S&P 500, Oil & Financials Continue To Show Bearish Signals, Dennis Gartman Notes Gold Likely To Trend Down Towards $880-Risk Management Key

B"H

Disclaimer: This is for educational purposes only. Full Disclaimer below. Comments & Suggestions Are Always Appreciated.

Please Remember Profit Protecting "Option Strategies" & Stop-Loss Orders May Help Protect Profits & Cap Losses Quickly:http://chartingstock.blogspot.com/2009/05/stop-loss-orders-can-save-you-thousands.html

View The Blog: http://chartingstock.blogspot.com/

Messages/Posts Will Be Updated As Time Permits-With Additional Information & Links:

Real Time At Twitter: https://twitter.com/chartingstock

*UPDATE-Rally Possible Today-Thursday July 1st & 2nd Due To Begining of 3rd Quarter. Art Cashin Referenced This Trend Wednesday July 1st-But Warned That Other Factors May Inhibit This Traditional Trend.

http://chartingstock.blogspot.com/2009/06/s-500-oil-financials-continue-to-show.html

*Gold-Despite Holding Morning Lows-Dennis Gartman Bearish Looking For Move Down Towards $880/Ounce

*S&P 500-Very Bearish Head & Shoulders Pattern-If Confirmed Increased Probability of Driving S&P 500 Down Towards 800

*SPY Down Spike= $91.38 At 4:05pm-Increased Probability Of Trading Down Towards $91.38, $90.08, $87.97 &$87.53 Initially

*SPY Up Spikes= $92.7408 At 4:15pm 4:30pm & 4:32pm-Increased Probability Of Trading Up Towards $92.7408, $95.08, $95.88

*Unemployment Data Released Thursday Morning-July 2 At 8:30am

*Oil Bearish Reversal Today Supports Possibility Of Oil Down Trend Since June 11, 2009-Increasingly Likely Oil Heads Lower Near-Intermediate Term

*Financials Peaked May 8th & Have Been Bearish Since. Important to Note That the 2 Main Drivers of the Spring Rally, Energy & Financials Have Reversed Direction & Have Been Showing Bearish Technicals For Some Time.

The S&P 500 Closed Down -.85% & Continues To Be Below The 200 Day Exponential Moving Average. The SPY ETFwhich closed down -.81% managed to close .03 cents above the 21 Day EMA & above the 100 & 50 day EMAs.Overall, one cannot rule out a pop higher towards the $95.88 level on the SPY. That being said, there is a very Bearish Head & Shoulders pattern forming on the S&P 500. For initial pattern confirmation the Index will need to drop below lows set on June 23 which correspond to $88.85 on the SPY. This pattern has the potential to drive the index down towards the 800 level & should be monitored for confirmation. Overall, Risk Management on Longs & Shorts continues to be key. A major market moving event is approaching with Thursday mornings July 2 8:30am Unemployment Report.

GOLD

Despite Gold holding its lows of the morning-it is important to note that respected commodities trader Dennis Gartmanis looking for Gold to trend down towards $880/Ounce.

To view todays previous comments on Gold please visit this link:

http://chartingstock.blogspot.com/2009/06/gold-if-todays-lows-hold-as-support.html

OIL

Oil had a upward price rejection this morning & the Bearish move especially one day after extraordinarily Bullish news coming from China regarding there Strategic Oil Reserves is worth noting. As I wrote about on the day Oil hit its current intermediate high, June 11 & again this morning, it is increasingly likely (not definite-but likely) that Oil trends lower in the coming weeks/months. For more:

http://chartingstock.blogspot.com/2009/06/oil-bearish-failed-to-hold-onto-gains.html

BOTTOM LINE

The S&P 500 has traded in a tight range from approximately April 29 today July 2 between approximately 856.85-956.23. This morning Art Cashin noted a large % move is coming but it is still unclear whether that move will be a Break "Out"/Up or Down. Patience & overall risk management continue to be key. The 2 Sectors which powered most of the spring 2009 rally, Financials & Energy have reversed direction & continue to show Bearish signals.Financials peaked May 8th & Energy peaked June 11th. It is easy to lose sight of this in the headlines, but remembering these 2 points is key moving forward into the 3rd Quarter of 2009. Again, one cannot rule out a pop higher or continuation of the rally, but realizing the overhanging Bearish signals & implementing proper risk management measures is important.

Good Trading

-------------------------------------------------------

Market Messages Available at My Blog: http://chartingstock.blogspot.com/

Follow in Real Time on Twitter: https://twitter.com/chartingstock

@chartingstock

Comments & Suggestions Are Appreciated.

