As of 05/16/2022   Indus: 32,223 +26.76 +0.1%     Trans: 14,335 -121.64 -0.8%     Utils: 994 +1.06 +0.1%     Nasdaq: 11,663 -142.21 -1.2%     S&P 500: 4,008 -15.88 -0.4%	YTD -11.3%   -13.0%    +1.3%   -25.5%   -15.9%	Targets    Overview: 05/15/2022     33,500 or 30,500 by 06/01/2022   15,500 or 13,700 by 06/01/2022   1,050 or 940 by 06/01/2022   12,800 or 11,000 by 06/01/2022   4,250 or 3,850 by 06/01/2022
CPI (updated daily): on 5/13/22

As of 05/16/2022   Indus: 32,223 +26.76 +0.1%     Trans: 14,335 -121.64 -0.8%     Utils: 994 +1.06 +0.1%     Nasdaq: 11,663 -142.21 -1.2%     S&P 500: 4,008 -15.88 -0.4%	YTD -11.3%   -13.0%    +1.3%   -25.5%   -15.9%
Targets    Overview: 05/15/2022     33,500 or 30,500 by 06/01/2022   15,500 or 13,700 by 06/01/2022   1,050 or 940 by 06/01/2022   12,800 or 11,000 by 06/01/2022   4,250 or 3,850 by 06/01/2022
CPI (updated daily): on 5/13/22

Tuesday 5/17/22. Slider Trading Quiz!

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I show another slider trading quiz featuring PPG Industries (PPG) stock.

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Here's a symbol list of 64 chart and candlestick patterns (13 "investment grade" candle patterns) found in today's securities using my version of Patternz: AXDX, ALL, DOX, AEE, APA, ARCB, ATO, BERY, BMY, BBW, CBT, CALM, CVX, CSCO, CLF, CNA, CMTL, CAG, DSGR, WIRE, FLEX, FRD, GPS, GPRO, GFF, HIG, HTLD, HSII, HP, HNI, IDA, IVC, KALU, KMT, KFRC, KSS, KLIC, LZB, LANC, M, NFG, NXGN, OXY, OMI, PANW, PFE, PCG, PRU, KWR, RMBS, REV, RLI, SSYS, SUM, TKR, TG, VMC, IHE, DBA, PJP, UNG. Clink this link for details (pattern type, start and end dates).

For a list of small patterns (those a few days wide) click this link.

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The following table shows where Fibonacci retrace values of the day's high-low range are plus pivot points, calculated on the Dow industrials, sorted by value. When several are near each other (small differences), the area might act as support or resistance.

-- Thomas Bulkowski

Monday 5/16/22. Market Monday: The Week Ahead

• My Prediction
• A Brief Look Back
• Options Expiration
• Swing Traders: Pivot Points
• Earnings, Chart Patterns & Industries

My Prediction

I show the Dow transports on the daily scale.

LHR is a head-and-shoulders bottom with L being the left shoulder, H is the head, and R is the right shoulder. The chart pattern suggests a rise that was achieved, or close to being achieved, at D.

More recently, pattern AB is a double top It confirmed as a valid chart pattern when the index closed below the red line, near C.

What does all of this mean going forward? The quick drop and recovery after C is what's called a pullback. After a pullback, there's a 54% chance that the index will resume the downtrend (according to my book, Encyclopedia of Chart Patterns, 3rd edition (#ad))

Because the predicted trend is about random, it doesn't help us, does it? However, the index is resting on support (created by the recent valleys near the same price) so my guess is the index will continue moving higher. The index dropped enough days in a row that a decent rebound is overdue.

A Brief Look Back

The following is a brief review of how the markets performed over time. The numbers refer to the close-to-close move in the Dow industrials.

For the Week...

Year to Date...

Options Expiration

Many options expire this week, so traders will be looking to close out their positions, and that suggests increased volatility (large daily price swings).

Swing Traders: Pivot Points

The following is based on an SFO article in December 2004 by John Seekinger, titled, "Take a two-dimensional approach." He offers these tips.

