All About Trends'  Instablog

At All About Trends, our mantra AT ALL TIMES is "REGARDLESS OF WHAT THE MARKET THROWS AT US".

After all that is a trait ALL top traders have in common and that is what ALL of you should be striving for vs. getting sucked up in all the Euro hoopla.

When looking at the daily charts, you can see we are hitting some resistance levels. What we want to do is give things a little time to sort themselves out which means PATIENCE with a capital P before we get too cute in any one side of the market here.

(click to enlarge)

(click to enlarge)

(click to enlarge)

Even if we are ultimately going to work higher over time, we have to work off this recent spike we've seen the last three days which leads us to buy the dips (and cover shorts at the same time). That is IF we are going higher.

The name of that game with that scenario is First Thrust Up, Pullback Off Highs (POH) as the chart of watch list stock BLOX shows:

(click to enlarge)

There is also a good possibility that IF we can't roll over at some point this week that things become a chop fest in the indexes with things moving more towards everything being more of a market of stocks with issues trading to the beat of their own drum. Fine by us from a hit and run standpoint long or short. We'll see about that though over the coming days.

In other words we need some chart time to see how things sort themselves out. We've overall done a great job in the hit and run dept. long and short and that's where we want to keep our focus for the time being.

This all the while the indexes basically go nowhere. Sure they are at one month highs! Isn't that great? On the surface it sounds great (according to headlines that flash across the screen) but when you look at the daily charts we are right back to where we were a little over 4-5 months ago depending upon what index one looks at - hence NOWHERE.

Can you see why we are more interested in hit and run and why you should be too?

To learn more and receive our free report - "How To Outperform 90% Of Wall Street With Just $500 A Week, sign up for our free newsletter or "like us" on Facebook.

Over the weekend, we addressed the news from Spain. But we didn't obsess about the news itself - instead we talked about how we were going to use REACTIONS to the news in the indexes to form our game plan to profit for the week.

And that's the key - Greece, Spain, Italy, US jobs reports, etc. etc. etc??? We just pay attention to the charts and do what the charts tell us to do. And nothing can be more simple than paying attention to simple support and resistance.

It's really that simple - when the markets and stocks hit resistance, we short or buy inverse ETFs. When the markets and stocks hit support, we buy stocks.

And we are still half way between support and resistance. Care to guess what we are going to do when the indexes and leading stocks hit support? That's right, we'll be buying stocks.

Over the weekend we said:

"Who cares, it's all about support and resistance (as laid out) and that is all you need to know. With a market potentially going range bound here it's all about buy the dips (cover short sells) at supports and sell the rips (take on short exposure) at resistance.

So what are we going to do about it? Well in the event of a pop (think a rip the face off of short sellers GAP open) we'll be at resistance and that's a sell the rips time which is also a consider short sell time."

We also said over the weekend and this is the game plan for the week:

Great bring it on as it's Wash Rinse Repeat all the while we get in get some points and get out long and short will be the mantra. Either way it's all about support and resistance.

As you can see from the charts of the indexes, all the Spain news did was take us up to resistance where the indexes promptly rolled over:

(click to enlarge)

(click to enlarge)

(click to enlarge)

The same goes for 2 stocks on the watch list for our paying subscribers - LQDT and SWI. As a result, we issued a Trade Trigger email alert on each:

SWI - Short at $44.68, now at $42.86 - a 24-hour return of 4.1%

(click to enlarge)

LQDT - Short at $65.45, now at $62.18 - a 24-hour return of 5%!

(click to enlarge)

So what's next???? We'll look to cover our short positions as the indexes hit support and at that point, we'll look at buying leading stocks that are also hitting support in tandem with the indexes.

To learn more and receive our free report - "How To Outperform 90% Of Wall Street With Just $500 A Week", sign up for our free newsletter or "like us" on Facebook.

We've shown you how to profit from short-sell set-ups the past two weeks. But the next pattern that will yield profits in the near future is the Coming Up The Right Side Of The Cup pattern which we'll talk about and show you current and past examples of here.

When we talk about issues Coming Up The Right Side of a cup understand that there can be no cup until you have an actually bottom of a cup. Take a look at a few examples from the past of what we are talking about.

(click to enlarge)

(click to enlarge)

Now let's take a look at a few current names:

(click to enlarge)

(click to enlarge)

Add our current position NQ to this list too.

(click to enlarge)

So here we are stacked in cash after locking some nice gains on the short side. From here we are going to be looking for long side names that we can work with over the coming days. We suspect from here it's going to be more of a market of stocks focus for a little while with something for everyone both long and short.

To learn more about this pattern and to trade in tandem with us regardless of the size of your portfolio, sign up for our free newsletter or "like us" on Facebook.