Tuesday, January 4, 2011

Futures Point to a Higher Open...

Good morning Chart Signal readers…Welcome to the second trading day of the year…Read the January 1 Post and let me know if you have not yet taken the first simple step to making 2011 your best year yet!  Do it now!

BMO – ES +3.50 and NQ +8.75 futures are higher about 20 minutes before the open in pre-market trading and point to higher open…stocks are up on heavy pre-market volume…XLK and  XLI are up around +0.25% in pre-market trading….

So, look at these charts NFLX, AAPL, AMZN, GOOG, ISRG, MICC, FFIV, POT, WLT, VECO, SINA

TLT is flat and the Euro is up 43 pips in premarket trading

NDX leaders AAPL, AMZN, GOOG and NFLX are higher in pre-market trading…PCLN is lower…

Dave’s Insight for Tuesday:  Adjust your stops to protect profits according to your rules…

SPX
Resistance: 1,256, 1,281
Support: 1,241, 1,220, 1,209

Quoting DownMCD, FCX, CMG, SPG, MOS, URE, SRCL, CHRW, PCLN, WFMI

Quoting UpMA, POT, WLT, VECO, SINA, AGU, GS, VMW, LVS, FLS, CRM, A, SWN, IPI, GES, STI, SNDK, V, PCX, BA, MHS, DECK, NFLX, AAPL, AMZN, GOOG, ISRG, MICC, FFIV, ILMN, VRTX, GILD, QCOM, RIMM, VOD, ALTR, WYNN, AKAM, APOL, DTV, BRCM, BIDU

2 comments:

Gary said...

Dave,

I guess I was looking for more specific oil, gas, gold. I know we've traded some energy in the past WLT,ATW, etc... but I guess I've never seen you trade XOM, BP, USO, ATPG, OXY, ABX, AEM, GG, etc... I figured that they may be too hard to trend trade because they swing hard. No big deal but if I'm refining (no pun intended) my trading this year, I wanted to know if you had a reason for not trading those (that I know of?). I may be off on my chart, but I see a breakout in BP from June-July during the spill. I have a chart target of around 52.07 on its intermediate trend. I took a trade
on 12/01 and sold on 12/15 re-entered on 12/31 and have T1 @ 48.98 and T2 @ 52.07. Sorry for rambling, but I hope I'm reading the charts correctly.

Thanks,

Gary

Dave Johnson said...

Gary,

Thank you for clarifying. Your view of "specific" is the way you see it, which is pretty normal with most of us.

The only reason I don't have the ones you list is the same reason I don't have the approximatley 7,000 other stocks listed on the NYSE, AMEX and NASDAQ NMS on my list. I can only look at so many stocks.

The Chart Signals list is a well diversified list and has a lot of srong trending stocks.

Candidly, I really don't care what companies I trade as long as they are trending and offer an above average opportunity to make money on the trend. Of course I have stock criteria but there are many others I that meet my criteria that I don't have time to watch.

I'm not going to take the time to compare but there a lots of stocks in Chart Signals list that outperformed the good ones you listed. Some like SINA, WLT, NDAQ, USD, GR, RVBD, X, CLF, CF are still in a much stronger trend than the gold stocks.

Utimately, trading is not about trading specific gold, oil or any other kind of stock for that matter. TRADING is about MAKING MONEY while intelligently managing risk.

If you are consistenly making money trading gold and oil stocks...keep it up.

As always, best of success.

Dave