditions....
Dow Mini: Retest Of Support Likely
ARTICLE SYNOPSIS ...The Dow Jones Industrial Average gets closer to support levels as negative news affects investor attitudes....
Johnson & Johnson: Close To Medium-Term Supports
ARTICLE SYNOPSIS ...Johnson & Johnson is printing multiple MACD positive divergences....
USD/JPY: Consolidation Of Prices Ahead
ARTICLE SYNOPSIS ...An impulse to the downside indicates the possibility of lower prices in the medium term....
Pfizer: A Reversal Formation
ARTICLE SYNOPSIS ...Prices could continue to move up and close the gap in the $24 area....
Short-Term Pattern: ADX Gapper
ARTICLE SYNOPSIS ...This reliable retracement pattern profits from fading the gap in a strongly trending market....
Short-Term Pattern: Jack In The Box
ARTICLE SYNOPSIS ...Jeff Cooper's Hit and Run methodology profits from a pause after an expansion breakout bar....
GM: A Short-Term Adam And Eve Setup
ARTICLE SYNOPSIS ...General Motors is close to its all-time lows and is developing a short-term reversal setup....
S&P Index: The Risk Is Getting Higher For Bulls
ARTICLE SYNOPSIS ...New medium-term highs are printed in a record low-volatility environment and with multiple MACD divergences....
Short-Term Strategies: Fading The Gap
ARTICLE SYNOPSIS ...Statistics provide elements for successful strategies....
Walt Disney Company: The Entertainment Leader
ARTICLE SYNOPSIS ...Prices have little directionality and low volatility....
Microsoft: The Worldwide Leader In Software
ARTICLE SYNOPSIS ...Appointment of a new chief operating officer brings prices into resistance....
Nike: Successful Company, Positive Outlook
ARTICLE SYNOPSIS ...Recent news of the Adidas-Reebok deal has had a sharp impact on investors' attitude about Nike....
John Bollinger: The Squeeze
ARTICLE SYNOPSIS ...This volatility-based method makes use of an indicator derived from Bollinger Bands....
Joe Ross And Bollinger Bands
ARTICLE SYNOPSIS ...Here's an interesting way to exploit Bollinger Bands....
NYMEX Crude Oil Continuous Contract: Down To Support
ARTICLE SYNOPSIS ...The Bollinger Bands suggest a trading range is developing....
CME Euro FX Continuous Contract: Is The Trend Over?
ARTICLE SYNOPSIS ...The study of relationships between range and volume provides a valuable insight to market conditions....
Designing Volatility Breakout Systems by Paolo Pezzutti
ARTICLE SYNOPSIS ...Designing Volatility Breakout Systems by Paolo Pezzutti Interested in improving your system's profit factor? Here are some suggestions. The principle of range expansion/contraction was first studied and analyzed by Toby Crabel in Technical Analysis of STOCKS & COMMODITIES. According to Crabel, the market oscillates between contractions and expansions. When the market moves between areas of equilibrium (the balance of supply and demand), it does so quickly through range expansion days. This forms the premise of volatility breakout systems. Since traders focus on these short-term range expansi...
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