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Bill L.
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Methodology: setups require certain criteria to be met before trades can be executed, which include weighted statistical studies on several indicators of price, breadth, volume, and sentiment . Amount of risk taken is proportional to how many indicators are aligned. I mainly trade market... More
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  • Tuesday, May 22, 2012 - Short Term Update - Building A Long Position 1 comment
    May 22, 2012 9:41 AM | about stocks: SPY, SPXL, TLT

    A short message:

    Update:

    Based on how oversold the market is, I'm looking for a pretty decent and tradable bottom at these levels. The SPX has broken out above the top bands, indicating a possible reversal. So the trade setup is pretty simple, I'm buying at here and setting my stop at yesterday's lows.

    SPX - 60 min

    (click to enlarge)

    We have some possible confirmation in the TLT; the TLT looks like it is possible breaking down out of a triangle. So we have risk starting to rise, and safety starting to top out, just the combination we want to see when taking a long position.

    TLT - 60 min

    (click to enlarge)

    Based on how oversold the indicators are, this rally should last several days at least, and yesterday's lows should remain intact.

    -Bill L.

    Disclosure: I am long BGU.

    Stocks: SPY, SPXL, TLT
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    I'm currently flat after being stopped out this morning as we broke below the 5/18 lows. I'm still leaning towards the bullish side, but I always honor stops, I don't hope and hold. Looking for the next setup...
    1 Jun 2012, 11:17 AM Reply Like
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