SP500 1,217.28 +8.61 +0.71%
COMPQ 2,530.15 +11.08 +0.44%
Russell 2000 741.92 +7.61 +1.04%
Exchange NYSE NASD
Advancing 2,171 1,713
Declining 878 1,010
Oil $85.12 +0.90
Gold $1,153.10 +10.80
SOX 400.42 +1.48
VIX 16.62 +0.15
Index Direction Confirmation
VIX Up No – SPX
SOX Up Yes – COMPQ
Strongest Sectors: XLE+2.41%…XLV +1.00%...XLB+0.89%
Weakest Sectors: XLP -0.25%...XLY +0.08%...XLK +0.25%
Eight of nine sectors moved higher on Friday. Energy, Healthcare, Materials and Utilities were stronger than the SPX +0.71%.
Sector Watch
Up Trending: XLY, XLI, XLP, XLF, XLK, XLB
Horizontal Breakout: XLE
Sideways: XLV, XLU
Down Trending:
Key Resistance Levels
1,216 = Fib extension
1,220 = Sep 25, 2008 resistance
1,239 = Pennant BO target
1,255 = Mar 16 BO target
Key Support Levels
1,200 = Jul 2008 support
1,178 = Fib extension
The SPX opened near Thursday's close and worked its way to a new high close on Friday as did the INDU, TRAN, COMPQ and RUT. Under Dow theory today's new high close on both the INDU and TRAN confirms the current primary up trend.
Look at these Charts
(click image to enlarge)
Look at these Charts
(click image to enlarge)
Key Earnings to Watch:
Monday – CNI, DD, HUM, JEC, KSU, EL, LXK, MHP, NOV, ODP, RSH, SWK, TSM, TXN
Tuesday – MMM, AFL, DOW, F, FUQI, JBLU, LIFE, MHS, NEM, NSC, NUS, PNRA, LCC, UAUA, X
Wednesday – AKAM, ATI, APA, BIDU, BKC, CME, CERN, CLF, COP, ESRX, DAVE, FSLR, GMCR, HES, ILMN, K, LOGI, ORLY, OII, POT, RCL, HOT, VAR, VRSN, V, WLT, WLP, XLNX
Thursday – AET, AEM, AGN, AMX, BDX, BMY, CAM, CELG, CVX, XRAY, DLB, EXPE, XOM, JRCC, KLAC, MXIM, WFR, MET, PG, SPG, SWN, VPRT
Friday – AVP, DISCA
Guidance:
Friday was both a diagonal pennant breakout and a horizontal breakout on the SPX. The short term chart target from the pennant is 1,239, just 16 points less than the intermediate term 1,255 target from the 1,150 horizontal breakout.
There are a large number of support bounce and horizontal resistance breakout setups on the charts Thursday and Friday.
Continue to trade with the trend. Be mentally flexible and be willing to trade when your entry and exit signals appear.
The intermediate term chart target is still 1,255 in approximately nine weeks after the 1,150 breakout on March 16.
The VIX rose +0.15 and did NOT confirm the higher close on Friday.
The short term trend is up.
The four-month trend is up.
The twelve-month trend is up.
Continue to focus on and trade setups on the charts of the stocks you watch trade with the trend and follow your rules.
Continue to adjust stops according to your rules.
AAPL +4.36
QCOM -1.08
GOOG -2.07
BIDU +5.72
NDX 100 stocks stronger than the NDX include: SHLD, STX, FLIR, HANS, PCAR, FLEX, DISH, GILD, WCRX, NTAP, RYAAY, HSIC, PDCO, CELG, LOGI, CERN, VRTX, ADSK, MRVL, LRCX, AAPL, JBHT, XRAY, PCLN, DTV, AMGN, SYMC, BIIB, ESRX, BBBY, CHKP, ORCL, GENZ, ADP, NIHD, BIDU, FAST, MXIM, CMCSA, TEVA, ADBE, SRCL, FWLT and SPLS.
We have removed the following symbols from our watch list for new additions to be added: DLB, TDG, MELI, HDB, VAR, CEDC, WAB, AMED, VPRT, ALGT, CBST, HEAT, CGA, FUQI, K, BDX, STT, MON
Stocks to Watch on Monday
Holding Above 30 DMA
NFLX, UAUA, CREE, WHR, BUCY, UNP, CAT, V, URE, DE, BAC, DHR, JEC, FAS, UYG, USD, SNDK, FLS, DOW, AMD, AMX, WFC, MA, ZION, BKC, MCD, GME, TSL, BYI, CAM, SYNA, ATW, CHL, SWK, ACN, WCG, HLF, ICE, PCLN, PCP, WLT, SPG, DECK, GES, GR, BA, ATI, SWN
Moving Above 30 DMA = 5
CLF, HANS, MHS, UNG, USO
Moving Below 30 DMA = 0
Staying Below 30 DMA
ESI, GMCR, GS, FCX, X, WMT, PWRD, AGU, MYGN, IPI, POT, MOS, FAZ
Intermediate Term Market Trend: Up
Short Term Market Trend: Up
8 comments:
Wow, Dave!!!
I'm slowly getting it... Because of your options trading techniques, this week, I had my best options profit, overall position profit, largest roi per contract, biggest Day P/L & largest closing OA P/L!!!
Because of your "low maintenace (read simple)" style of trading, I am able to currently maintain 37 options stk w/ 48 different positions & certainly, more than 55 contracts at one time... Wow!!
Thank You for the personal & professional sacrifices that you make everyday to patiently Mentor us New Traders, like me!!!
Oh... My ending OA P/L on 2/08/10 was minus -$4275.00. Today, Sat 4/24/10 is +$11,279.50...!
All done, 100%, using strict entries/exits, position sizing & risk management techniques that I've learned from you!
Thank You, again,
Scott L of Nashville
way to go, scott if you have any suggestions on finding and using the discipline necessary, other than 'listen to dave'...which I do...but discipline is my downfall
Julie in QCA
Dave, I couldn't agree more with Scott......the systematic, "low maintenance" approach has made all the difference in my trading!! Thank you for all you continue to do for us!! You are such a blessing to us Dave! Scott, keep up the great trading!! So well done!!
All the best!!
Mishel
Hi Dave, I thought the SPX pennant breakout target was 1239 as you had pointed out during the market wrap on Friday?
Thanks for all of your writeups and trading rooms' teachings. I have learned a lot from you and achieved very good results.
Wai
Scott,
Congratulations! I'm glad you are putting forth the focus, effort and concentration to produce those results...you really are getting it.
Dave
Julie,
Discipline to focus is essential. Anyone who has attended my AT Worshops knows that I tell everyone after you get apply the other steps, one must apply discipline. Without discipline to follow through and do it, the possible succes just doesn't happen.
Do it.
Dave
Wai,
It is 1,239, I was just testing to see if anyone was actually listening and reading. You pass with an A+.
Cheers,
Dave
Mishel,
You're welcome and keep up the great work.
Dave
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