Here’s How Technical The Market Is Trading Currently
Another roller coaster ride offered trades for all approaches. HVT
was decent (although the last few days were better), and intraday position
trades worked well with the strong upward trend. Subscribers to my service were
treated to longs in
(
EBAY |
Quote |
Chart |
News |
PowerRating),
(
ROOM |
Quote |
Chart |
News |
PowerRating) and
(
BSC |
Quote |
Chart |
News |
PowerRating),
and then in the last hour, a 1,2,3 on the five-minute S&Ps capped off another
good trading day.
There is little doubt, as evidenced by the charts, just how technical the
market is trading presently. Each Fib level or moving average garners some
respect. Referring to the 1,2,3 short setup shown on the chart below, I found it
reasonable to let out of a portion of the trade once the S&Ps got to 873, the
60-period EMA. While that certainly was not the end of the move, the price
action did stall there. It was reasonable to cover half there.Â
As mentioned above, HVT on the opening yesterday was rather absent. The
charts below of both the S&Ps and the stock I was focused on trading,
(
AIG |
Quote |
Chart |
News |
PowerRating), were directionless and choppy. Not a
good combination for HVT.Â
Despite AIG setting up twice on the chart
above for a valid short sale (Point
X), the S&Ps never confirmed the move
lower. Sure, it is frustrating to see the stock move without the S&Ps, but this
is the exception, not the norm.
The one observation I had made was that AIG
was noticeably weaker in the opening relative to the S&Ps. Naturally, when the
S&Ps were on the verge of breaking the lows of the day, it seemed reasonable to
me to get short AIG. While the trade started
off OK, it was one of those trades that just did not go according to plan.
When the S&Ps once again failed to break below the opening lows, it normally
would mean that the AIG trade would simply
just result in a minor loss. In this case, perhaps since it was so oversold
relative to the market, it hit an air pocket to the upside. Not much you can do,
those are the breaks sometimes. It was a reasonable setup, no regrets.
As mentioned earlier, the trending nature of yesterday’s market, (after the
morning session) lent itself well to some great long entry trades. The charts
below summarize some powerful moves that were mentioned Monday night.
Support/Resistance Numbers for S&P and Nasdaq Futures |
||||||||||||||||||||
|
* Indicates a level that is more significant
Don’t forget, my new book, “How
I’ve Achieved Triple-Digit Returns Day trading…4 Hours A Day” is now
available. Order today and you will receive a 10% discount.
Save 10% on my trading service when you sign up for 3, 6
or a 12 month subscription. Click here for details.
As always, feel free to send me your comments and questions. Tear ’em up
today, I suspect it is going to be a good trading day.
PS: Buy my book, and get a
FREE 2 Week Trial to my Day trading Service.
Click here for more details.