Look for things to heat up over the next couple of days
Sify Limited
(
SIFY |
Quote |
Chart |
News |
PowerRating) was pointed out
in
my last article to watch for the daily breakout on the mini pup pattern
(mini pups are when the lead %d stochastics stalls on the rise as the laggard %dslow
stochastics continues to rise to form a wedge like breakout). Our traders were
alerted to buy long at $8.15-8.20 on Friday, 12/8/09. The daily mini pup pattern
played out as heavy volume squeezed the stock up continuously holding the 60
minute 5 period moving average trend through $10.15 for a beautiful 25% gain in
two days.
Even more notable is that the market in general
has been FLAT to bearish in those two days. This is once again a testament to
the POWER of a daily mini pup breakout pattern. Our members pared most gains
above $10. Trail stops will be just under the $9.40 on the rest until the daily
5 period moving average bases higher. SIFY needs some rest and has to base above
$10.75 for the next leg up to the $12.50 levels.
The noodles (Nasdaq 100 eminis MARCH contracts)
are still FLAT consolidation with daily 5 and 15 period moving averages at 1713
x 1713. Once the FOMC rate decision speed bump is out of the way, the market
will then set up a make or break situation. Nothing new to report on the general
market direction here. All we can do is wait and react.
Look for any trend attempts to come a day or two
AFTER the FOMC announcement. Good trading all!
Feel free to send any questions or comments to
jay@undergroundtrader.com
Jea Yu
Jea Yu has been involved with
the equities markets for over 10-years. He specializes with intraday trading in
the U.S. equities and futures markets. To receive a free 7 day trial to Jea
Yu’s Underground Trading Pit,
click here or call 888.484.8220, ext. 1.