Jump to: Long Setups
Notes for the Day
- Prices have rebounded to the point where continuation of the rally is possible.
- The flip side of this is if markets are unwilling to support prices, we’ll need to switch gears quickly and assume the current trend is now flipping from up to down.
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.
Reminder: A number of trade setups from yesterday’s list remain valid (MSFT for example) – be sure to review.
Test of Bottom – Reversal
Retracement or Pause in Up Swing / Up Trend
NEM
Test of Top – Continuation
ABX – long holders also need to consider taking some profit off the table if yesterday’s low is reconfirmed with another low today. Check FCX chart (downgraded yesterday) for an example of how quick price can turn.
DIA
SPY
SMH – semiconductor ETF
KLAC – deep in congestion but leaves a bull flag to position above.
Other
QQQQ – tech may see some additional support today, pre-market NQ is trading stronger than. Following a break of the trendline there may finally be enough fuel to push prices up and out of this range.
Short
IBM still looks tenuous, stealth bear flag above a test of bottom. The declining wedge is however a potentially bullish scenario lurking here.
Additional short setups will be published after the open.
05.03.11 09:26 #