Today marked a change in character for the market. SPY has now convincingly mounted the 50 day moving average, the volume pattern shows accumulation, RSI is steady above 50 and the price bar is of the "breakout" variety. I'll be looking for a pullback to initiate longs.
As noted in yesterday's Trade Report, I went short GLD @90. My stop is around $93 with an initial target in the $84-86 range. The chart I posted Sunday night details the strategy for this trade. GLD has provided an excellent reversal trade the last 11 times stochastics have hit extreme levels.
Believe it or not, although SPY was down almost 4 percent today, technically it was a good day. The index printed a bullish "long tail" candle on massive volume, while the Worden T2108 indicator at extreme oversold levels. Generally, this ia a clear reversal signal, at least short term. The index recovered right after I... Continue Reading →
It's tough to ignore the strong move in residential construction, aka, homebuilders. While my head tells me to stay away, the charts tell me otherwise. For months I have been using bounces in the sector to reload shorts, but not this time. There is something different about this bounce. Take a look at the chart... Continue Reading →
I'm scared as hell to buy a financial, even with a small position size. However, if I didn't know the name of the company behind this chart (Morgain Stanley), I would be buying. We have price breakout over the 50 day moving average after the stock printed a bottoming long tail on heavy volume a... Continue Reading →
I've been very busy, so I haven't had a chance to update my trades. As stated in the comments section this morning, I unloaded a bunch of shorts and entered a few longs. I would like to add some more shorts on bounce.My bias is still to the down side, but I don't want to... Continue Reading →
MA (Mastercard) has been on my bearish short watchlist every since it broke down below the 50 day moving average on heavy volume. However, the stock's technical pattern made a 180 degree reversal in one day, with today's 28 point gain that easily put it back over the moving average and close to making a... Continue Reading →