Featured setups from Wednesday March 9, 2005 closing data symbol scan
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Notes for the Day
- Its now or never time – price has to hold these levels and rise, or the entire rally will be called into question. Given INTC preview after the bell and Trade Deficit tomorrow 8:30 am, there is a good chance that today will grind along, although pre-market futures have managed to regain some ground so lets be ready for anything.
- Shorting market – we should let this topping process play out before getting very exposed on the short side. This is my personal plan at any rate, and if I head to net short, a note will be posted on the site as well as discussion in Trader Talk.
Thought for the day: following up on trade setups is very important, provided the basic premise remains valid. I let this one slip through my hands, and that happens from time to time, and I forgive myself because I’m covering many markets all day long.
CK – last highlighted in Friday swing trade setups
Lets keep alert!
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.
Retracement or Pause in Up Swing / Up Trend
JBL – pause, first target is the test of top.
CLS – like JBL, also in the contract mftg space, bull flag forming. FLEX in that space is doing very poorly.
QCOM has so far bottomed and put in a higher swing high and low – pause to buy here.
Test of Top – Continuation
The topping process plays out, and while its still in play we have to be ready for continuation, just in case…
SPY
DIA
QQQQ
Short Setups
General common strategy: Unless noted otherwise, place a sell alert at or just below the low of the setup bar, and look for the first failed intraday bounce after the low has been broken. What we are looking for is price to push down, bounce a little, and fail again – this is where we want to get short.
Test of Bottom – Continuation
IBM – stealth bear flag. We should also keep a close eye on the descending triangle and monitor the upper trendline for opportunity within the next few sessions.
Special Situations
MSFT – long – pause after a big push up. I personally don’t like trading MSFT due to the usual low volatility, but some like to hold the stock and here’s an opportunity.
05.03.10 09:27 #