News today that the US debt issue looks to be finally settled certainly ignited the market. US futures have been up around 1.5% in night trading although they have eased slightly at the time of writing. Our market has reacted solidly, putting on 1.7% as the XJO closed 73.2 points higher. Solid gains were experienced across the board and all sectors except Gold and Property Trusts enjoyed gains of more than 1%. We have found a few setups for the Discretionary Portfolio, mostly longs but traders need to remain cautious. The market is still stuck between close support and resistance and lacking direction – one strong day doesn’t make a new trend. Our daily trend indicator is still down so long trades for aggressive traders only and consider position size carefully. Better trades are coming from smaller cap stocks.

Similar stock trading tips:

1. Thursday 14th July, 2011
2. Monday 6th June, 2011