| operandi |
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Gold User, Member, Platinum User, TeleChart
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| Registered User |
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| Unsure |
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| Monday, May 12, 2008 |
| Saturday, June 20, 2009 4:04:17 AM |
102
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T2108 is showing 92.25% on the daily chart, which must be of concern to the bulls
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Guessing at some of the SELLS, which I'm more interested in as I'm bearish at the moment:
7: financial co or car company? : GM
8: makes the most recognized mayonaisse : HNZ
9: strongest ssl encryption for online sales : VZ
10: dates back to thomas edison's electric company : GE
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DRYS looks great, however I just cannot go long at this point. There are too many factors pointing to a bearish reversal at the moment.
I'm thinking of starting a position in BGZ, but I'd be in DRYS like a shot if I'm proved wrong about a reversal.
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Let me guess:
1 never sleeps: C
2 don't leave home without it: MA
Credit card defaults are rising dramatically, hence my guess with MA
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Trading just a few instruments is great advice. If I'm not careful I find myself getting distracted by finding the days highest percentage gainers, spending ages looking through their charts and then end up not making any good trades.
I always monitor the SP500, drawing trendlines and watching for S&R levels. I then only trade a stock when it moves in the same direction as the indexes. However with stocks you then have both the influences of the indexes and the factors affecting that stock such as down/upgrades, news, rumours etc
Its dawning on me that I can make very good money by just trading the indices with ES futures and ETF's such as SSO, SH, SDS SPY. Add in the NAS and DOW, which move in a similar fashion to the S&P and you have more than enough trading capacity, without the additional complexities and challenges of individual stocks.
There is another very important and overlooked aspect of charts and trading that was briefly alluded to by thekubiacs. That is time.
The important times of the day are 10.00, 10.30, 3.00 and 3.30, all EST. Check your intraday charts and see how many show reversals at these times. Its uncanny.
If you plot your pivot points and S&R levels and then factor in time, you can then almost create a mechanical system with preset buy and sell orders. This is what I'm working towards.
Chris
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I think that there are two aspects to this - scanning for suitable stocks and then trading them.
You do need indicators to scan for the right stocks, unless you just scan for specific candlesticks. The Linear Regression 30 line that is such an important aspect of TobyDads system is a remarkable scanning aid, in my opinion.
TSV is also useful for scans.
When it comes to actual trading then I use the set up described. Support and resistance seems to be the central pillar that defines stock movements and using various ways to determine support and resistance is crucial, in my opinion, no matter what the time frame, instrument or duration of the trade.
For example, it would be foolish to buy any stock that is butting up against its 200 MA, no matter what indicators you are using.
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Just following on from my post above.....
Support and resistanace from trendline analysis can be amazingly effective. For example, if you look at SPY today, it was bound in a narrow upwards channel from 1pm onwards and then closed just below todays gap window. All this was very predicatable
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Price, 20,50, 200 SMAs, volume and the ability to draw trendlines, plus candlestick recognition, is what I use too.
Pivots points are also plotted on my charts, as is VWAP which is important as its used by institutions and brokers.
To me, its all about support and resistance provided by trendlines, the VWAP, major moving averages and pivots.
Chris
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Daily volume on Friday was one of the lowest this year so it was easy to manipulate a close above 8000.
Nice headlines for the weekend.
However we are so over bought now that a pullback must be due - probably a 318 or even a 50% pullback.
Notice that Fridays volume was about the same as that on February 9th, which marked a pivot high.
I expect a gap up day on Monday as retail floods into the market after the euphoria of the Dow achieving 8000. The pullback may then begin later next week, probably around Wednesday.
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Sorry, I didn't want to derail this thread with my point about the NVA.
Granted, it was lack of political will forced the US Military into a position of defeat, although I believe that the US Army relied too heavily on mechanised and stand off tactics and weapons to fight a low intensity insurgency, which also contributed to those desperate last few days in Saigon.
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