The Proper Use of Protective "Hedging" Options, Stop-Loss & Trailing Stop-Loss Orders May Be Helpful & Can Save You Thousands:

http://www.chartingstock.blogspot.com/2009/05/stop-loss-orders-can-save-you-thousands.html

The Benefits Of Using Technical Analysis In Making Trading Decisions:

http://chartingstock.blogspot.com/2009/06/charts-moving-averages-benefits-of.html

If You Are Reading This Post On A Secondary Web-Site--Please Be Aware That Things Often Change

Very Rapidly In A Trading Day. Real Time Updates on Twitter Are Most Up To Date:

http://chartingstock.blogspot.com/

The Main Site Will Be Updated As Time Permits & Is Most Useful:

-------------------------------------------------------

Disclaimer--The Above is For Educational Purposes Only, Please read the full Disclaimer below. STOP-LOSS ORDERS MAY BE A HELPFUL TOOL TO LIMITING LOSSES

EARLY. This is neither a solicitation nor an offer to Buy/Sell futures, options, commodities, stocks or any investment vehicle whatsoever. Futures, Options,

Stock, Currencies, Commodities and all trading HAS LARGE POTENTIAL RISK.must be aware of the risks and be willing to accept them in order to invest in the

futures and options markets (and all equity, currency, commodity markets). DON'T TRADE WITH MONEY YOU CAN'T AFFORD TO LOSE. No representation is being made

that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-

OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. All trades, patterns, charts, systems, etc., discussed herein and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. Stock market investments are risky. They don't provide fixed returns and past performance doesn't guarantee

future results. All securities investments entail the risk of great and sudden financial loss. Returns vary and you may have a gain or loss when you sell your securities. No assurance is given that anything described here will be successful. The message contains neither recommendations nor solicitations to buy or sell securities. Documents are published solely

for information and educational purposes and do not form the basis of any contract or commitment whatsoever. Nothing in the above should be construed as

investment advice, either on behalf of particular stocks or in regard to overall investment strategies. No representation or warranty, expressed or implied, is made as to the fairness, or correctness of the information contained in the above. Projections and

opinions expressed constitute the personal opinions of the authors and are set forth for informational and educational purposes only. I am not liable for

damages caused by actions taken as a result of the information in the above sites, guides, newsletters and e-books or any of their following pages, ads and

links. The expressed analysis and projections are subject to change without notice. No information above constitutes a recommendation to buy, sell or hold

any security, financial product or instrument discussed therein. We do not offer or provide any investment advice or opinion regarding the nature,

potential, value, suitability or profitability of any particular security, portfolio of securities, transaction or investment strategy, and you shall be

fully responsible for any investment decisions you make, and such decisions will be based solely on your evaluation of your financial circumstances,

investment objectives, risk tolerance, and liquidity needs.

Real Time At Twitter: https://twitter.com/chartingstock

Stop-Losses Can Save You Thousands-Please Read:

http://www.chartingstock.blogspot.com/2009/05/stop-loss-orders-can-save-you-thousands.html

BELOW MY POSTS & INTERNAL http://chartingstock.blogspot.com/LINKS ARE "SPONSORED ADVERTISEMENT LINKS" I HAVE NO CONNECTION WITH THESE SPONSORED

ADVERTISEMENTS. PLEASE FOLLOW IN REAL TIME ON TWITTER AT: @CHARTINGSTOCKhttps://twitter.com/chartingstock Good Trading

© 2009 chartingstock All Rights Reserved

Oil Failed To Hold Onto Gains After China Announced 160% Increase In Oil Reserves-A Bearish Signal-Possible Downtrend In Place

B"H

http://chartingstock.blogspot.com/2009/06/oil-bearish-failed-to-hold-onto-gains.html

Oil Bearish? Failed To Hold Onto Gains After China Announcement Increasing Oil Reserve By 160%-This Is A Bearish Signal

Disclaimer: This is for educational purposes only. Full Disclaimer below. Comments & Suggestions Are Always Appreciated.

Please Remember Profit Protecting "Option Strategies" & Stop-Loss Orders May Help Protect Profits & Cap Losses Quickly:http://chartingstock.blogspot.com/2009/05/stop-loss-orders-can-save-you-thousands.html

View The Blog: http://chartingstock.blogspot.com/

Messages/Posts Will Be Updated As Time Permits-With Additional Information & Links:

Real Time At Twitter: https://twitter.com/chartingstock

*Oil Down 5.75% Since June 11, 2009 & Is Down Approximately 3.3% At This Point Today

*Yesterdsay China Announced They Would Increase Their Oil Reserves By 160% Adding 169 Million Barrels Of Oil

*Oil Rallied For One Day Off Of This News But Has Given That Entire Up Move Back

*Link Featuring 3 Oil Analysts Bearish Calls This Morning

*When An Asset Fails To Rally Or Hold Gains After Major Positive News Events It Is A Warning That The Asset Is Likely In Or Entering A Downtrend

Yesterday China announced they would increase their Oil Reserves by 160% adding an additional 169 Million Barrlesof Oil. This news succeeded in assisting Oil in rallying approximately 3.5% yesterday but Oil has given back that entire move today. When an asset fails to rally or fails to hold onto gains after a major "game changing" news it is a warning sign that the asset may be entering or is in a downtrend.

