TrendVue :: Archive

Friday, July 8, 2005
Issue Contents:

09:09	Swing Trade Setups Featured charts for Friday July 8
16:15	TrendVue Trader Talk Today's transcript.

Swing Trade Setups

Featured setups from Thursday July 7, 2005 closing data symbol scan

Jump to: Long Setups | Special Situations

Notes for the Day

Yesterday’s reversal from terror-driven selling shows market has willing buyers out there and dare we say it, some maturity, or acceptance of the new reality – everyone is at risk. We should not discount the confidence in markets expressed by buyers yesterday, yet old themes – rising oil, the downtrend which has been asserting itself – may come to the fore here again and perversely do more damage than the shock of yesterday’s attack.

While I’m very pleased we stepped in yesterday and bought the market, we must also be ready for continuation along the trend which had been setting up. Unfortunately very few short setups are available on daily stock charts thanks to yesterday’s lower open and the subsequent rally. Strategy – monitor prior short picks that have expressed weakness over the past 2 – 5 days and use them as a base; or, use ETF’s and intraday entry for short exposure if neccessary, for example:

DIA – intraday

DIA – daily, piercing line. Long if it continues; sell short if range low breaks and looks to head lower.

SPY

Long Setups

General common strategy: Unless noted otherwise, buy stop just above the “high” value, with an initial protective stop at the low value of the bar, not below the bar.

Test of Bottom – Reversal

RIM:C / RIMM potential bear flag trigger failure.

Retracement or Pause in Up Swing / Up Trend

TXN; also INTC ought to be stalked although TXN currently has a stronger chart.

WEN, following up from prior days – recent news and a piercing line following gap down offer reversal potential – hold only on strong close.

MFC:C / MFC – insurance

MATERIALS

PD / PD:C

N / N:C

CCO:C / CCJ – uranium, China on a shopping spree in this sector (CCO unlikely to be acquired or allowed to be…) still but the news may already be factored in. Caution.