It is essential that traders monitor leading indicators, economic measures, and general development in politics. The first two are very well-covered by stockcharts.com.
In the most recent newsletter (August 2), the following key important points may be summarized:
- Monthly reversal in oil suggests a downside target for oil at $70 (crude oil breaks is in danger of breaking the head & shoulders pattern to the downside)
- S&P 500 rally was not convincing: trading volume was not convincing
- Nasdaq has failed several times to break resistance
- A play for the consumer discretionary sector may be emerging
Interestingly enough, SBUX was featured as a trading play.
"At Invested Central, we trade stocks, we don't invest for the long-term. However, the technical picture of Starbucks (SBUX) is quite compelling for a longer-term investor. The name brand is obvious and on the heels of a horrible quarter, you can pick it up on the cheap."
Chart Source: http://stockcharts.com/commentary/archives/20080802/