This morning Peter Beutell reiterated his near-intermediate term Bearish call on Oil suggesting that Oil is likely to hit $55/Nymex Barrel by the end of the 3rd Quarter. On June 11 I posted the a note (link below) calling attention to several technical indicators suggesting Oil was likely overbought & included Peter Beutells Bearish call that morning. Since then Oil has fallen approximately 5.75% & while pops higher are possible, keeping in mind the increased probability of a near-intermediate term downtrend in Oil is key.

To View Boris Schlossberg, From GFT Forex, Peter Beutel From Cameron Hanover & Todd Colvin, ofMF Global Bearish Oil Calls This Morning:

http://www.cnbc.com/id/15840232?video=1168106155&play=1

© 2009 CNBC, Inc. All Rights Reserved.

To View The June 11th Post With Technical Analysis & Peter Beutells Bearish Oil Call Please Click Here:

http://chartingstock.blogspot.com/2009/06/oil-overbought-likely-near-term-etf.html

BOTTOM LINE

When a "game changing" event fails to provide a sustained pop higher for an asset it is a warning. While one cannot entirely rule out a continuation of the Oil rally, heeding the warning signals is likely wise.

Good Trading

-------------------------------------------------------

Market Messages Available at My Blog: http://chartingstock.blogspot.com/

Follow in Real Time on Twitter: https://twitter.com/chartingstock

@chartingstock

Comments & Suggestions Are Appreciated.

The Proper Use of Protective "Hedging" Options, Stop-Loss & Trailing Stop-Loss Orders May Be Helpful & Can Save You Thousands:

http://www.chartingstock.blogspot.com/2009/05/stop-loss-orders-can-save-you-thousands.html

The Benefits Of Using Technical Analysis In Making Trading Decisions:

http://chartingstock.blogspot.com/2009/06/charts-moving-averages-benefits-of.html

If You Are Reading This Post On A Secondary Web-Site--Please Be Aware That Things Often Change

Very Rapidly In A Trading Day. Real Time Updates on Twitter Are Most Up To Date:

http://chartingstock.blogspot.com/

The Main Site Will Be Updated As Time Permits & Is Most Useful:

-------------------------------------------------------

Disclaimer--The Above is For Educational Purposes Only, Please read the full Disclaimer below. STOP-LOSS ORDERS MAY BE A HELPFUL TOOL TO LIMITING LOSSES

EARLY. This is neither a solicitation nor an offer to Buy/Sell futures, options, commodities, stocks or any investment vehicle whatsoever. Futures, Options,

Stock, Currencies, Commodities and all trading HAS LARGE POTENTIAL RISK.must be aware of the risks and be willing to accept them in order to invest in the

futures and options markets (and all equity, currency, commodity markets). DON'T TRADE WITH MONEY YOU CAN'T AFFORD TO LOSE. No representation is being made

that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-

OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. All trades, patterns, charts, systems, etc., discussed herein and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. Stock market investments are risky. They don't provide fixed returns and past performance doesn't guarantee

future results. All securities investments entail the risk of great and sudden financial loss. Returns vary and you may have a gain or loss when you sell your securities. No assurance is given that anything described here will be successful. The message contains neither recommendations nor solicitations to buy or sell securities. Documents are published solely

for information and educational purposes and do not form the basis of any contract or commitment whatsoever. Nothing in the above should be construed as

investment advice, either on behalf of particular stocks or in regard to overall investment strategies. No representation or warranty, expressed or implied, is made as to the fairness, or correctness of the information contained in the above. Projections and

opinions expressed constitute the personal opinions of the authors and are set forth for informational and educational purposes only. I am not liable for

damages caused by actions taken as a result of the information in the above sites, guides, newsletters and e-books or any of their following pages, ads and

links. The expressed analysis and projections are subject to change without notice. No information above constitutes a recommendation to buy, sell or hold

any security, financial product or instrument discussed therein. We do not offer or provide any investment advice or opinion regarding the nature,

potential, value, suitability or profitability of any particular security, portfolio of securities, transaction or investment strategy, and you shall be

fully responsible for any investment decisions you make, and such decisions will be based solely on your evaluation of your financial circumstances,

investment objectives, risk tolerance, and liquidity needs.

