Dave will be on the Weekly Wrap today at 4:30 pm ET with Tom Sosnoff and Ben Watson...
3:59 pm ET - NQ and ES futures, SPY and QLD moving towards their high of the day just before the market close...
2:30 pm ET - NQ and ES futures break out of resistance...
2:15 pm ET - I'm often asked can a trader do well if they have a day job and can only place orders at night. Earlier this week on Wednesday we shared our virtual trade on SNDA which was placed Monday night. Click here: http://chartsignals.blogspot.com/2009/04/djia-152.html
Here is another virtual trade progress report from our Monday night Advanced Technical Webcast...we entered a trade to buy 10 May 50 DECK calls based on the stock rising above 53.18...DECK did rise Tuesday morning and the order was filled just after the open at $3.20 per contract. Options are currently trading at 5.60 a gain of $2.40 or 75%.
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2:05 pm ET - NQ and ES futures are pulling back from breakout and resistance...
1:55 pm ET - NQ futures are breaking out and ES futures are at horizontal resitance...
12:30 pm ET - Thursday's NQ high was 1,310.75...overnight the NQ made a high of 1,315...notice that NQ is trading near Thursday's high...this represent short term resistance...and the potential breakout area...
12:15 pm ET - Does this QLD chart make the pattern clearer? Tell us in the Comments section, what pattern do you see and what is its price target? I'll respond later and let you know.
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12:05 pm ET- SPY is now up by 5 cents...take a look at QLD as the Nasdaq market has been stronger all morning...What does pattern can you see on this chart and what could it be telling us?
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11:55 am ET - RIMM is leading the Nasdaq Friday morning...Can you see the large double bottom and the breakout point? How might an intermediate term trader, trade a chart like RIMM?
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11:30 am ET - SPX continues to trade above Thursday's S 1 level...
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11:10 am ET - Not withstanding the worst unemployment level, 8.5%, since 1983...the markets have been hanging out this morning down slightly...SPY is down 57 cents but the ultra Q, QLD is up 30 cents...let's face it high unemployment is not a positive thing for American families and actually is bad news...as I have taught traders for several years, its not the news that is significant, rather it is the market's (big money) reaction to the news, that counts...so what is the reaction? Markets are down slightly on relatively light volume...when a market is trending up and big money only sells off slightly in the face of the worst unemployment rate in 25 years that tells us that the current economic environment is already known and priced into the market...net result appears to be that big money is allowing any timid traders or profit takers to exit before resumption of the up trend of the past four weeks...
10:55 am ET - Michael asks "Can you tell me the significance of the NQ?" Dave answers - Michael, the NQ is the Nasdaq futures...the ES is the S&P futures and YM is the Dow futures. Today the NQ futures are stronger than the ES futures in large measure because RIMM a major component of the Nasdaq is trading up almost 20% on heavy volume. A trader can watch which ever markets help them in their trading. I like to watch both the ES and NQ and watch for strength/weakness in both markets.
10:50 am ET - RIMM, GILD and WYNN trading to the upside with above average volume...AAPL trading up on below average volume...
10:48 am ET - ES futures do not break 828 resistance move lower to 823...
10:26 am ET - ES futures forming potential double bottom on 1 min chart (also on 5 min chart) watch 828 for breakout...
10:17 am ET - NQ futures confirm spinning top and rise...
10:12 am ET - NQ harami does not confirm...falls to 1,293 and finds support forms spinning top on 5 min chart...
9:57 am ET - NQ drop to 1,297 form potential double bottom and bullish harami on 5 min. chart...
9:48 am ET - NQ futures roll over after hitting 1,309...
9:40 am ET - NQ futres are rising while ES futures are down...likely due to RIMM and AAPL being up...
BMO - ES -4 and Nq -0.75 are down slightly just before the open...suggesting the cash markets will open flat to down...Unemployment numbers out this morning are 8.5%, the highest rate since 1983. ES futures are slightly lower than NQ likely due to the strength of RIMM which reported earnings last night that beat expectations...
At the Open on Friday
SPY – bullish engulfing
RIMM - earnings gap up in after-hours trading
SNDA – rose to price target mid-range
DECK – doji
CTSH – at horizontal resistance
WYNN – horizontal breakout
SCHN – horizontal breakout
FCX – shooting star
OSG – shooting star
X – at horizontal resistance
BRCM – horizontal breakout
FAS – at horizontal resistance
EBAY – spinning top
TNA – at horizontal resistance
URE – confirmed bullish harami
24 comments:
Dave or anyone,
Can you tell me the significance of NQ? What does the NQ give indication of in the market? I have been following your post but haven't quite made the connection. Thank you in advance.
Michael VonDran
Dave,
Loved your AT talk last night.I learn so much from you every session. I admire your dedication, truly amazing, 5 hours!!! Thanks for your intraday posts on the market. It's like trading side by side with a pro.
Have a great weekend!
