Feb 9 2010
February 10, 2010 by admin · Leave a Comment
| Weekly Trend: | __ | Down |
| Daily Trend: | Down | |
| Daily Momentum: | Down |
Yesterdays action was a little concerning as we wanted to see immediate follow through from Fridays reversal. We got the follow through today but it needs to stay the course for a week or two. I sort stocks into bearish and bullish folders based on a predefined scan I use. Interestingly enough many in the bearish folder closed very weak last night even with the background strength. The trends are all down so any counter trend trade is considered aggressive so don’t get too carried away with upside follow through. We continue to look at this coming bounce as a selling opportunity.
Feb 5 2010
February 8, 2010 by admin · Leave a Comment
| Weekly Trend: | __ | Down |
| Daily Trend: | Down | |
| Daily Momentum: | Down |
There is a lot of action within the setups today mainly due to the need to vigorously defend shorts after last nights strong reversal into the close and the creation of lots of Type-A Bullish Divergences. The market rallied close to 170-pts in the final hour on news that the ECB may have found a solution to their debt issues. We will also add a number of new bullish trades, some reversal and some continuation, with a view to profiting from an expected bounce in the coming week. Again I reiterate that is these times we’ll not be using a trail stop, but honouring profit targets as listed.
Feb 4 2010
February 5, 2010 by admin · Leave a Comment
| Weekly Trend: | __ | Down |
| Daily Trend: | Down | |
| Daily Momentum: | Down |
The market fell in a significant hole last night and several commentators are saying this is the ‘big one’ down. Maybe. We’re short and happy to be that way. I have updated current positions and added a few extra’s in for good measure. I’ll scan charts again this afternoon and may post some further setups later in the day. Ensure you check back later this evening if you’re looking for some extra trades.
Feb 3 2010
February 4, 2010 by admin · Leave a Comment
| Weekly Trend: | __ | Flat |
| Daily Trend: | Down | |
| Daily Momentum: | Down |
The market has lost its momentum completely. We’re in no-mans land. Earnings are still being released and tomorrow has the all-important Employment data release which will be heavily watched and voted on by the market. The market could swing strongly one way or other. If it swing up be watchful of a short squeeze and any signs of exhaustion. The daily trend is down but its not firmly entrenched. I would not be getting overly committed until after the employment data and some indication of the trend.
Feb 2 2010
February 3, 2010 by admin · Leave a Comment
| Weekly Trend: | __ | Flat |
| Daily Trend: | Down | |
| Daily Momentum: | Down |
The most important thing to understand here is that the market is currently in no-man’s land. Another strong session but this is too be expected with bulls thinking a new rise is underway. It may well be, but the short term trend in our view remains down so we take this strength with skepticism. The long term trend is mixed. If volume wanes in the coming week or we make a very clear 3-wave counter trend move we will be looking more aggressively at short trades for another leg lower. As mentioned several days ago, by all metrics the market is well oversold so a bounce here is simply unwinding that situation.
Feb 1 2010
February 2, 2010 by admin · Leave a Comment
| Weekly Trend: | __ | Down |
| Daily Trend: | Down | |
| Daily Momentum: | Down |
On intra day time frames the US indices have completed 5-waves down off their respective highs. Last nights broad based strength suggests a counter trend bounce has now commenced and should last a week or two. The bulls will be quick to jump back on so be very careful of short covering rallies and also don’t get too carried away with new long trades. Use profit targets and don’t get carried away with expecting a sustained move higher.
Jan 27 2010
January 28, 2010 by admin · 2 Comments
| Weekly Trend: | __ | Down |
| Daily Trend: | Down | |
| Daily Momentum: | Down |
Price is currently in no-mans land. The downtrend is not firmly established yet and we feel the best action is to await a low volume bounce from which to find shorting opportunities. There are a few stocks worthy of brief bounces that could offer trades to the longside but these would be aggressive entries. Many of these kinds of entries align with Type-A bullish divergences. As usual we suggest trading with the major trend is the better option, however, if you’d like to see some of these counter trend trades please let me know via email.
Jan 26 2010
January 27, 2010 by admin · Leave a Comment
| Weekly Trend: | __ | Down |
| Daily Trend: | Down | |
| Daily Momentum: | Down |
The market tried to trade higher but was dragged down into the close. Very weak price action and further confirmation that the trend has turned south. We will only be looking at short positions until this trend position changes again. We will be focusing on certain patterns that will start to appear in the coming week, namely Head & Shoulders top and A-B-C corrections that make ‘lower swing high’ patterns. Obviously we’ll also be watching out for breaks through major lines of support.
Jan 22 2010
January 23, 2010 by admin · Leave a Comment
| Weekly Trend: | __ | Up |
| Daily Trend: | Down | |
| Daily Momentum: | Down |
Downside follow through on heavy volume suggests that we’ve got a lot further to travel. With the daily trend now down we should only be looking at short positions over the coming weeks. We’ll be scouring the charts for opportunities in the next few days and bringing them to you. There is no reason to be trading longside from here.
Jan 20 2010
January 21, 2010 by admin · Leave a Comment
| Weekly Trend: | __ | Up |
| Daily Trend: | Up | |
| Daily Momentum: | Flat |
The news out of China coupled with earnings season saw the market give back all of yesterdays gains and some. At one stage the market was -200 but clawed back a little into the close. We’ll be taking a closer look at some of the indices tonight within our normal reviews, but suffice to say support levels remain in place as do shorter and longer term trends. I get the feeling that 2010 is going to follow the patterns of late 2009 – that is chopping higher without much conviction. This makes shorter term swing trading particularly difficult and frustrating. If this is to be the case we’d be better off adopting profit targets rather than using trailing stops and being quick to move in and out of stocks.