Trade Setups for Wednesday 3rd August 2011
I like to write few words about today expectations. We saw two trend days down in row what telling us how weak market is at this moment. But after two trend day it is too risky for me to take any swing short setup and because of that (depends on open action) I will look only for faster short setups, like 5/15 min setups. On the other side long trades don’t work, what is not strange after two trend days down. When I see indices monthly time frame charts I see (at this moment) room for more selling pressure and pull back to monthly 20sma support area. Because Of that today and tomorrow my focus will be on daily bounce and I will look for intraday phoenix and CCI divergence setups. I hope they will turn in too few days swing trades, but I don’t expect (at this moment) that we will see any bigger market bounce. I have some ideas like NUS and PDCO but I like to see open action first and I will post all updates during day if will be worth risk setups in my opinion. I also like SNCR, MMM, BIOS, MFN, HSIC, QCOR, VAL and intraday possible short setups like GME, INFA. I will follow them during market hours. Also I like to say that in my opinion it will be smart to be patient at the open at least 5-15 min. Taking new short (longer term) right now is like jump in running train and I think that I better to wait station (trading pattern). Every jump could be short term (scalp).
Wish you all best today!!!
TRADING THE OPEN
During normal market conditions our regular setups generally do very well regardless what time they are taken. Trading right at the open always adds risk. It is recommended that new trades not be taken for the first 5 minutes the market is open. I will treat each new trade that sets up during this time as a gap trade and wait till the stock comes back and takes out its 15 minute high or low.
Trading is risky. It is our job as traders to reduce this risk and increase our chances of success.
IMPORTANT: Take only the opportunities that you really like and understand. Always enter a trade with a trading plan. If you have any questions, please feel free to ask me. There is a much greater chance of success in your trading if you understand the trade. That is very important. Taking just a few trades is enough to be a successful trader. Overtrading is probably the number one reason new traders fail. I personally mostly take swing trades. Please remember to keep that in mind!!!!!!!!!!!!!!!
If you have any questions, please feel free to contact me.
Good luck trading today!