Nascent Reversal
BARRON’S is reporting, the software sector is ready for a possible short-squeeze.
The chart shows penetration of support into a spring condition followed by a slight rebound higher and potential ‘test’ (not advice, not a recommendation).
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The Danger Point®, trade mark: No. 6,505,279
Anything Can Happen
MongoDB, is scheduled to report earnings on Monday, before or after the close (depending on source).
At this link, the P/E is reported as negative 402.
What could go wrong?
When looking at the chart, MDB has rebounded from support, in a ‘spring’ condition.
MongoDB, MDB, Weekly
As noted, the past three earnings releases (blue arrows) have resulted in a sharp move higher.
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The Danger Point®, trade mark: No. 6,505,279
A Familiar Scene
AIG, did not reverse as anticipated, link here.
Short position, AIG-26-01, was closed out with a tiny loss.
There are fundamentals a-plenty, link here, to surmise that AIG’s on borrowed time (not advice, not a recommendation).
From the chart, it’s been five successive weekly highs, and higher lows.
With the knowledge a reversal can happen at any time, looking at the chart with its ‘spring’ condition, what’s the next (most likely) target?
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The Danger Point®, trade mark: No. 6,505,279
Is This It?
Is the A.I. story, over?
As Ox Talks says here, the never-ending, upward move on any kind of news, may finally be at an end (not advice, not a recommendation).
Looking at the chart, we see after all-time highs, price action drifted sideways for months.
The deep retrace before the false breakout, gave a clue that supply was building.
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The Danger Point®, trade mark: No. 6,505,279
Weak Retrace
Yesterday, Texas Instruments broke decisively lower.
Today, it’s attempting to retrace and test that break.
At this juncture, a weak 23.6%, is all TXN can produce (not advice, not a recommendation).
Let’s not forget, NVDA posts earnings today, after the bell.
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The Danger Point®, trade mark: No. 6,505,279
What Happens Next
Back on January 6th, we had this from ‘Ox Talks’.
The question is:
Has AIG effectively filled the gap?
According to the link above, management has tossed out (or about to), the CEO that nursed the company back to profitability (not advice, not a recommendation).
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The Danger Point®, trade mark: No. 6,505,279
One Side, is Exhausted
Today was the day when the airline sector was supposed to resume its uptrend into a (possible) new high.
Early in the session, that move has failed (not advice, not a recommendation).
Instead of moving higher, price action printed a new daily low.
As Dr. Elder said years ago in ‘Come Into My Trading Room‘, when a set-up fails, at times, it’s best to exit (if positioned) and re-enter in the opposite direction.
Airlines Sector, Daily
Last Friday’s action was a reversal bar with a higher close. The inference was for continuation to the upside.
As the arrow notes, that move has failed.
The benefit, is a well-defined stop (if short); that is, today’s session high (not advice, not a recommendation).
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The Danger Point®, trade mark: No. 6,505,279
Aligned with, The Delta Analysis
When looking at the airline sector below, it appears to support yesterday’s update.
That is, we have signs of potential buoyancy, enabling the sector and DAL to move higher (not advice, not a recommendation).
Of course, with that said, anything can happen in the markets.
Airline Sector, Daily Close
The circled area shows a wedge within a much larger (terminating) wedge.
If this pattern is in-effect, i.e., the market moves higher to the measured move, then we have one (possible) last high in the sector (not advice, not a recommendation).
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The Danger Point®, trade mark: No. 6,505,279
Possible, More Upside
Delta’s showing high page count in this site’s metrics.
Here’s an update.
We did get the downside move as suggested here.
However, DAL did not collapse as expected.
Instead, it looks like there’s some buoyancy, which implies more upside (not advice, not a recommendation).
Note the pivots (so far) occurring on Fibonacci counts.
Monday is ‘Day 8’.
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The Danger Point®, trade mark: No. 6,505,279
OMC, Earnings
Omnicom, announced earnings on Wednesday, link here.
Market response was to launch from a spring set-up, straight into an up-thrust.
From lower blue line support, into upper blue line, resistance.
Note the increase in volume while range narrows.
Price action’s laboring higher, at resistance, as volume increases significantly (not advice, not a recommendation).
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The Danger Point®, trade mark: No. 6,505,279
The Danger Point® 