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3:57 PM

RINO Closing on strong volume. I’m holding overnight.

3:08 PM

The market has struggled since the consumer confidence release today at 10 AM. The $CPCI has dropped to 1.30, below the 1.55 that Yong Pan gauges next day optimism. Tomorrow we will have second quarter GDP revisions and the Purchasing managers (PMI) index. These two releases will set the tone of the market for the day.

I’m right at breakeven on my buy today, RINO. I may not hold overnight, since my intention was to have this as a day trade. it may have made it to my target had it been the bull day I anticipated.

Not taking on any more positions until tomorrow or after, and I can get a better gauge on direction.

10:56 AM

It’s possible we’ve hit a high for the day. Watching to see what happens to the market around 11:30AM to 1:30 PM. Notice large red candle on the DOW as the Consumer Confidence numbers were released:

9:38 AM

Created closing order for RINO @ 21.47 (+8.2%) Resistance -.01.

9:30 AM

Bought RINO @ 19.83

9:25 AM

Futures have moved positive on better than expected early morning retail and housing reports. Consumer Confidence at 10 AM should tell us whether we’ll continue uptrend.

9:04 AM

ICSC Goldman Store and Redbook both indicated improving store sales early this AM. Futures still fluctuating, apparently awaiting Case -Shiller housing and consumer confidence later this AM.

6:00 AM

I ready for the day. My market scans are strongly bullish for today and are reinforced by Yong Pan’s $CPCI reading of 2.11, well over his 1.55 benchmark that forecasts a “Green day” that follows.

McClellan turned up off the -.5 line as I expected, and we are strongly in the upper channel of our rising wedge pattern on the Oscillator. It’s Bull until otherwise proven.

Today I have some good prospects to post from my scans from last night. My posture is to play these as very short-term day or swing trades, and to move quickly in and out of these positions should I see market momentum begin to turn.

I am not a stock shorter, never have been, tried, but never successful. This is not a market to short anyway. When market gets giddy, I purposely stay away from Twitter and message boards so that I can keep my head clear. It’s too easy to get roped into “hype” buying. That’s heard mentality and it’s never produced good winners for me.

The key is to set up an entry and exit strategy that works for yourself and to religiously follow your rules. This means that you may be sitting on the sideline when you are itching to jump in, and vice versa. But it’s critical to let your strategies “set up” and come to you. And you need to have patience. Last week I lost my patience on several high and tight patterns and sold out too early when I got nervous on the down days. I now regret that, because I see that they held up pretty well, as they always seem to do.

Futures are very slightly down in the US and Europe as I write, and the Asia/Africa markets closed mixed today. I’ll post some charts very shortly.

I’m watching closely the consumer discretionary (XLY) and energy (XLE) sectors today, as both registered a morning star (78% reversal) last night.

RINO

This is a high and tight flag play. My intention would be to try it as a day trade or overnight swing trade. Entry at pivot +.01 = 19.87. Stop at support – .01 = 18.79. Day target is Resistance R1 – .01 = 21.47. Day trade potential is 8.05%. I am going to put in a limit buy order at 19.87 and forget about it.

CLI

This is a morning star, 78 % probability of reversal. I like the repetitive reversal patterns on this chart. If looking for a reversal play, I’d try to buy at pivot and ride it up to around 36 (+9.7%) for a swing trade. This company has an ex-dividend date of 10/1, and the yield is close to 6%. So if you got into this, you would essentially be buying a dividend. I would hesitate to buy this as a long play because it has broken the bottom longer term upward trend line, which would serve as resistance.

Here’s a longer term play I’m going to monitor. WEC is a utility which is heavily getting into biomass energy and wind. It is showing a descending triangle. A descending traingle breakout to the upside can be very rewarding. I’m putting an alert into my trading system to alert me when it closes above 45.82, in breakout territory.