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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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Global Chart Analysis
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Better Stock Entries
  • Trading Plan Charts for Monday Feb 22-Trades Hitting New Highs-End of the Rally? 0 comments
    Feb 22, 2010 2:38 AM | about stocks: VRX, VIT, EPB, WBMD, ULTA, HUN, GOOG, ASIA, ATNI, ORN

    Trading Plan for Monday Feb 22

    MARKET DIRECTION

    The market shook off the fed raising of the discount rate and charged higher on Friday. One thing to remember is Friday was options expiration which can cause irregular moves that aren’t real and with volume. Bottom line this action was quite bullish but we are still near nosebleed levels when it comes to what the market does in the short term. Will the overall bullish trend pick up where it left off after this last correction? We don’t know, but what we do know is the market is due for a pullback in the next couple days.

    Reasons why:
    #1 6 up days in a row on the NASDAQ is one simple way to measure this. Historically the market doesn’t go up more than this without a pullback.
    #2 Another more systematic way to measure this is by looking at some RSI readings. The settings we use for the RSI tells us we at a very low probability time for initiating new positions.

    Of course overbought and oversold can get more overbought and more oversold but you have to trade when the odds are in your favor. If you are trying to initiate new positions at this point when odds favor a pullback in the near future then you are trading exactly wrong.


    S&P 500

    NASDAQ

    OPEN POSITIONS


    WBMD new high.

    Watch ULTA. We would look to close if trades any lower

    HUN hitting new highs

    VRX could make another move

    VIT bending lower. Still up over 10% but we would  SELL

    EPB Would close position. Stock is hitting resistance and is running out of steam on this run

    GOOG up but jury is out

    ASIA trade was up as much as 4.4%. Any remaining position was stopped out on Friday at breakeven

    ATNI-Stopped out on ATNI at breakeven. Trade was up as much as 3.4%

    ORN is up but stalling. We would close out position. Still up over 4%

    NEW SETUPS
    Our screens found no high probability setups ready to make extended moves. We only found overbought stocks and broken stocks bouncing into resistance. Both setups can get you burned badly so be patient like us and wait for the next pullback

    Thanks

    Better Stock Entries

    Disclaimer:

    Global Chart Analysis and 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

    603 S. Prospect Ave

    Redondo Beach, CA 90277



    Disclosure: no positions
    Stocks: VRX, VIT, EPB, WBMD, ULTA, HUN, GOOG, ASIA, ATNI, ORN
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