• Seekinger doesn't look at the range of S2 to R2 as support and resistance levels. Rather, he considers them oversold (S) and overbought (R) areas.
• S2 to R2 range of values across daily, weekly, and monthly periods: If two values are close together then they lend more significance to the area.
• If the market trends on day 1, the odds rise tremendously that the market will be range bound between daily S1 and daily R1 the next day.
• In a quiet market when traders are waiting for an important earnings announcement or economic report, look for daily R1 and S1 levels to hold and for the market to return to the daily pivot.
• A move outside of daily R1 or S1 usually does not mean a breakout.
• The odds suggest that the entire week's price action will remain between weekly R2 and S2.
• Avoid going long when the market moves above weekly R2 (it's overbought) and avoid going short when price moves below weekly S2 (oversold).
• Consider going short at weekly R1 or long at weekly S1 with a profit objective of the weekly pivot.
• Consider going long at weekly S2 or short at weekly R2 with a profit objective of weekly S1 or R1, respectively.

Here are the formulas:

Earnings, Chart Patterns & Industries

Earnings season is either underway or should be starting soon. The sessions could be more volatile.

Here's a symbol list of 137 chart and candlestick patterns (13 "investment grade" candle patterns) found in today's securities using my version of Patternz: ABT, AYI, ADBE, AEIS, AYX, AMED, AMN, APA, AMAT, ATR, AWI, ADSK, AVY, AZTA, BALL, BZH, BERY, BIIB, BMY, BBW, CBT, CAL, CLS, CF, CVX, CHS, CLNE, COP, COTY, CROX, DVN, EXP, EIX, EOG, EPAM, RE, FAST, FDX, FIS, FLEX, FORM, FRD, GPRO, GGG, GFF, HLIT, HSII, HP, HSIC, JBHT, IEX, IDXX, ILMN, NVTA, JBLU, KALU, KMT, KFRC, KLIC, LRCX, LEG, MRO, MCHX, MTRX, MCO, NFG, OXY, ORI, OLN, OXM, PANW, PTEN, PCG, PGR, KWR, RMBS, RGS, RGA, RNG, RCKY, ROST, RES, ^GSPC, SLB, SEE, NOW, SKX, SUM, TECH, TDOC, TDC, TER, TEVA, TMO, TKR, TOL, TREX, VEEV, VMC, WAT, WSO, WMB, WOLF, WWW, XEL, ZBRA, IYE, ITB, IYH, IEO, IHI, EWK, EWZ, EWC, EWS, THD, IBB, PBE, PHO, IXC, XLE, GLD, XLV, XHB, XAR, USO, VHT. Clink this link for details (pattern type, start and end dates).

For a list of small patterns (those a few days wide) click this link.

The below industries were the best (rank 1) or worst performing of those I follow.

-- Thomas Bulkowski

Friday 5/13/22. Pattern Trading Setups for the Weekend.

$ $ $

Here's a symbol list of 145 chart and candlestick patterns (13 "investment grade" candle patterns) found in today's securities using my version of Patternz: ANF, ACN, AYI, AEIS, AJRD, ATSG, AA, ALKS, AEE, AEL, AXP, ABC, AMN, APH, APA, AMAT, AWI, AGO, ADSK, AVNT, AXS, BCPC, BAX, BERY, BA, EPAY, BMY, BBW, CBT, CALM, CAL, CE, CNC, CNP, CENX, CIEN, CLF, CRH, CMI, DDS, DFS, DRQ, EIX, EOG, EXC, EXPD, FDX, FLEX, FTNT, FCX, GME, GNW, GS, GPRO, GFF, GES, HIG, HSII, HELE, HP, HNI, IDXX, KALU, KFRC, KLAC, KLIC, LHX, LH, LRCX, LEG, LNC, LXU, MHO, MAS, MRK, FB, MU, MCO, MS, NFG, CNR, OXY, OLN, OMCL, ASGN, OXM, PAYX, PCG, PRU, PEG, KWR, RMBS, REV, SEE, SMTC, SCCO, LUV, SUM, TPR, TKR, TSCO, RIG, TREX, SLCA, VMC, WWW, IHE, FXI, IYH, SLV, EWA, EWO, EWH, EWM, EPP, EWY, EWT, TUR, EWU, PBE, PXJ, PJP, IEV, MXI, XLP. Clink this link for details (pattern type, start and end dates).

For a list of small patterns (those a few days wide) click this link.

$ $ $

You can find setups based on a Fibonacci retrace by clicking on the link.

The following patterns were found manually, not using Patternz. Mr. Bulkowski has excluded any securities he owns from appearing in the list. However, he may add any of the securities listed to his portfolio at any time, just as you can.

In the table below, the red and green colors are based on the historical breakout direction for the associated chart pattern. If a high and tight flag appears, the start and end dates highlight the flagpole only and not the flag.

For details about the chart patterns, click here.

-- Thomas Bulkowski

 

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