Jack Steiman's stock picks, trade alerts, and technical analysis for swing traders!
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SwingTradeOnline is dedicated to providing institutional-quality technical analysis of stocks and indices for traders with a several day to several week time horizon. SwingTradeOnline's flagship subscription service features technical analyst Jack Steiman and his intraday journal of technical market analysis, stock picks, and trading alerts for swing traders.

Jack Steiman is a former columnist for TheStreet.com who is renowned for calling major shifts in the market. President of New York-based Visionary Research Group, Jack consults to individuals and companies on stock market analysis and education. He honed his skills as a trading educator in front of live seminar audiences in his role as chief financial strategist for InvestEd Central, and also previously hosted two daily programs, "Market Close Live with Jack Steiman" and "InvestEd Central with Jack Steiman," on Business Talk National Radio.

Jack is renowned for calling major shifts in the market, including the bottom of the bear market in mid-2002, the market top in October 2007, the late 2008's market crash (when he was 100% in cash), and the market bottom in March 2009. On Friday March 6, 2009, he told subscribers: "I want all of you to understand why I won't short here. Take these numbers in and let them resonate in your head. Weekly charts have stochastics at about 6 with RSI near 25. Monthly charts have stochastics averaging 4 with RSI on the Dow and SP at 16. And for weeks. Absolutely unshortable. When this market catches a bid it'll explode higher fast. The circumstances for risk/reward are poor for shorting because of how fast you'll get annihilated. Simple as that."

Just one session after that comment, on Monday March 9, the market bottomed, with the Dow shooting up 380 points the following day to begin the spectacular six-month rally. Jack went on to have a run of 30+ consecutive winning trades!

See Jack's February 22, 2011 presentation of his strategy at the New York Traders Expo.

Jack's strategy is based on technical analysis. He seeks to analyze the likelihood of a stock breaking out of -- or down from -- a wedge pattern. One particular tool is MACD, a measurement of buying/selling intensity. Jack's strategy is to look for divergences from price -- with low selling intensity a positive divergence (bullish) on a downmove and high selling intensity a negative divergence (bearish) on an upmove.

Of his 2007 call, Jack says, "We started telling people in September (2007) that the sell signal was in, and that the divergences had become negative on all the time frames," Jack explains "On top of that the oscillators had become stretched top side, meaning very severely overbought, and when you combine overbought with negative divergences, that's a major sell signal. It took a while, lots of back and forth, which is what keeps people bullish, the way it keeps people bearish here at the bottom with the back and forth -- but eventually markets make their move. The one thing I've learned to do, and everyone needs to learn to do, is trust the divergence when you see it. We liquidated our longs, put on shorts, and sure enough the markets started cratering down."

Of his mid-2002 market call, he explains: "This was one of the strongest, largest positive divergences in the market that you will just about ever see in your life. But what makes it tough to play is the fact that the news was so bad that no one really trusted it. Of course, that's how bottoms are made. So the volume off that bottom was very light because no one believed in it, and because the volume was light everyone thought it would just crash back down. Of course, it never did. I went on the radio and said, "Look folks I know we're in a bear market, but you have to understand that we have huge positive divergences at the bottom -- lower prices, higher MACD, which means the selling pressure is letting go. And when you have those positive divergences you need to trust it."

See examples of Jack's recently published market alerts, and view for yourself his history of successful market timing. To see what Jack's currently trading, sign up today for a Free 21-Day Trial!

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Meet the Analyst

Jack Steiman Former columnist for TheStreet.com, Jack Steiman is renowned for calling major shifts in the market, including the market top in October 2007. More ...
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