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Jeff Pierce
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I’m a swing trader of momentum stocks with a holding period of anywhere from a few hours to a few months. I run a number of screens to locate the strongest/weakest stocks out there, using technical analysis to determine my entries and exits. Trying to calculate the intrinsic value of stocks in... More
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  • Markets Are At Key Resistance Zones 5 comments
    Jun 18, 2012 3:50 AM | about stocks: DIA, SPY, QQQ, TLT, UUP

    By All About Trends

    Hang on to your hats folks it COULD be a news driven bumpy ride next week. Doesn't mean it will just that it could.

    • We have the Greece elections
    • We have the Supreme court apparently making the call on "Obamacare"
    • We have the Fed
    • And who knows what else.

    We nor anyone else knows how this whole twisted Greece thing is going to work out, one can jawbone all they want but the markets make the call. It's not going to be the news but the reaction to the news.

    (click to enlarge)

    BUT does it really matter? Technically speaking it doesn't as we are sitting at some resistance zones (with a high cash position and a little short exposure) that should the markets want to honor those zones then we've ran our course or near ran our course.

    micro charts below
    (click to enlarge)

    Big upward move in a short period of time if you ask us. Here we are though overbought, on Negative RS divergence and starring at the 61.8 fib level.

    (click to enlarge)

    As you can see, Thursday on news of the Central Banks of the world uniting we broke thru the right shoulder of the mini head and shoulders bottom (which was also downtrend channel resistance) all in "Don't blink" form and a gap open. Now? We're overbought, tagging a fib level etc etc etc. Sure we can go higher from here and if so? You got it all in a gap up open but then what? We'll refer to what we said about spikes.

    (click to enlarge)

    So what are we going to do about all that? Simple come Monday IF the markets spike they spike let the dust settle and then decide what to do IF anything. We're more apt to sweat it out while in the zone than anything else. If we gap up and stay up? So be it, upsides are limited to the Brick Walls as shown over time. In that case?

    It reminds us of a Tony Robbins phrase : "God's delays aren't God's denials" Said another way? "The Market's delays aren't the Market's denials"

    So really folks, one would be better off to sit back and watch the fireworks come Monday and above all DO NOT get emotional and freak out if you have any short positions on. Chasing stocks to buy here won't do you any good either, especially with a Fed meeting coming up.

    NOTE: Keep in mind the bulk of this talk is assuming we gap up big. We nor anyone else has a clue as to what is going to occur. We only lean our talk to a gap up open so as to help keep you emotionally centered and grounded. In other words, don't jump to any conclusions at the open. We could just as easily fall like a rock too you know.

    Lastly, if we were to gap higher? We'd lean towards taking a short sell in either an Inverse ETF or IBM (we're leaning towards IBM) so keep that in mind too as spikes in the markets are also opportunities to profit from, think Monday's pop and drop.

    The following has been an excerpt from this weekend's premium update by All About Trends. Members receive daily market commentary and stock picks, a weekend wrap-up, and a concise trading plan. I personally recommend their service for their insightful content, trading methodology, and value. Try it here at a significant discount.

    Related Posts:

    Spain gets TARPED?

    The Mechanics Of Capitulation

    The Only Pattern You'll Need In Downtrends

    All About Trends Special 50% off Offer!

    Stocks: DIA, SPY, QQQ, TLT, UUP
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Comments (5)
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  • Brandon Gibbs
    , contributor
    Comments (239) | Send Message
    Hey Jeff,


    In regards to your market coverage, it is superb. Clear and concise whether video or text. This is a scary time to be short , if charts start getting up above res, people may get excited. In my opinion, res is strong and that's why you watch so carefully. The "individual names" idea you mention is the route I'm taking. Two additional questions if you don't mind.. your take on a floor in crude? and do you follow any emerging markets?
    19 Jun 2012, 01:58 AM Reply Like
  • Jeff Pierce
    , contributor
    Comments (939) | Send Message
    Author’s reply » Brandon,


    Just got this question and I'm heading out the door. Will do a post (tonight/tom at the lastest) on zentrader and link it here for you.


    Thanks for the kind words.


    19 Jun 2012, 02:54 PM Reply Like
  • Jeff Pierce
    , contributor
    Comments (939) | Send Message
    Author’s reply » I used to follow the emerging markets more closely, but not so much these days. Was there a particular market you wanted me to look at?


    Here's my take on crude.
    20 Jun 2012, 12:32 AM Reply Like
  • Brandon Gibbs
    , contributor
    Comments (239) | Send Message
    Vietnam is incredibly interesting to me. VNM chart looks like a tired bounce holding above its 200dma, (which right now means nothing, I'd like to buy around $16) while Gov't assistance admits to being at the ready. L/T position imo
    20 Jun 2012, 02:14 AM Reply Like
  • Jeff Pierce
    , contributor
    Comments (939) | Send Message
    Author’s reply » VNM may be at resistance on the daily. Previous support is now resistance.
    20 Jun 2012, 01:52 PM Reply Like
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