Stock Market for Beginners

The market is heading toward a pivot point as support at the 1300 level and downward-sloping resistance converge. Look for a big move once there’s a breakthrough in either direction.

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The market continues to stay in a rocky state even after the Fed decision to cut interest rates by $0.25.  We’re on the fence for a move in either direction, but it’s too difficulty to argue which way the ball will roll.

RSI hovers at the 50 level (neutral)
Price hovers at the 50-day and 200-day moving […]

 Market has been shaky for the last few months, but overall the market still looks healthy. The technicals look good, as seen in the chart below.

RSI indicator sloping up and crossing the 50 mark is bullish.
MACD crossover indicates a change in trend from the downswing, which is bullish.
Price is currently testing the 200-day moving average […]

The Federal Reserve Governors will meet on 9/18/2007 to make a decision on interest rates. Historically, this has been a good sign for the stock market. Take a look at this attachment on the Fed and historic rate cuts.
Will this time be the same or is it too little to late? The events […]

We are still in a fundamental and news-driven environment, but the technicals are becoming more bullish by the day and we may have potentially priced in most of the bad news. If you look at the VIX, which is the index for how volatile the market is expected to be in the coming month, […]

It’s been a hectic two weeks since I last left off. The market is still in limbo as investors are still trying to figure out the general direction. The economy still seems strong.

Stock Market For Beginners:

Price has broken through resistance line
RSI is at the crucial 50 level - look for strength upon a breakthrough of […]

Before I dive into this article, I would like to let you all know that I just finished my Product Management internship at Google and will be going on vacation to Peru in the following week, so I won’t be posting until I get back.
In last week’s stock market overview, I examined the correlation between […]

The volatility has continued to keep this market on its toes as investors continue to struggle to find direction. The underlying economy still appears sound, but credit concerns have continued to plague the market.
In the following three charts, I’ve annotated the S&P 500, the Volatility Index, and the Put/Call Ratio. You’ll find that the blue […]

The Federal Open Market Committee (FOMC) meeting today will be the most influential event of the month. With all the bad news that keeps piling up about the credit issues arising from loose lending in the past two years, this market needs to know that the Federal Reserve Bank is there to provide liquidity […]

The stock market has continued to be extremely volatile and the bears have taken control in the last two weeks. You can see the vast difference in volatility by comparing single-day movements between the run up from April to June and the wild fluctuations from June to August.

Stock Market Strategies for Beginners:

Price has broken through […]