MIDAS Method | Wall St. Cheat Sheet

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Chart Junkie: Jeffries is Vulnerable, Energy is Interesting, and Wynn Resorts is on the Brink

Posted on 23 October 2009. Tags: Brokerage, Chart Junkie, Charts, Corey Rosenbloom, Energy, ERX, FusionIQ, Investing, JEF, Markets, MIDAS Method, Precision Capital Management, Stocks, Technical Analysis, Trading, VWAP, WYNN

JEF

Our partners FusionIQ state: “Jeffries (NYSE: JEF) may be the next brokerage firm to struggle. After scoring a major top (orange dotted semi-circle) shares then broke what had been longstanding support (double red lines). Once broken this support became a big resistance zone which shares then subsequently failed at on its recent snap back rally. Of a more critical note is the fact that JEF shares are tesitng a longer term trend line (green line) for the third time in a relatively short period of time. The high frequency of trend line tests in such a short period of time suggest that a likely trend break is coming soon. A close below $ 14.00 would be a crucial breakdown and suggest a move to the $ 10.00 to $ 9.00 region.
Raising the odds we are right here is the fact that JEF shares have a low FusionIQ Master Rank Score of just 41 (out of a possible 100).” To learn how you can get an edge trading/investing with FusionIQ’s powerful platform, click here to watch my product review and take advantage of our special Wall St. Cheat Sheet 20% discount.

ERX

Precision Capital Management submits some more technical analysis candy: “We have posted Anchored VWAP charts here before, but that is only a part of Paul Levine’s MIDAS Method. The other part is the Topfinder/Bottomfinder (TBF) curve. When price pulls away from VWAP, a TBF curve is fitted to the first pullback. Because of the symmetrical relationship between the accumulation and distribution volume of a strong trend, the TBF curve will often predict when the fuel of a rally is consumed. Above shows a recent TBF curve for Energy Bull 3x ETF (NYSE: ERX), which began October 5 and ended October 21, 2009, which amply demonstrates what happens when the fuel runs dry. We are doing some exciting research to take MIDAS a step further and will regularly update our readers (free registration). Also, we encourage you to visit the new website of MIDAS experts David Hawkins and Andrew Coles, who recently wrote a three part series of articles in Technical Analysis of Stocks & Commodities, and who are doing some exciting new research of their own.” (Source: Precision Capital Management)

WYNN

Corey Rosenbloom, the Technical Analysis Professor, submits: Wynn Resorts (Nasdaq: WYNN) has come into a “Make or Break” support zone at the $60 per share level. Let’s take a look at its daily chart and note Fibonacci, Moving Average, and Bollinger Band support coming together just beneath price right now. (Source: Afraid to Trade)