Real Time At Twitter: https://twitter.com/chartingstock

Stop-Losses Can Save You Thousands-Please Read:

http://www.chartingstock.blogspot.com/2009/05/stop-loss-orders-can-save-you-thousands.html

BELOW MY POSTS & INTERNAL http://chartingstock.blogspot.com/LINKS ARE "SPONSORED ADVERTISEMENT LINKS" I HAVE NO CONNECTION WITH THESE SPONSORED

ADVERTISEMENTS. PLEASE FOLLOW IN REAL TIME ON TWITTER AT: @CHARTINGSTOCKhttps://twitter.com/chartingstock Good Trading

© 2009 chartingstock All Rights Reserved

$US-Near-Intermediate Term Strength Increasingly Important, SPY

http://chartingstock.blogspot.com/2009/06/us-mixed-signals-cannot-rule-out-strong.html

$US-Near-Intermediate Term Strength Increasingly Important

$US-Mixed Signals-Cannot Rule Out Strong Near-Intermediate Term Rally

B"H

Disclaimer: This is for educational purposes only. Full Disclaimer below. Comments & Suggestions Are Always Appreciated.

Please Remember Profit Protecting "Option Strategies" & Stop-Loss Orders May Help Protect Profits & Cap Losses Quickly:http://chartingstock.blogspot.com/2009/05/stop-loss-orders-can-save-you-thousands.html

View The Blog: http://chartingstock.blogspot.com/

Messages/Posts Will Be Updated As Time Permits-With Additional Information & Links:

Real Time At Twitter: https://twitter.com/chartingstock

*$US MIXED SIGNALS-STRONG NEAR-INTERMEDIATE TERM RALLY POSSIBLE

*S&P 500-At Key Support-Watching For Range Trading on SPY Between $87.53-$95.89

*Market Analysis By Art Cashin Who is Skeptical (Link Below)

$US Mixed Signals-CANNOT RULE OUT A VERY VERY STRONG DOLLAR RALLY NEAR-INTERMEDIATE TERM

For most of the past 8 months I have written about the long term $US Bearish Trend which seems to be developing. The massive selloff that occurred in early December 2008 followed by the equally steep rally from December-March has created an apparent Bearish Double Top for the $US. It is important to update those comments & note that since June 2, 2009 the $US has stabilized & seems to be building a base. Long term, there are very very serious problems with the $US but near-intermediate term one cannot rule out an extraordinary $US rally. At the moment many traders & analysts are split with some calling for a near term continuation of the Stock rally & others pointing to increasingly Bearish Market Internals & calling for a nearer term Market Correction. Many traders expect a fairly shocking Stock pullback at some point & the $US has a large impact on how the trading scenario will play out.

If the $US can continue to trend higher as it has done ever so slightly since June 2, it becomes from a technical perspective increasingly likely that a retracement higher of the March-June $US drop may occur. I wrote extensively in early June about how Oil was likely overbought & it turned out that those Blog Posts marked to the day the exact intermediate term top for Oil. The stabilization of the $US had a large part to do with this & keeping an eye on the $US is key because $US strength will very likely have a Bearish impact on US Stocks & Commodities. Long term, the $US appears trapped in a downtrend, but it is important to that a very strong rally in the $US is possible near-intermediate term. That possible $US rally is by no means a certainty, but keeping a close eye on $US price action should provide clues near term.

For 3 Analysts Views On the $US Please Visit These Bloomberg & CNBC Links:

"Dollar To Rise Most Since 1981"

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=abVRzOIqXuBs

2 Traders/Analysts Defending The US Dollar

http://www.cnbc.com/id/15840232?video=1167483251&play=1

© 2009 CNBC, Inc. All Rights Reserved.

Bearish On Dollar

http://www.cnbc.com/id/15840232?video=1166927344&play=1

© 2009 CNBC, Inc. All Rights Reserved.

S&P 500/BEAR MARKET RALLY DISCUSSION NOTING VERY LOW VOLUME-ARTCASHIN:

http://www.cnbc.com/id/31633528

© 2009 CNBC, Inc. All Rights Reserved.

BOTTOM LINE-RISK MANAGEMENT KEY-CANNOT RULE OUT CONTINUATION OF RECENT TRENDS-BUT AWARENESS OF POSSIBLE TREND REVERSALS IMPORTANT
Again, for both the $US & the S&P 500, one cannot rule out a continuation of recent trends. That being said, makret internals suggest that the S&P 500 is overbought & one can certainly make a case for a near-intermediate term $US retracement. Managing Risk Key.

Good Trading

Charts-Moving Averages-Benefits Of Using Charts in Trading Decision Making & Interpreting Fundamental Economic or Earnings News

B"H

Disclaimer: This is for educational purposes only. Full Disclaimer below. Comments & Suggestions Are Always Appreciated.

