Precision Capital Management submits: Though silver doesn’t take the headlines like gold does, it has actually been stronger than gold in this latest rally.  That’s why it caught our eye on November 19 when it reversed from strong pivot resistance in the form of Yearly R[esistance]1, Monthly R2, and Quarterly R1.  Though many technicians follow daily pivots, the longer time frames are important to follow as well.  The latest reversal in SLV indicates there was not institutional support in the mid 18′s and may be a leading indicator of weakness in the precious metals rally.  We recently updated the free TradeStation pivot indicator pictured above.  To download, you must register first.

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Consumer Credit

This first chart from Michael Panzner shows a very disturbing truth for bulls who are holding their breath. (Source: The Big Picture)

SPY

The Professor of Technical Analysis, Corey Rosenbloom, shows us that bulls are buying the dips and bears are getting ripped. (Source: Afraid to Trade)

ES Pivots

Precision Capital Management takes a step back and looks at how the S&P Futures are trading relative to their pivots: “A relatively simple way to calculate support and resistance is with a formula that floor traders have used for years and used to do by hand.  They would take the average of yesterday’s high, low and close to come up with the pivot point (PP).  Then they would calculate up to 3 levels of support (S1, S2 and S3) and resistance (R1, R2 and R3) using a simple formula.  Many traders use these levels not only on the previous day’s prices, but also on weekly, monthly, quarterly, semester and yearly time frames.  Intraday traders often look to the 60 minute pivot to guage strength of the market (above or below the 60 minute pivot) and to set price targets.  When several levels line up in confluence, they can serve as powerful support or resistance.  In the above chart, to the right we have a daily chart of the eMini S&P 500 that shows the weekly, monthly, quarterly, semester and yearly pivots, with each higher level being more thick than the last.  The yearly pivot served as powerful resistance in late August 2009, but price has recently broken through.  On the left is a 5 minute chart with the same levels as the daily chart, but also with the daily and intraday pivot levels plotted.  As of this morning (September 11, 2009), price has hit confluence resistance (composed of monthly R1, weekly R2 and daily R1) and backed off a bit.  Being able to keep track of all these levels on a single chart can give a significant edge to a trader, which is why we are offering this powerful, proprietary TradeStation pivot indicator for free on our website here.”

Monsanto

Trader Mark reminds us that expectations are high and to miss them is to hit the down button on the elevator. (Source: Fund My Mutual Fund)

ULTA

Our partners at FusionIQ offer this Chart of the Week: “Ulta Salon, Cosmetics & Fragrance (ULTA) a beauty retailer that provides prestige, mass, and salon products and services in the United States saw its second-quarter net income rise 56%, easily beating Wall Street analyst expectations. The beauty retailer posted a profit of $5.8 million, or 10 cents a share, compared with $3.7 million, or 6 cents a share, during the same period a year ago. Revenues for the period came to $273.5 million, a 10% increase over the same period last year. With a volume surge that was 10 times greater than the average volume over the last six months and a new FusionIQ BUY signal and a $ 22.00 target we believe ULTA offers an attaractive entry on pullbacks.” If you love charts but wish the trading signals were given to you by pros, click here to register now for a special Wall St. Cheat Sheet 20% discount to get your investing edge with FusionIQ’s powerful platform.

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