Wednesday, June 9, 2010

Ever Wanted to Learn...Today is a Great Day to Practice Flags and Hammers...

BMO – ES +5.50 and NQ +8.25 futures are slightly higher in pre-market trading pointing to a slightly higher open. In pre-market trading AAPL is +1.79, GOOG +1.92, BIDU +0.95.


Bonds are flat and TLT is up 6 cents in pre-market trading.

The Euro is up 23 pips in overnight trading and has fallen to new lows. The weak Euro continues to correlate with lower stock prices.

SPY is is up 34 cents and XLF is down 3 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX.

Stocks are slightly higher on light volume early in pre-market trading.

If you ever wanted to learn how to trade hammers and flags this morning is a great time to practice. You should follow your rules this morning and sell when you are supposed to sell and buy when you are supposed to buy.  Protect profits on bearish trades by moving stops according to your rules.


The market held at the key 1,040 support level on Tuesday and should look to a continuation of the support bounce while staying alert to the potential of the lower probabilty of a break of that support.
Continue to look to leading stocks like in our list below and HAS, HLF, OSTK and WFMI

Continue to Follow Your Rules.

Trading Down: FAZ

Trading Up: POT, NFLX, WLT, GS, FCX, CLF, HANS, CSTR, SNDK, FLS, MOS, X, CAT, USO, FAS, TSL, CMG, LVS, DHR, DE, WMT, WFMI, BUCY
The short term trend is neutral. The intermediate term trend is neutral and long term trend is up.

Trade those charts that meet your rules in the direction of the trend.

Follow your rules in any trading actions today. Be logical.

SPX
Support = 1,060, 1,044, 1,030
Resistance = 1,071, 1081

At the Open on Wednesday
SPY – bullish harami
QQQQ - hammer
FAS - hammer
TLT
HSY – breakout
UNG – bearish harami

BIDU - hammer
SNDK - hammer
DECK - hammer
CMG - hammer
BIDU - hammer
ILMN – hammer
UAUA - hammer
CAL – hammer
GOOG – hammer

NFLX – horizontal flag
AKAM - flag
DTV - flag
VMW – flag
CRM - flag
ALK - flag
AAPL – flag like
ORLY – flag
AAP - flag
SWN – flag
AZO - flag
LVS – bullish harami
ICE – flag like

AKS
X -
PCLN -
CLF –
DOW –
BBY –
MA -
V –
CAT –
PCP –
UNP –
FCX –
GMCR –
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1 comment:

Judy said...

Sorry Dave, but I don't know what you mean "practice hammers." Is it similar to practicing flags? Anyway, I got out of everything last Thursday on the big move up, just before the Friday fall (based on your Blog Title on Wednesday and the market action), and then dove back in on Tuesday AM (because of your comments on Friday's Market Wrap with Tom and Jason--and market action of course). I am currently in AKAM, CRM, DECK, ILMN, NFLX, SNDK, TBT, IWM (just because it looked like it was bouncing off of support a few times and there was what appeared to be a MacD bullish cluster [?]). That's all the money I have so had to stop shopping there. Do you have a paper on Hammers, like you do for flags. I sure love this post everyday. I have it with my morning coffee. mmmmm mmmmm good.

Judy

June 9, 2010 at 8:47 AM

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