Please Remember Profit Protecting "Option Strategies" & Stop-Loss Orders May Help Protect Profits & Cap Losses Quickly.

Blog: http://www.chartingstock.blogspot.com/2009/05/stop-loss-orders-can-save-you-thousands.html

Real Time At Twitter: http://twitter.com/chartingstock

A BRIEF OVERVIEW OF BASIC CHART ANALYSIS & ITS ADVANTAGE OVER FUNDAMENTAL ANALYSIS

*Fundamental Analysis-Citibank-A Company With A Great P/E Went On To Fall More Than 95% From 2007-2009. Berkshire Hathaway Focusing On Fundamental Analysis Fell More Than 50% Twice From 1998-2009

*Benefit Of Using Technical Analysis, Price Action in Assisting Trading Decisions

*Very Important To Note Difference Between Trending Markets & Range Bound Markets & How Moving Averages & Bollinger Bands Should Be Used in These Different Types of Markets

FUNDAMENTAL ANALYSIS-HOW CITIGROUP WHICH HAD AN EXCELLENT P/E RATIO IN 2006 FELL MORE THAN 95% THROUGH 2009 & HOW BERKSHIRE HATHAWAY FELL MORE THAN 50% TWICE 1st FROM 1998-2000 & AGAIN FROM DECEMBER 2007-MARCH 2009

Twice today I spoke with friends interested in learning about "Investing". Both friends were quite intelligent but their line of questioning indicated major warning signals in their approach to stock selection & trading decision making. Both friends focused on fundamental analysis including Gross Domestic Product Numbers (GDP) released this morning & Price to Earnings Ratios (P/E). While most investors pay some attention to these statistics, in the past 30 years there has been a realization that Stocks with excellent P/Es can fall dramatically & that positive Economic figures such as GDP numbers can still be met with selling. Citibank (Quote=C) had an excellent P/E ratio as recently 2006 before falling more than 95%. Arguably one of the best Fundamental Investors of all time, Warren Buffett proves the intermediate shortfalls of not heeding warning signals from moving averages. Focusing on Fundamental analysis, Berkshire Hathaway fell From June 1998 through March 2000 more than 50%. After rising for many years thereafter, Berkshire once again proved the problem of not heeding warnings from technical analysis from December 2007 through March 2009 when Berkshire fell more than 55%

TECHNICAL ANALYSIS-BENEFITS OF USING PRICE ACTION TO GUIDE BUY & SELL SIGNALS & HOW MOVING AVERAGES & BOLLINGER BANDS ASSIST TRADERS IN DETERMINGIN BUY & SELL SIGNALS & THE DIFFERENCE BETWEEN "TRENDING MARKETS" & "RANGE BOUND MARKETS"

Justin Mamis in his books "When To Sell" & "How To Buy" notes that price reaction to economic news or earnings data is far more revealing than the data itself. If a company comes out with seemingly amazing earnings but drops 10% in after hours trading it is likely that traders focusedon another piece of data. Alternatively, if appealingly less than stellar GDP numbers are released & yet the market rallies it is likely that their are underlying strengths that are serving as a base for the market.

It is very important to note that markets their are major differences in using moving averages & Bollinger Bands in markets that are trending versus markets that are range bound.

Range Bound: moving sideways between levels of lower resistance & upper support use moving averages to assist in interpreting important levels within the range.

Trending Markets: or rising consistently with pullbacks to rising levels of support use moving averages & Bollinger Bands to help guide possible purchase levels & a method to confirm or invalidate trends.

Chart Analysis assists traders in focusing on arguably the most important piece of data to traders, price action. A stock or other asset that is able to rise above it's 200 day movingaverage (average closing price of the stock for the past 200 trading days) it is a sign of strength & upward price momentum in the stock. If an asset falls below the 200 day moving average, it is a sign that their are problems being revealed in price action. A very simple rule of thumb some passive traders use is buying assets as they cross above their 200 day moving average & selling assets as they cross below their 200 day moving average. A closer analysis of charts would implement other key moving averages including the 21 day, 50 day & 100 day moving averages amongst others. Moving averages act as support for assets as they fall & they act as resistance as assets rise.

Even further analysis may include Bollinger Bands which can be used to measure both 1) assets that are "overbought" or "oversold" or 2) an asset that has begun a new trend. In "range bound" markets i.e. trading between a defined up level & low level Bollinger Bands can provide 1 factor used in determining overbought or oversold levels. If a market is "trending" i.e. rising steadily or falling steadily, Bollinger Bands can be used to both confirm the trending nature of the asset & measure projected price targets consistent with the trend in place. There are many many more ways to interpretprice action but Moving Averages & Bollinger Bands are two widely used basic measures traders can use to help identify possible price targets favorable for buying & selling stocks, commodities or currencies.

