Do we have the makings of a bottom?

Hi there,
and welcome back to Stock Charts R US blog.


After some time we finally have the makings of a technical bottom. As the diagram shows above, one of the more often occurring price patterns (that may signal an end to the previous trend) is what is known as the 'double bottom'. This is where higher highs and higher lows are put in. In essence, the reverse of what had previously been happening (ie lower highs and lower lows). The public is enamored with the Bearish chatter and this is roughly about the time a bottom comes in a typical US Presidential election cycle. Refer to chart-of-the-day, Dec, 2007 study: http://www.chartoftheday.com/20071228.htm?T

One note of caution, today is the start of a 2 day meeting of the FOMC, we will have to see the market close above 138.83 (high of Jan, 2008) this Friday to confirm this price formation.....
Keep our proverbial fingers crossed,

Brian Beamish FMA FCSI

The chanel goes on and on

Hi there,
and welcome back to Stock Charts R US blog.


The bear market churns away as financial stocks continue to feel the pain of poor earnings reports. GE's report of a larger than expected loss late last week brought the recent four week market rally to a halt just as it was approaching the upper end of its current trading range. The market shall be contained within the current trading range until either the $140 or $125 levels are broken. Given the financial sector's poor earnings reports released of late a bullish breakout isn't likely soon. Regardless, it is out of bear markets that new bulls are born. So with this in mind (and the coincidental indicator of what to expect during a typical US Presidential election year) look for a better second half to the year....BUT NO BUY YET!
Brian Beamish FMA FCSI

Hurry up and go no where

Hi there,
and welcome back to the Stock Charts R US Blog.

The bearish chart pattern registered in October through December of 2007 is still comfortably in place. While the market may have found short term support at or near the 4 year business cycle moving average (currently near $127) there is yet to be any sort of bullish chart pattern registered. In fact, the recent trading range between $125 and $140 may be setting up for a push towards $113 should the recent lows fail to hold [($152 {Dec peak} - $125 {Jan low}) - $140 {Feb peak}]. Only time will tell, but my bet is not to expect too much for the next few months as a typical US Presidential election year sees a poor first half followed by a better second half of the year......

In other words, hurry up and do nothing,
Until next blog,
Brian Beamish FMA FCSI :)