Wednesday, February 18, 2009
Good Morning...is Wednesday Comcastic?
BMO – More than an hour before the open the SPX +4 and Nasdaq + 4 futures are trading slightly higher than Tuesday’s close. This indicates a slightly higher open. If price action follows through to the upside, watch for short term resistance at the R1 level of Tuesday’s large black candles.
We’ll be watching our 22 Bull Flags for potential support bounce today since Tuesday was a new low day. Keep in mind these are high volume stocks that are stronger than the broad indices. Here is the list: CHKP, DISH, EXPE, HANS, ILMN, LLTC, MRVL, MXIM, STLD, XLNX, VRTX, AAPL, AKAM, BIIB, GILD, AMZN, CEPH, GENZ, GOOG, JAVA, RYAAY, SYMC
Only CMCSA's earnings look Comcastic this morning, so earnings below expectations may provide opportunity to the downside...
Wednesday, Feb 18
BMO –
AVA +0.32 below +0.39
XEC +0.32 below +0.45
CMCSA +0.27 beat +0.22
CEG +0.03 below +1.24
DE +0.48 below +0.63
GT -1.22 below -0.97
JAKK +0.55 below +1.05
OMX +0.02 below +0.15
STP -0.27 below -0.26
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4 comments:
Hi Dave, I have been reading your blog and have learned a lot. I would like to learn more. Is their a place that you do live training? I am a member of Investools, but I don't currently have access to AT Rooms only the education. What do you mean by R1 level of support? I appreciate your blog and you willing to help anyone learn about market conditions. Thank You. Michael
Michael,
As i understand they are based on the fact that when we have unusually big body candles, (candles that look bigger than average to you) the mid point gives us a level of support or resistance. So for example on yesterdays SPX the mid point (803) would be R1. That is the first level of resistance we would have to break through and hold if we are turning up. If we did that, the next level of resistance would be the open of the candle (818) which we call R2. Then the high of the candle would be R3 (in this case the high and the open are the same as there is no shadow or wick on the candle). And it works the same for big bullish candles giving us a level of support. The mid would be S1,...the open would be S2 and the low would be S3. Hope that helps.
Michael,
You're welcome!
In addition to AT Rooms I do a Foundation Course Room on Thursday morning at the market open. I also teach 2 Day Live Workshops.
R1 is a resistance level. It is the mid-section of a large black candle.
DJ
Thank you for the insight, I appreciate you gentlemen for your help. Dave I will do my best to look you up on the AT rooms and maybe a 2-day.
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