In my opinion, far and away the most important thing to master in Wall Street is the tape.

Gerald Loeb

Power Trends Charted on Nasdaq and S&P 500

Mike Webster and Irusha Peiris recently discussed power trends on the Investing with IBD Podcast. Ajay Jani took the time to code the concept in an Excel document which shows power trends for both the Nasdaq and S&P.

The orange indicator in the charts that follow, highlights where the power trend is on. The Nasdaq chart goes back to 1984 and the S&P 500 back to 1962. Richard Moglen helped Ajay with data acquisition.

The Excel document created by Ajay can be downloaded here:

Stock Market Update – Visual Guide – Week of 5/25/20

The following three charts are based on @mwebster1971‘s Weekend Stock Market Update, The Raging Bull Rests.

The first chart focuses on the daily activity as well as a summary of the moving averages at the close of the week.

As we move into next week, there are key levels to maintain both on the upside and downside.

It’s always good to see the view from 30,000 feet. The 5-minute chart that follows provides that perspective.

Technical Analysis of Two Historical Power Trends

Given we started a power trend on 5/8/2020, the topic has been a common theme of @mwebster1971‘s Weekend Stock Market Update.

In a previous post, What is a Power Trend and How to Spot it on a Chart, I outlined the specifics needed to start a power trend. I also included examples of two power trends, one in 2016 and one in 2018.

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Stock Market Update – Visual Reference – 5/18/20

Following are three charts that you can use as a visual reference for @mwebster1971‘s Weekend Stock Market Update for the week of 5/18/2020.

The first chart shows the 30,000 foot view of the week’s activity. I’ve highlighted the chart with colors to emulate a candlestick look on top of a 5-minute chart.

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Buying Stock on Pullback and Upside Reversal

I recently used a pullback followed by an upside reversal to buy shares in two stocks. One of the buys was within a base, which I used as an early entry. The second was a buy to add to an existing position.

It’s worth noting, I am not recommending either stock. My intention is to show how I used a pullback and reversal for two past trades.

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Vertical Violations

Justin Nielsen wrote an excellent article Vertical Violations Can Help Avoid Bear Market. I created the following chart with my interpretation of a vertical violation from May of 2010.

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Post Analysis of Mastercard (MA) Trade

Below is a post analysis of my recent trade of Mastercard (MA). All the details of the trade are shown in the chart.

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