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We focus on trading strategies that have historically given traders a significant edge when it comes to investing in the stock market. We have worked under and have been trained by some of the top investors of the past 25 years including WILLIAM O’NEIL(bestselling author and founder of... More
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  • Was Mondays Rally Any Good?-Stock Setups for Tuesday Feb 2  0 comments
    Feb 2, 2010 3:11 AM | about stocks: INT, CREE, VIV, KB, IAG, GG, RAX, COV, JAS, CTCM, HRBN, WRC, TECD, MSTR, CAAS, NEU

    Stock Setups for Tuesday Feb 2

    We got a nice bounce higher today but that is not all you should be looking at. Here are the real important things you should be looking at to understand the quality of today's movement higher.

    Here are the positives:

    #1 For starters we did get a nice percent move. Over 1% on all the major indices.

    #2 The Nasdaq trended higher all day

    #3 The Nasdaq closed at its highs for the day

    Here are the negatives:

    #1 the Move higher was on lighter and below average volume.

    #2 Today's movement did not even reach the top of Friday's trading range which is negative

    #3 Today's movement paused right below the 100 day moving average.

    #4 Today's move couldn't get back even 1/2 of Friday's move lower.

    #5 Many of the leading stocks above average moves were on good volume (Positive) but many of those charts look terrible and could in many cases be written off as short term short covering.

    CURRENT TREND

    5 MINUTE CHART- Short Term Trend

    DAILY TREND

    WEEKLY TREND

    So what we have here is an uptrend for the short term but looking at the intermediate and longer term charts shows us that the market is breaking down and topping. This is not a done deal here but this short term light volume bounce could lead to heavy selling at resistance levels.

    Once again you need to remain very disciplined and get the market trend on your side each and every day you decide to participate in this market. If the short term trend is working then make sure you trade only for the short term.  If the longer term trend improves then you could look to become more aggressive and give your trade some more wiggle room on your stops.

    As of now we are trading only in the short term time frame and only if we choose to be very aggressive. We understand that if any of these trades trigger and reverse then we would look to close them out with only around a 2%-4% loss and nothing more in this market.  Our strategy for taking profits over the short term is to take profits on at least 1/2 position on any quick move we get and move our stops to breakeven. Since we are still in a weak market we would probably look to book profits on the entire position when they occur.

    We would attempt to make some quick trades if the following stocks trade above the following prices.

    INT 24.44

    CREE 59.10

    VIV 29.49

    KB 44.94

    IAG 14.00

    GG 35.71 Would look for a only a quick move back to the 200 day MA and would close near resistance level

     

    RAX 19.06

    GIVN 15.25

    JAS 36.56

    CTCM 13.94

    HRBN 17.46

    WRC 39.61

    TECD 41.61

    MSTR 95.10

    CAAS 16.76

    NEU 90.05

    Thanks

    Better Stock Entries

    Disclaimer:

     

    www.betterstockentries.com ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.

     

    It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.

     

    HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

     

    www.betterstockentries.com



    Disclosure: No Positions
    Stocks: INT, CREE, VIV, KB, IAG, GG, RAX, COV, JAS, CTCM, HRBN, WRC, TECD, MSTR, CAAS, NEU
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