- Posted by Greg Harmon on January 27th, 2015 at 2:12 pm
The engagement season is fast approaching with valentine’s Day only 2 weeks away. Between this season and Christmas diamond dealers do a hell of a lot of their business. All is great when you know the answer before you ask the question and put a diamond on her finger. But what happens when the answer is not what you planned? Yuck.
You cant just crush that diamond even though that’s what you might want to do. Its the hardest substance on earth. They make big mining drill bits out of it, for gosh sakes. If you really need to break a diamond look to stock charts instead. They happen and break, both up and down, all the time.
The chart in Monsanto ($MON) is one example. This stock shows a clear diamond has formed in the orange space. Starting in a tight consolidation that expands and then tightens again. This pattern is often talked about as a topping pattern, but it can be a continuation pattern as well. From this chart a continuation higher is where I will place my bias.
That is because the momentum indicators are turning to the upside. The RSI is making higher lows as it rises and the MACD has crossed up and is rising. A move out of the diamond looks for a comparable move to the one that preceded entering the diamond. In this case a break higher would target the 132.50 area.
With that kind of a gain maybe you don’t need to crush that diamond engagement ring, but just use it as a down payment on the next bigger one for a better girl.
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The Longer Outlook in ….. The German DAX
Posted by Greg Harmon on January 27th, 2015 at 7:40 am
The German DAX spent most of 2014 in a tight range between 9000 and 10000. this led many to talk about the top of the […]
Bloomin’ Brands Stock is Sprouting Back Higher
Posted by Greg Harmon on January 26th, 2015 at 3:04 pm
Casual dining stocks have just been on fire over the last 6 months. All are trending higher and making it hard for a technical trader […]
Top Trade Ideas for the Week January 26, 2015: Bonus Idea
Posted by Greg Harmon on January 26th, 2015 at 8:00 am
Here is your Bonus Idea with links to the full Top Ten: Honeywell, $HON, has been slowly trending higher for a year, despite the set […]
Top Trade Ideas for the Week of January 26, 2015: The Rest
Posted by Greg Harmon on January 25th, 2015 at 5:00 pm
SPY Trends and Influencers January 24, 2015
Posted by Greg Harmon on January 24th, 2015 at 9:02 am
A weekly excerpt from the Macro Review analysis sent to subscribers on 10 markets and two timeframes. Last week’s review of the macro market indicators […]
The Longer Outlook in ….. The Nikkei Average
Posted by Greg Harmon on January 23rd, 2015 at 7:40 am
Japan, the Land of the Rising Sun. The Land of a lost decade of stock returns. However you see it, Japan is a major economic […]
Assembling a BioTech Trade in Assembly Biosciences
Posted by Greg Harmon on January 22nd, 2015 at 2:46 pm
Biotech has been a hot area for over a year. And every time it looks like the top may be in and pullback underway prices […]
The Longer Outlook in ….. US Treasuries
Posted by Greg Harmon on January 22nd, 2015 at 7:40 am
US Treasuries were one of the stories of 2014. Not one pundit or economist surveyed expected them to rise in price in 2014. Yet they […]
International Paper is Different This Time
Posted by Greg Harmon on January 21st, 2015 at 2:34 pm
In early December, International Paper ($IP) made the Top 10 Trades of the Week as it made a 14 year high at 55. The trade […]
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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