P/E RATIOS, ECONOMIC NEWS & ALL FUNDAMENTAL ANALYSIS WILL BE REFLECTED IN PRICE ACTION-CHARTS WILL REVEAL THE MOST IMPORTANT INFORMATION

The cumulative information from P/E ratios, GDP figures etc. will be reflected in price action. Using charts to read past headline economic & earnings materials is an excellent way to interpret successful buy & sell signals. It is important to note that chart analysis is only 1 part of successful investing. Learning to use these pieces of information along with proper risk managment techniques including the consistent implementation of stop-loss orders or protective options as a hedge are all vital steps towards investing success.

For a further use of moving averages including analyzing an asset using moving average bands which take average daily highs & average daily lows thereby forming a band giving buy & sell signals. The "moving average bands" analysis was doene by Sandy Jadeja from ODLSecurities who is a regular Technical Analysis contributor at CNBC Europe.

http://www.cnbc.com/id/15840232?video=1162331342&play=1

© 2009 CNBC, Inc. All Rights Reserved.

Good Trading

-------------------------------------------------------

Posts Available at My Blog: http://chartingstock.blogspot.com/

Follow in Real Time on Twitter: http://twitter.com/chartingstock

@chartingstock

Comments & Suggestions Are Appreciated.

The Proper Use of Protective "Hedging" Options, Stop-Loss & Trailing Stop-Loss Orders May Be Helpful & Can Save You Thousands

http://www.chartingstock.blogspot.com/2009/05/stop-loss-orders-can-save-you-thousands.html

If You Are Reading This Post On A Secondary Web-Site--Please Be Aware That Things Often Change

Very Rapidly In A Trading Day. Real Time Updates on Twitter Are Most Up To Date:

http://www.twitter.com/chartingstock

The Main Site Will Be Updated As Time Permits & Is Most Useful: http://chartingstock.blogspot.com/

-------------------------------------------------------

Disclaimer--The Above is For Educational Purposes Only, Please read the full Disclaimer below. STOP-LOSS ORDERS MAY BE A HELPFUL TOOL TO LIMITING LOSSES EARLY.

This is neither a solicitation nor an offer to Buy/Sell futures, options, commodities, stocks or any investment vehicle whatsoever. Futures, Options, Stock, Currencies, Commodities and all trading HAS LARGE POTENTIAL RISK.must be aware of the risks and be willing to accept them in order to invest in the futures and options markets (and all equity, currency, commodity markets). DON'T TRADE WITH MONEY YOU CAN'T AFFORD TO LOSE. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. All trades, patterns, charts, systems, etc., discussed herein and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations.

Stock market investments are risky. They don't provide fixed returns and past performance doesn't guarantee future results. All securities investments entail the risk of great and sudden financial loss. Returns vary and you may have a gain or loss when you sell your securities. No assurance is given that anything described here will be successful. The message contains neither recommendations nor solicitations to buy or sell securities. Documents are published solely for information and educational purposes and do not form the basis of any contract or commitment whatsoever. Nothing in the above should be construed as investment advice, either on behalf of particular stocks or in regard to overall investment strategies.

No representation or warranty, expressed or implied, is made as to the fairness, or correctness of the information contained in the above. Projections and opinions expressed constitute the personal opinions of the authors and are set forth for informational and educational purposes only. I am not liable for damages caused by actions taken as a result of the information in the above sites, guides, newsletters and e-books or any of their following pages, ads and links. The expressed analysis and projections are subject to change without notice. No information above constitutes a recommendation to buy, sell or hold any security, financial product or instrument discussed therein. We do not offer or provide any investment advice or opinion regarding the nature, potential, value, suitability or profitability of any particular security, portfolio of securities, transaction or investment strategy, and you shall be fully responsible for any investment decisions you make, and such decisions will be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance, and liquidity needs.

http://chartingstock.blogspot.com/

Real Time At Twitter: http://twitter.com/chartingstock

Stop-Losses Can Save You Thousands-Please Read:

http://chartingstock.blogspot.com/2009/05/stop-loss-orders-can-save-you-thousands.html

BELOW MY POSTS & INTERNAL "http://chartingstock.blogspot.com/" LINKS ARE "SPONSORED ADVERTISEMENT LINKS" I HAVE NO CONNECTION WITH THESE SPONSORED ADVERTISEMENTS. PLEASE FOLLOW IN REAL TIME ON TWITTER AT: @CHARTINGSTOCK http://twitter.com/chartingstock Good Trading

© 2009 chartingstock All Rights Reserved

Charts Vs Fundamental Analysis-Benefits Of Using Charts in Trading Decision Making & Interperting Fundamental Economic or Earnings News

B"H

Disclaimer: This is for educational purposes only. Full Disclaimer below. Comments & Suggestions Are Always Appreciated.

