Following two rounds of heavy selling from an all-time high US Silica Holdings, Inc. (SLCA) has been trying to find at least an interim bottom over the last month.
Since SLCA is still in a downtrend, long positions are at greater risk. If prices fall to 25 and lower, the short-term reversal scenario should be reconsidered.
Disclosure: Long March 24 Calls.
Saturday, September 20, 2014
Wednesday, September 17, 2014
WDC has started its next correction within a long term uptrend. Two previous corrections found support at the rising trendline (pink). The weakening momentum suggests the trendline may not hold this time and price may test the lower boundary of Raff regression channel.
WDC has broken down a medium uptrend and a tight consolidation on the daily chart and closed below 98. This price action triggered a sell signal on my intermediate horizon PnF chart with a price objective at 88-92. A rise to 103 will negate this scenario.
Monday, August 11, 2014
Monday, June 2, 2014
Monday, May 12, 2014
I wrote in my last post that a consolidation in the SPX within a bigger uptrend has rather bullish implications than bearish until the major trendline is broken. Today’s market action apparently supports this statement.
Friday, May 2, 2014
I am writing this post after reading Michael Harris’ article “A Top Formation in S&P 500 Index”. Michael has touched a subject of rigid, straightforward interpretations of consolidation patterns leading to mistaken conclusions of possible outcomes. I couldn’t agree with him more. The human brain is hardwired to look for and find repetitive patterns even in an environment where they don’t exist. Rather than trying to fit the chaotic price movement of a loose consolidation into one of the preconceived patterns let’s look at the ongoing consolidation in the S&P 500 within a broader price action context.