Tuesday, July 19, 2011

Earnings Will Dominate Technicals This Week

As a technical trader, I always look at the charts to tell me which direction the market may head in the upcoming days, but right now, in this current environment (specifically this week with over 500 reports coming out), technicals may not matter that much.   We are oversold as you can see below and I do think any good news we get could give this market a quick reflex bounce.   My main signal and breadth signal are actually both negative right now but I think there is still potential on the long side here as long as you keep your stops in place and pick the right stocks. 

Here are a few setups that I will be watching.   I am still seeing quite a few good ones which is a main reason I am leaning bullish here.  I am currently long three positions - all of my trades can be found on my homepage (link to spreadsheet).

Charts from Telechart, Courtesy of Worden Brothers, Inc.

It's certainly not an easy market but if you are nimble, you can catch a good trade here and there.   Let's hope this week provides the spark for stocks to move back up toward the top of this god-awful range of the past five months and provide an easier environment for swing trading.   Right now, all of my trades are VERY short-term in nature.   Good luck today.

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