Support & Resistance

Good Afternoon,

Thanks for listening in on IBFX's "Open Discussion on Technical Analysis" webinar last evening. We stressed the importance of fundamental analysis when setting up a technical analysis-based trade (and trading parameters).

Posted By: 

Brian Kahn

Brian provides regular commentary focusing on the relationships between various financial markets. An experienced trader and portfolio manager with over 15 years in the markets, Brian relies on fundamental and technical analysis to create trading plans for each and every market entry.

Good Afternoon,

For additional reads on the Bernanke statements, please refer to fundamental analysis stories such as this Bloomberg article.

Yesterday's post contained a very important statement. It was the last sentence, which read: "continue to do your fundamental analysis every day". That is very important, especially when Central Bankers are speaking. Today, Bernanke gave us the fireworks.

Posted By: 

Brian Kahn

Brian provides regular commentary focusing on the relationships between various financial markets. An experienced trader and portfolio manager with over 15 years in the markets, Brian relies on fundamental and technical analysis to create trading plans for each and every market entry.

Good Afternoon,

Looking forward to tomorrow night's IBFX "Open Discussion on Technical Analysis" webinar. Will we be able to talk about a break lower in the EUR as the USD shines on as the shining star?

Past performance is not indicative of future results

Posted By: 

Brian Kahn

Brian provides regular commentary focusing on the relationships between various financial markets. An experienced trader and portfolio manager with over 15 years in the markets, Brian relies on fundamental and technical analysis to create trading plans for each and every market entry.

Good Afternoon,

I reviewed the massive fundamental data week that lies ahead on Friday - please refer to that for the preview. Also, I will be conducting another IBFX Webinar on Wednesday night. I hope you can join!

Today, we saw some stabilization in the AUD/USD market, but beware of the fundamental reason why the AUD is weak.

Posted By: 

Brian Kahn

Brian provides regular commentary focusing on the relationships between various financial markets. An experienced trader and portfolio manager with over 15 years in the markets, Brian relies on fundamental and technical analysis to create trading plans for each and every market entry.

Good Afternoon,

Fundamentally, we were weak across the board. Technically, is that a boon or bust for equity prices at these levels? Definitely short-term it seems to be a boon, as long as the Fed doesn't have any change of plans...Claims were well above expectations - need more data here to see if this is a pattern. Manufacturing data, which I expected to rebound was sluggish again.

Posted By: 

Brian Kahn

Brian provides regular commentary focusing on the relationships between various financial markets. An experienced trader and portfolio manager with over 15 years in the markets, Brian relies on fundamental and technical analysis to create trading plans for each and every market entry.

Good Afternoon,

That was quick. Four days and we moved from 1625 to 1650 in the SPX. We are now at a "psychological resistance level" and we are also very close to the upper trend line channel. So will we zoom from 1650 to 1700 and the top of that channel just as quickly? If you are a seller, are you still short? If you want to sell, is this a good level to try it out at?

Posted By: 

Brian Kahn

Brian provides regular commentary focusing on the relationships between various financial markets. An experienced trader and portfolio manager with over 15 years in the markets, Brian relies on fundamental and technical analysis to create trading plans for each and every market entry.

Good Afternoon,

Just a quick fundamental update as it looks like the week's technicals got off to a rather slow start. Just to note though, no sellers yet in the equity markets.

Retail sales came out today - a bit better than expected. Empire State and Philly Fed on the manufacturing side. These should rebound a bit from poor readings last month. Claims - employment picture continues to get better. Inflation data - really? Consumer sentiment - should be up as the markets are up.

Posted By: 

Brian Kahn

Brian provides regular commentary focusing on the relationships between various financial markets. An experienced trader and portfolio manager with over 15 years in the markets, Brian relies on fundamental and technical analysis to create trading plans for each and every market entry.

Good Afternoon,

I am counting the SPX points since the Non Farm Payrolls report. We hit a high of 1632ish, so that makes 34 points or just over 2% in 5 trading days. Time to back off as we still are at that first "resistance" level I talked about in past articles.

Posted By: 

Brian Kahn

Brian provides regular commentary focusing on the relationships between various financial markets. An experienced trader and portfolio manager with over 15 years in the markets, Brian relies on fundamental and technical analysis to create trading plans for each and every market entry.

Good Morning,

So with a light data week, we come to our first "technical" level in the SPX. We have 1625 as a psychological level as well as this short term trend line:

Past performance is not indicative of future results

Posted By: 

Brian Kahn

Brian provides regular commentary focusing on the relationships between various financial markets. An experienced trader and portfolio manager with over 15 years in the markets, Brian relies on fundamental and technical analysis to create trading plans for each and every market entry.

Good Morning,

That didn't take long. We broke out above 1600 and already got to the 1625 area. Will this "psychological" area that is combined with the DOW at 15k be enought to stop the insanity?

Posted By: 

Brian Kahn

Brian provides regular commentary focusing on the relationships between various financial markets. An experienced trader and portfolio manager with over 15 years in the markets, Brian relies on fundamental and technical analysis to create trading plans for each and every market entry.