Chart Reading Lessons | Stock Market Notes | May 5, 2015

Chart reading lessons are always more powerful when money is on the line but…

Learning the best technical setups BEFORE you need them is the surest path to trading success.As you develop your trading plan, remember you don’t need every chart pattern, only the ones you feel comfortable trading.

There is more to the charts than simply looking for trends, moving averages and support. There are deeper clues to price action. When you learn to recognize these subtle, but obvious scenarios, you immediately improve your decision making.

Today we review some key points you should learn to notice, so you can set the proper trade expectations before the market opens.

Chart Reading Lessons: Game Plan Notes-

  • SPY/general market no help for a bias as it was rejected at $212 again.
  • More short sales in my game plan than longs.
  • Retail and housing stocks week and in confirmed new downtrends.
  • Financials strong.

Chart Reading Lessons: Going Deeper into Price and Volume

BA accumulation price action and volume @ support (exhaustion type move)

News: Sunday- Why Boeing has Outperformed the Dow this Year.

Shares of The Boeing Co. (NYSE: BA) closed at $144.67 on Friday, up more than 11% for the year to date. Even at that, though, the shares have given back nearly half the gain they had posted by mid-February and now trade at around their level of late January.

That’s still good enough to be the fourth best performer among the Dow 30 stocks and 10-times better than the DJIA itself which is up just 1.1% for the year-to-date.

More of the Dow stocks have posted year-to-date gains (19) than have posted declines. Of the top 5 gainers, Boeing is the only industrial, although General Electric Co. (NYSE: GE) with a year-to-date gain of about 9.1% joins the aircraft maker as the only other industrial among the top ten. Continue reading…

Chart Reading Lessons


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JPM 2 inside days leading to a trend day. This is a powerful set up to game plan for.

Chart Reading Lessons

TASR: is long, but not a long today, 2X normal volume after a multi day run. This is a subtle but MUST KNOW lesson in chart reading.

Chart Reading Lessons

ADM is a long, but not a long today. 9 Well-bid days in a row make it unlikely to have another close above the open.

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