Price Expansion and Retraction: The Rubber Band Effect

Small Cap Stocks are Long Overdue to Rally Higher

It may be time to buy small-cap stocks again, say analysts.

As of October 2019, the gap down in small caps brought valuations to their most attractive levels in years, noted CNBC, giving investors a long-term buy and hold opportunity. Plus, small cap stocks are less affected by global trade conditions given their domestic focus.

These Technical Indicators Warned us of the Dow Jones’ Decline Beforehand

In early October 2019, markets plummeted.

The Dow Jones fell 800 points in just two days on trade war fears, impeachment news, and slowing growth. The ISM September 2019 survey pointed to contraction at less than 50.

How to Trade the Parabolic Stop and Reverse (SAR)

The Parabolic Stop and Reverse (SAR), commonly known as Parabolic SAR is a trend following indicator that highlights current price direction.

It also provides entry and exit signals as well with dotted lines.

Using the Chaikin Oscillator to Stay on the Right Side of the Market

Any time you use technical analysis, confirmation is essential.

If you’re not willing to confirm, you’re doing yourself a great disservice. In fact, at no time will I ever just use Bollinger Bands (2,20), MACD, relative strength, or Williams’ R% alone.

That’s an amateur, foolish move.

Two Simple Tools to Spot Reversals in the Fear Gauge

2018 and 2019 will go down in history as one of the most volatile periods on record.

But believe it or not, one of the most consistent ways to make money on the market is by trading excessive fear, as dictated by the Volatility Index.

Price Expansion and Retraction: The Rubber Band Effect

If you pull a rubber band too far, too fast, what happens?

It snaps back, right? The same thing happens with stocks, indexes, and currencies. If they’re pulled too far in one direction, eventually they’ll snap back and revert to back to the mean. In fact, we see it happen all the time.