Friday was a classic “minor pause” in an upswing which we took full advantage of. Even before the open we were ready:
Sometimes the first pause is merely a single day, so today we’ll first want to be ready on the long side just in case buyers are willing to step up right away.
And then:
09:30:22 Mike: On the short side there many triggered yesterday but I think for the first hour here we have to give some credit to the potential the market may try to push directly up.
09:33:37 Mike: 1191 buy stop limit ES
09:33:48 Mike: 1513.50 NQ
09:41:38 Mike: 10594 BUY STOP LIMIT YM
09:51:23 Mike: B/E [break even stop] on YM
09:54:37 Mike: Ok I am done for the day ;)
09:54:42 Mike: I hope.
09:55:10 Mike: DIA long swing triggered on daily; lets look at the others…
And the result – Dow / YM hit every one of our targets and in the end exceeded expectations.
Lets quickly review all of the trade setups featured on Friday (all longs, no shorts – which long time readers know is unusual for us):
XLB Basic Industries – after a minor retracement on Thursday pushes directly. Running close to 2005 highs now.
IWM – Russell 2000 ETF
QQQQ. As noted in the transcript I tend to favour both QQQQ and IWM when a major market move is possible since they tend to outperform (in both directions up and down) the S&P 500 or Dow 30.
SPY – S&P 500 ETF easily clears the prior major swing high from back in mid-January and pushes directly higher above Thursday.
DOW (the stock, not the index), a basic industry, passes (so far) a test of top.
GE, the only laggard in the bunch, remains in play however protective stops should now be moved to Friday’s low with a goal of moving to break even shortly. I would recommend moving to a break even stop soon, and certainly once/IF price clears Friday’s high at 36.33.
05.02.07 11:06 #