Tuesday, January 31, 2012

Trade Was "Different" Today - Setups Included for Wednesday

 Kind of a different day today on Wall Street - for the first time in a while, we saw a nice open that was met with selling and it seemed to me (from what I could tell checking in at lunchtime) that there was some distribution going on today.  I know we had some selling off the highs last Thursday, but that came after a big session the day before and a slightly overbought market so it was a little bit more easily explained.   Today's selling came after two days of light selling that was consolidation-like in nature.   The market did bounce back but I was expecting a nice day today and we didn't really get that. 

It is possible that with the run-up we had over the past month that we are just putting in a choppy consolidation right now that will eventually lead to higher prices.  The S&P and Nasdaq are still holding short-term support (just barely however on S&P) but are kind of getting to a point this week that if they don't get going, then the nice, smooth January move we had recently is over and we are in for some more choppy trade or consolidation.   I'm still bullish but as always ready to switch if necessary.

Here are the setups I will be watching tomorrow, although I have my full number of positions as of now so any new ones will likely be taken as day-trades like REE was today (in hindsight, not a great move to not hold that longer). I was stopped out of two positions the past two days but I replaced those with new positions late in the day.   My stops on all positions have been tightened a bit. 

All Charts from TC2000, Courtesy of Worden Brothers, Inc.

I also wanted to share a special free webinar tonight from TC2000 that you may be interested in watching.   The information is below.  You can download the TC2000 software right here and sign up for a free 14-day trial if you're interested in checking out the software.

How do you know how many stocks are participating in the current market movement? It’s called “breadth analytics” and it helps you figure out how strong a market move is. You can combine this with momentum indicators to zero in on key market turns. 

Register now for tonight's free live webinar. Julia Ormond and Michael Thompson will show you how breadth indicators contribute to a better understanding of underlying market conditions and how momentum can be used for timing and direction. Webinar content will be presented for 45 minutes with an optional 15 minutes of Q&A to follow.
You'll learn:
  • How breadth indicators can tell you when the broad market is rolling in either direction, including the percentage of stocks above their 40- and 200-day moving averages and the Advance/Decline.
  • How individual stocks are responding to market direction using momentum indicators like TSV and MACD – looking for confirmation of our original findings.
Hope you can make it!
Worden Brothers

1 comment:

Anonymous said...

thx alot mac

i will pick HOGS after the overbought correction finishes. i like its long term head-n-shoulders bottom pattern.

really thx