Saturday, November 25, 2006

Nasdaq Completes Triple Divergence Formation

The Nasdaq Comp finally completed a negative triple divergence setup on Friday. Again, with the low volume, shortened trading day, we'll have to see how valid it is. With the strength of the markets lately, one should definitely have a fairly tight protective stop in place in case the divergence fails.


Chart courtesy of StockCharts.com
Tags: , , ,

Monday, November 20, 2006

XAU Continues down - Still waiting on Nasdaq

The negative divergence in the XAU chart is still holding and it continues downward from our entry point.


Chart courtesy of StockCharts.com

However, the Nasdaq still hasn't invalidated a potential negative triple divergence...nor has it formed it yet. We're still waiting...


Chart courtesy of StockCharts.com
Tags: , , ,

Tuesday, November 14, 2006

Nasdaq Peaking?


A potential negative divergence is setting up on the Nasdaq Composite index once again. However, the upward momentum has been strong and we'll see if the divergence completes it's formation. Then it's a matter of waiting to see if the technical divergence can overcome the momentum, or whether we'll be stopped out again...


Chart Courtesy of StockCharts.com
Tags: , , ,

Monday, November 13, 2006

Negative Divergence in XAU


Well, after the nice run-up in the XAU, we got a negative divergence on Friday. This points to lower prices for the XAU in the short-term.


Chart courtesy of StockCharts.com
Tags: , , ,

Tuesday, October 31, 2006

Nice Move In XAU!

Since the positive divergence we got back on Oct. 10, we've had a nice runup in the XAU! This 10% move shows the power of divergence trading. The move may not be over yet, but a prudent trader would take some profits at this point and leave some on the table for more! In any case, if you are staying in, a good place to move your stop would be at the support level that has set up at about 127. Or, if you're more nervous, the 133 area is also a good place for a stop.


Chart courtesy of StockCharts.com
Tags: , , ,

Friday, October 13, 2006

XAU Looks to be Moving Up

We got our positive divergence on the XAU and we're in (green arrow on chart).


Chart courtesy of StockCharts.com
Tags: , , ,

Tuesday, October 10, 2006

XAU turns up - No Triple Divergence on NASDAQ

The NASDAQ Comp formed a higher high on the modified stochastics, so no triple divergence this time. A double may form at some point, but we'll have to wait for that. This is not to say that the index may not head down from here, but under the divergence method, we'll wait for the next setup.


Chart courtesy of StockCharts.com

The XAU on the other hand, did form a positive divergence today. Therefore the chances look good that the XAU will be headed higher in the short-term.


Chart courtesy of StockCharts.com
Tags: , , ,
 
Web jtresuz.blogspot.com