Please Remember Profit Protecting "Option Strategies" & Stop-Loss Orders May Help Protect Profits & Cap Losses Quickly.

Blog: http://www.chartingstock.blogspot.com/2009/05/stop-loss-orders-can-save-you-thousands.html

Real Time At Twitter: http://twitter.com/chartingstock

A BRIEF OVERVIEW OF BASIC CHART ANALSYIS & ITS ADVANTAGE OVER FUNDAMENTAL ANALYSIS

*Fundamnetal Analysis-Citibank-A Company With A Great P/E Went On To Fall More Than 95% From 2007-2009. Berkshire Hathaway Focusing On Fundamental Anaysis Fell More Than 50% Twice From 1998-2009

*Benefit Of Using Technical Analysis, Price Action in Assiting Trading Decisions

*Very Important To Note Difference Between Trending Markets & Range Bound Markets & How Moving Averages & Bollinger Bands Should Be Used in These Different Types of Markets

FUNDAMENTAL ANALYSIS-HOW CITIGROUP WHICH HAD AN EXCELLENT P/E RATIO IN 2006 FELL MORE THAN 95% THROUGH 2009 & HOW BERKSHIRE HATHAWAY FELL MORE THAN 50% TWICE 1st FROM 1998-2000 & AGAIN FROM DECEMBER 2007-MARCH 2009

Twice today I spoke with friends interested in learning about "Investing". Both friends were quite intelligent but their line of questioning indicated major warning signals in their approach to stock selection & trading decision making. Both friends focused on fundamental analysis including Gross Domestic Product Numbers (GDP) released this morning & Price to Earnings Ratios (P/E). While most investors pay some attention to these statistics, in the past 30 years there has been a realization that Stocks with excellent P/Es can fall dramatically & that positive Economic figures such as GDP numbers can still be met with selling. Citibank (Quote=C) had an excellent P/E ratio as recently 2006 before falling more than 95%. Argueably one of the best Fundamental Investors of all time, Warren Buffett proves the intermediate shortfalls of not heeding warning signals from moving averages. Focusing on Fundamental analysis, Berkshire Hathaway fell From June 1998 through March 2000 more than 50%. After rising for many years thereafter, Berkshire once again proved the problem of not heeding warnings from technial analysis from December 2007 through March 2009 when Berkshire fell more than 55%

TECHNICAL ANALYSIS-BENEFITS OF USING PRICE ACTION TO GUIDE BUY & SELL SIGNALS & HOW MOVING AVERAGES & BOLLINGER BANDS ASSIST TRADERS IN DETERMINGIN BUY & SELL SIGNALS & THE DIFFERENCE BETWEEN "TRENDING MARKETS" & "RANGE BOUND MARKETS"

Justin Mamis in his books "When To Sell" & "How To Buy" notes that price reaction to economic news or earnings data is far more revealing than the data itself. If a company comes out with seemingly amazing earnings but drops 10% in after hours trading it is likely that tradersfocusedon another piece of data. Alternatively, if appealingly less than stellar GDP numbers are released & yet the market rallies it is likely that their are underlying strengths that are serving as a base for the market.

It is very important to note that markets their are major differences in using moving averages & Bollinger Bands in markets that are trending versus marekts that are range bound.

Range Bound: moving sideways between levels of lower resistance & upper support use moving averages to assist in interpeting importnat levels within the range.

Trending Markets: or rising consistently with pullbacks to rising levels of support use moving averages & Bollinger Bands to help guide possible purchase levels & a method to confirm or invalidate trends.

Chart Analysis assists traders in focusing on arguably the most important piece of data to traders, price action. A stock or other asset that is able to rise above it's 200 day movingaverage (average closing price of the stock for the past 200 trading days) it is a sign of strength & upward price momentum in the stock. If an asset falls below the 200 day moving average, it is a sign that their are problems being revealed in price action. A very simple rule of thumb some passive traders use is buying assets as they cross above their 200 day moving average & selling assets as they cross below their 200 day moving average. A closer analysis of charts would implement other key moving averages including the 21 day, 50 day & 100 day moving averages amongst others. Moving averages act as support for assets as they fall & they act as resistance as assets rise.

