According to Yahoo! Finance, this morning stocks "surged" on M&A news but see-sawed soon after.

Let us check out how the Orthochronos charts explain the events. Here's the intraday chart of NASDAQ Composite Index this morning at 10am. We can see that the fast oscillators have captured almost all of the momentum of the "surge".

Within one hour, i.e by 11am as shown in the chart below, we can see that the momentum has been completely neutralized by the fast oscillators themselves and the Pink and Black oscillators are following their original paths.

Now let us look at the End-of-Day charts from Friday. The chart is a classic example of conflict. The top right panel has been zoomed in to show the fast oscillators better. With these oscillators poised this way, the "flat" nature of the market today, despite the morning surge is no surprise.

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Yahoo! Finance reports that the barrage of bad news upset the market leading to the close to 2% slide in the NASDAQ Composite Index. Let us check what the Orthochronos charts had foretold.
First, check the final intraday chart as of close of yesterday (8/18). The indications are very clear.

Now let us check how the situation is in the End-of-Day charts which use only the daily closing price/index data.

From the two charts above, it is clear that the downside was to be expected. Given these charts and the situation of the market today, it will be interesting to predict how Friday will shape up.

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On a day that Dow has sunk over 200 points and NASDAQ composite down close to 3% (Yahoo! Finance report), let us examine a profitable short sell alert.

At the end of its meeting today, the Federal Reserve announced steps to bolster the economy as the reports say. 

Today (8/3) is being described by Yahoo! Finance as a day when markets are "kept in check" by "mixed earnings and uninspiring data"!
Let us take a look at the charts of NASDAQ Composite at 2:35pm to get the technical analysis view.

We can see that the upward crossing point of the Pink and Black (top left panel) was neutralized by the downward crossing point of Intraday Model (brown) and Daily model (gold) in the bottom left panel. Also notice the downward movement of the slower Blue oscillator in the bottom right panel.

Indicated on this panel are two points of seemingly "sluggish" behavior from the Blue oscillator.
Our 4-panel system with the different oscillators have been created to provide fast & easy visual analysis of the situation. We've already discussed the on-screen summation of different components to form the Red (=Black + Blue) and Pink (=Green+Violet) oscillators.
Actually some of these components themselves have hidden components. These hidden components have very similar periods and amplitudes so they are displayed only through their sum instead of crowding up the display. But sometimes the phase difference between these components create the interesting "sluggish" behavior. This aspect of sine wave summation is illustrated in the figure below where the Red is the sum of Black and Green sine waves.

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Honoring the continuing earnings season, lets examine the charts of two stocks that reported in the last two days.
Silicon Image Inc (SIMG) reported after close on Tuesday and Arcelor Mittal (MT), world's largest steel maker, reported at open on Wednesday.
Post the report, SIMG soared over 25% while MT stock was down.
Financial news analysis is an interesting business. It is always entertaining to watch reports trying to find "causes" for stock movement after the fact. Thus routinely we have stocks that slump "despite" good news OR the markets "ignoring" bad news and letting price rise :-)
In the case of SIMG, the reports could breathe easy because the company jumped to profit and that "caused" the stock to soar. MT also reported profits but the outlook regarding China wasn't good news. That "caused" the stock movement downward!
Keeping that fundamental analysis in mind, let us look at the Orthochronos charts for these tickers.

Examine the End-of-Day chart for MT from 7/27 below. The oscillators are poised for a downward move.

Additionally, in the above chart, we see the conflicting directions of dominant Black and Pink oscillators leading to the price moving in a tight range recently.

Now look at the contrasting situation of the oscillators for SIMG end-of-day charts below.

Our technical indicators don't look for "causes" and "effects", they just continue their consistent motion.

It shouldn't be much of a surprise that market sentiments can be effectively modeled considering that even marital sentiments has come under mathematical scrutiny :-)
http://ittakes30.wordpress.com/2010/07/27/the-mathematics-of-marriage-or-less-happily-ever-after/

Have a great day!

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Comtech Telecommunications (CMTL) was down more than 30% yesterday (7/21).
The stock was hit hard by this bad news: http://blogs.barrons.com/techtraderdaily/2010/07/21/comtech-shrs-crumble-after-it-fails-to-win-army-contract/

Our system had a short alert issued on CMTL towards the end of day on 7/20 as can be seen from the chart below. The alert was issued as the dominant Black oscillator turned. There were all indications that the stock would have a downturn. But as you can see from the digits of the alert number, our automated strategy had an average profit of 2.3% over 3 trading days! The 30% was a nice gift for those who took that alert!
Chance meeting of fundamentals and technicals leading to profit.
We're definitely better off with the disciplined approach for reliable, repeatable profits from the oscillators and alerts than such windfalls.

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Before getting to the earnings related chart study of Apple (AAPL), take a look at the end-of-day chart from yesterday (7/20) for NASDAQ Composite below. The downward crossing point of the dominant Pink and Black is clearly seen. The fast oscillators however have some upside, but that is clearly not going to receive any support from the slower oscillators. So today, as expected, we had a nice pop up at open followed by a slide. Remember that price is the sum of all the oscillators and indicators. Thus more in agreement they are, lower the risk of the trade and greater the price change. Our counter intuitive "low risk, high reward" system!
 

AAPL Earnings

AAPL announced earnings after close yesterday (7/19). Whenever such a fundamental company event happens, it is not safe to depend completely on technical indicators. That is why we suggest staying away from particular stocks during the couple of days around their announcements, so that the oscillators get a chance to settle back into rhythm after possible upheaval in price. Nevertheless it is educational to look at the charts around earnings time.
Check out the end-of-day chart of AAPL yesterday at close before the announcement. The dominant oscillators are turning upwards and the fast oscillators have very low magnitude comparatively.

After the earnings announcement yesterday, it was clear that the stock would pop this morning. The upward jolt in the price is captured by the fastest intraday oscillators in the intraday chart below from the open today (7/21).

We can see that some of the momentum in the price has also transferred to the Pink and Black oscillators. However, the oscillators have settled down by 10:30 as the chart below shows.

And by the afternoon, it is clear that the impact of the earnings was captured by the fast oscillators and distributed somewhat to the Pink and Black oscillators, but soon enough all of them were steadily moving along their consistent paths! The chart below is from 3:30pm as indicated.

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