Monday, August 22, 2005
Issue Contents:
| 09:22 | The Day Ahead Economic releases and news |
| 09:25 | Swing Trade Setups |
| 16:15 | TrendVue Trader Talk Today's transcript. |
Good morning, today is Monday August 22nd, the 234th day of 2005, and an extremely quiet day for economic news following last weeks surprise (?) sharp jump up in CPI.
As I’m just back from my first full week off from the market (although I confess to once sneaking a peak at CNBC running on a tiny television in a corner store in the middle of nowhere), it will take most of today to get caught up on market and administration tasks – by tomorrow we should be back to normal operation more or less.
Market Direction
Lets start off the week by looking at the big picture in markets and commodities.
As we can see here, two of three major indexes (S&P 500 and Dow 30 Industrials) are in the process of testing the lows of the ranges which have set up over the past few weeks. All such ranges are potential change of trend zones – a place where the longer term up trend may reverse into a longer term down trend. We can’t know ahead of time how the test may play out, therefore the cardinal rule at such times – especially when the range test is occuring at a relative high rather than a relative low (such as in the spring) – is to exercise caution.
Being cautious does not mean we stop trading on the long side – on the contrary, we want to take advantage of opportunities to get long near the low end of the range as success or failure here is easy to detect. Should the market hold up here for more than another day or so, we may not see prices retrace to this point again.
Just the same, the Dow 30 in particular has been setting up a stealth bear flag over the past few sessions and for this reason we want to be a) stalking opporutnities on the short side and b) ready to take profits on longer term positions, unless price can reclaim territory (and hold) above the high of last Tuesday’s tall down bar.
For this morning, swing trade setups will be published in Trendvue Trader Talk – back to normal schedule tomorrow.
http://www.trendvue.com/latestscan – my first stop will be the section of “outliers” half-way down the list.
Today's transcript.
Click on the title above to expand this document.