Even further analysis may include Bollinger Bands which can be used to measure both 1) assets that are "overbought" or "oversold" or 2) an asset that has begun a new trend. In "range bound" markets i.e. trading between a defined up level & low level BollingerBands can provide 1 factor used in determining overbought or oversold levels. If a market is "trending" i.e. rising steadily or falling steadily, Bollinger Bands can be used to both confirm the trending nature of the asset & measure projected price targets consistent with the trend in place. There are many many more ways tointerpretprice action but Moving Averages & Bollinger Bands are two widely used basic measures traders can use to help identify possible price targets favorable for buying & selling stocks, commodities or currencies.

P/E RATIOS, ECONOMIC NEWS & ALL FUNDAMENTAL ANAYSIS WILL BE REFLECTED IN PRICE ACTION-CHARTS WILL REVEAL THE MOST IMPORTANT INFORMATION

The cumulative information from P/E ratios, GDP figures etc. will be reflected in price action. Using charts to read past headline economic & earnings materials is an excellent way to interpert successful buy & sell signals. It is important to note that chart analysis is only 1 part of successful investing. Learning to use these pieces of information along with proper risk managment techniques including the consistent implementation of stop-loss orders or protective options as a hedge are all vital steps towards investing success.

For more on moving averages specifically please visit this link from Sandy Jadeja fromODLSecurities who is a regular Technical Analysis contributor at CNBC Europe.

http://www.cnbc.com/id/15840232?video=1162331342&play=1

© 2009 CNBC, Inc. All Rights Reserved.

Good Trading

-------------------------------------------------------

Posts Available at My Blog: http://chartingstock.blogspot.com/

Follow in Real Time on Twitter: http://twitter.com/chartingstock

@chartingstock

Comments & Suggestions Are Appreciated.

The Proper Use of Protective "Hedging" Options, Stop-Loss & Trailing Stop-Loss Orders May Be Helpful & Can Save You Thousands

http://www.chartingstock.blogspot.com/2009/05/stop-loss-orders-can-save-you-thousands.html

If You Are Reading This Post On A Secondary Web-Site--Please Be Aware That Things Often Change

Very Rapidly In A Trading Day. Real Time Updates on Twitter Are Most Up To Date:

http://www.twitter.com/chartingstock

The Main Site Will Be Updated As Time Permits & Is Most Useful: http://chartingstock.blogspot.com/

-------------------------------------------------------

Disclaimer--The Above is For Educational Purposes Only, Please read the full Disclaimer below. STOP-LOSS ORDERS MAY BE A HELPFUL TOOL TO LIMITING LOSSES EARLY.

This is neither a solicitation nor an offer to Buy/Sell futures, options, commodities, stocks or any investment vehicle whatsoever. Futures, Options, Stock, Currencies, Commodities and all trading HAS LARGE POTENTIAL RISK.must be aware of the risks and be willing to accept them in order to invest in the futures and options markets (and all equity, currency, commodity markets). DON'T TRADE WITH MONEY YOU CAN'T AFFORD TO LOSE. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. All trades, patterns, charts, systems, etc., discussed herein and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations.

Stock market investments are risky. They don't provide fixed returns and past performance doesn't guarantee future results. All securities investments entail the risk of great and sudden financial loss. Returns vary and you may have a gain or loss when you sell your securities. No assurance is given that anything described here will be successful. The message contains neither recommendations nor solicitations to buy or sell securities. Documents are published solely for information and educational purposes and do not form the basis of any contract or commitment whatsoever. Nothing in the above should be construed as investment advice, either on behalf of particular stocks or in regard to overall investment strategies.

No representation or warranty, expressed or implied, is made as to the fairness, or correctness of the information contained in the above. Projections and opinions expressed constitute the personal opinions of the authors and are set forth for informational and educational purposes only. I am not liable for damages caused by actions taken as a result of the information in the above sites, guides, newsletters and e-books or any of their following pages, ads and links. The expressed analysis and projections are subject to change without notice. No information above constitutes a recommendation to buy, sell or hold any security, financial product or instrument discussed therein. We do not offer or provide any investment advice or opinion regarding the nature, potential, value, suitability or profitability of any particular security, portfolio of securities, transaction or investment strategy, and you shall be fully responsible for any investment decisions you make, and such decisions will be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance, and liquidity needs.

http://chartingstock.blogspot.com/

Real Time At Twitter: http://twitter.com/chartingstock

Stop-Losses Can Save You Thousands-Please Read:

http://chartingstock.blogspot.com/2009/05/stop-loss-orders-can-save-you-thousands.html

BELOW MY POSTS & INTERNAL "http://chartingstock.blogspot.com/" LINKS ARE "SPONSORED ADVERTISEMENT LINKS" I HAVE NO CONNECTION WITH THESE SPONSORED ADVERTISEMENTS. PLEASE FOLLOW IN REAL TIME ON TWITTER AT: @CHARTINGSTOCK http://twitter.com/chartingstock Good Trading

© 2009 chartingstock All Rights Reserved