Featured setups from Wednesday December 8 closing data symbol scan
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Notes for the Day
Given a retest of the major index lows is likely this morning, near the open, be very careful on the long side until or unless the test passes. At the same time we need to be just as careful of new shorts. Pass / fail, a nice binary outcome hopefully this morning.
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
EMC – so far a simple pull back in a strong trend, although ADX is getting stretched so caution / consider taking quick profits.
Test of Top – Continuation
CSCO -narrow pull back near range top – given markets are testing the week’s low here, a number of these test of top or test of top of range patterns could fail easily here as well or pass if the market as a whole passes, therefore these are both long and short candidates. Long just above yesterday’s high; short the two day low.
SUNW – deeper more complex pull back but given there was a nice bullish reversal the other day, perhaps an easier long.
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
AIRT – this is a 3 inside up long setup, but it has such a weak chart, I think stalking it as a short for today and the next few days makes more sense.
Special Situations
ETFs
DIA – either way.
SPY – either way, rising wedge.
IWM – technically a 3 inside up scenario, but if the two day low fails, we can expect a deeper retracement. Note how stretched ADX is.
Others
C – banking – long or short, however if the short trade triggers at the base of the two-day low, the first major target is the base of the rising wedge.
04.12.09 09:24 #