Peggy
Good day Dave,
Learn alot from your AT talk last night, this morning notice the double bottom in the 1 min ES and got in after break above 20 DMA in 5 min. I am trying to be right side of the market. Appreciate all do you for us. Is there anything else to keep us on the right side of the market do let us know.
Meri
Dave,
Is AZO forming a bull flag / hammer? Something similar to the entry signal formed by SNDA and DECK just a few days ago?
Regards,
Luis
The top of the breakout point is about 60.47. The bottom is about 35.26. The difference is about 25.21, which added to the breakout point give a target of about 85.68.
However, there may be some resistance at about 77. The target of 85 is in the middle of a big gap down from Sep-26-08.
Regards,
Luis
Dave, I see price target on RIMM of 85 with a break above 60 however I can also see it stalling at 77.5 before filling the gap.
Dave,
Great stuff here lately ... I used to be an every now and then reader but I find myself here quite a bit more lately.... keep it up, I love the pure technical stuff.
Dave,
I see a similar pattern for QLD and RIMM.
For QLD, the top is 30.45, the bottom is 24.75, the difference is 5.7, which added to 30.45 gives a target of about 36.15, which is quite close to the next resistance level.
Regards,
Luis
RIMM -- Could have a 25.97 move to the upside. I would want to see the close tomorrow be above today's high before entering the trade. I am a little concerned about the gap up on heavy volume, does that have an impact on determining entry or target price? Could there be a pull back tomorrow? Those are questions I struggle with.
QLD could be forming a inverted head and shoulders. Looks like today it is stalling at resistance.
Great AT talk last night! QLD formed a bullish, confirmed inverted hammer. New target (T1?) is 32.25 (29 - 25.75 = 3.25).
qld break out 10 points and old resistance at 40 can we also say if it took 3 months for double bottom to form could take three months or 3 weeks,to hit target simmilliar with rimm 25 break out pattern with resitance at 75 and then gap to fill
QLD
Firm Support Level around 20 with 4 touches at resistance level around 30. Breakout is possible with anticipated target about 40 in about 6 weeks to 2 months or less. Bull Flag pattern recently formed and hit target1 and almost target 2. Good volume pickup on the push up. Looks like an inverted Head and Shoulders pattern.
RIMM
Firm support level around 35 range with 3 touches at resistance at 60.
Breakout is possible with anticipated target about 85 in around 2 months. Good volume pickup on the push up for the last 3 days. Looks like an inverted Head and Shoulders pattern.
Thanks
Rodster
Sorry, I posted RIMM as Inverted H&S, should have been double bottom.
Thanks
Rodster
Dave,
QLD - looks like an inverse head and shoulders pattern forming. Just breaking resistance at $30, and volume (so far) appears "above-avg". If it holds, pattern would be confirmed and next upside target is in the $35 - 37 area (resistance at 35, fib 162% level @ 36.50). After that, based on support of double bottom at 20, would project 40 - 42; there is resistance at 42 (Oct 08).
RIMM - Double bottom in process of forming today on strong volume - over double the average daily volume at 1:30 PM ET); but size of gap up is of concern. If RIMM manages to close above 60 today, I would wait for support (old resistance) at 60 to be tested and enter a trade off of the bounce. Upside to 85 possible based on difference between 60 and 35 area; next area of resistance after 60 holds is at 70 (going back to Oct 08). But again, the size of the gap up concerns me...
I think QLD is H&S Bottom (inverted), target should be around $38.40 if I got my neckline correct. There was increasing volume (~125%) as it broke the neckline yesterday, but may want to way for a retest of the neckline.
Inverted head and shoulder (piggy bank ) target on break out of $10.90
QLD inverse head and shoulders, with price target of 40.74 I would do a July OTM call and watch the market action as this pattern took 4 months to set-up.
RIMM double bottom with price target of 85.89
Light vol is bullish as the market retraces a bit also the VIX is down $1.58 at 1:37 EST .
Rimm on a break out of resistance you could sell put spreads, naked puts Buy stock with covered calls to take advantage of VIX but my choice wait for pull back unless it breaks out and go long on the bounce. I've been in several days on RIMM :>)
It's easy to grin / When your ship comes in / And you've got the stock market beat. / But the man worthwhile, / Is the man who can smile, / When his shorts are too tight in the seat.
Hi, Dave. QLD looks like a double bottom to me, with a target of 40 if it breaks through resistance at 30. And it looks like it will need 4 months time to reach it, maybe.
hmm, if I could remember my aol password....
Jim
Dave,
Wondering about candlesticks, support, resistance, and other buy/sell signals.
When you spot a signal how much cushion do you give your trade? Sometimes I'll spot a evening star at resistance, then buy a put at the close. Then it pops and hits my stop and dives down. I know that the stops are there to keep me safe, but I suppose that I'm setting my stops too close? Need any assistance that you can give.
Thanks,
Eric
RIMM....is this now going to be a new level of support? It probably will go in a higher channel....but HOW would you trade it?
QLD head & shoulders....target 40-45 area
Lois
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