Wednesday, July 30, 2008
Pre-Market Futures: DJIA +68...S&P +7...Nasdaq +15...Russell +5
Earnings BMO
Pre-Market trading:
AVP +3%...CAM +3%...CMCSA +3%...GRMN -13%...HES - 2%...MCO +2%...SLAB + 7%
Futures are trading higher this morning continuing yesterday's rally. Markets appear to have made a higher low on Monday which now means there is a higher high and higher low on the charts. Of course a higher high and higher low belong with an uptrend so we may be at a key turning point in the makret.
Earnings, financial stocks earnings and oil prices are still the drivers in this market.
If markets do pull back today watch the S1 level of Tuesday's large white candle.
We'll be back later...
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2 comments:
Hey Dave,
I just wanted to thank you for the blog. I especially like the section in which you list the stocks that have developed patterns. Thanks for all your work.
Christina
Aloha Dave
A few topics I'd love to discuss. I can bring them up on the Active Investor Talk tomorrow too but in case you wanted to do them here also.
1-You've discussed numerous times about playing "Earnigs Gaps" where after the stock gaps up or down after earnings, it will usually flag and then continue on so play the flag as you would any other flag and it's gap direction. My question here is how does that concept work with the "All gaps are filled" folks are always talking about since the two are direct opposite plays?
2-"End of Day" versus mechanical stops. Is there any information to help decide when to use an End of Day stop so not to let intraday swings kick you out versus letting the stop potentially save you when the stock is not swinging but definitely going against you. Todays market action kicked me out of a trade by 3 cents then swung back up (it was on the Q's and I was using S1 from the day before as my exit)so I took a small loss instead of having a gain. Wasn't big but it seems to happen a lot even when I use 25-35 cents below the low of the low day on a bull flag etc.. I have been toying with using a double stop system where I have two stops, one that is kind of a 'Oh My God', get me out and the other is the normal stop but only executed in the last 5 minutes of trading. Easy to do in TOS as long as you do it every day.
Any thoughts as always are appreciated.
john
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