The SPX had a major horizontal breakout rally following through on institutional buying during the last four hours of trading on Monday. The SPX closed 22 points above its 1,148 horizontal resistance for the first time in almost five months…
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Exchange NYSE NASDAQ
Advancers 2,465 2,156
Decliners 561 496
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Index Direction ConfirmationVIX Down Yes – SPX
SOX Up Yes – COMPQ
Leading stocks on Tuesday included SKX, VECO, FAS, DECK, FFIV, BUCY, FCX, USD, STI, ATI, LXK, JEC, PCLN, DE, WHR, TIE, SNDK, ICE, ZION, DOW, CREE, CMG, BA, MOS, VMW, AGU, CAM, GMCR, WLT, BAC, CLF, NDAQ, PCP, UNP, GR, IPI, HANS, MHS, CSTR, AIV, FDX, HAS, CAT, URE
Losing stocks included FAZ, NTES, POT, TLT, ATW, AMX, NFLX
Post your comment in the comment section if you think anybody actually listens (not hears) to what Dave says…I really am interested in what you think…
On Monday night I alerted everyone to place Bull Flag Trades and I in fact took extra time to demonstrate six trades and reviewed several others including BIDU and AAPL to encourage listeners to take the time Monday night to place trades in the event the bounce came on Tuesday morning. And came the bounce did as stocks moved higher from the open.
Interest rates were near unchanged, bonds fell slightly, the EURO rose, the SOX moved higher, the VIX moved lower.
All sectors moved higher with Materials XLB +2.82%, Industrials XLI +2.68%, Energy +2.35% and Financials +2.29% leading.
Tuesday’s SPX breakout rally was broad with advancers led decliners 4.39 to 1 on the NYSE.
Bull Flag Entry Signals on Tuesday: AGU, AIV, ATI, BA, BAC, BUCY, CAT, CMG, CREE, CRM, CSTR, DE, DECK, DHR, DOW, FAS, FCX, FDX, FLS, GME, GR, HAS, HSY, JEC, LXK, MCD, MOS, NDAQ, NYX, PCLN, PCP, SPG, STI, TIE, UNP, UPS, USD, V, VECO, WHR, WMT, ZION, GOOG, ISRG, AAPL, AMZN, BIDU, MICC, SHLD, CTXS, ILMN, NTAP, ESRX, EXPD, CHKP, STX and SPY, DIA, QQQQ and IWM.
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Bull Flag Setups for Wednesday: A, AMD, ATW, CAM, CRUS, ESI, GES, HANS, IPI, NETL, NFLX, NTRI, RMBS, SINA, TSL, UAL, VMW, WFMI, WLT, FSLR, JOYG, INFY, QCOM, INTU, LRCX, ADP, NVDA
SPX
Resistance: 1,170, 1,182
Support: 1,148, 1,130, 1,115
A large number of bull flags gave entry signals on Tuesday with an additional number of setups forming. Five of six virtual trades from Monday night filled on Tuesday NTAP, MICC, AMZN, NFLX and CRM. Only NVDA did not fill, the order is still open.
Enter bullish trades with a bounce off support and a break above the high of the low day or a break out of horizontal resistance.
Wait on bearish entry signals for a bounce down from resistance or a close below of the low of the high day.
The VIX fell -1.77 to 21.76, and is still below the 25 benchmark level.
The short term 3 day trend is up.
The three-month trend is neutral.
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 of the chart and follow your rules.
AAPL +10.30 – large white candle bull flag entry
QCOM +0.37 – black inverted hammer
GOOG +15.88 – large white candle bull flag entry
BIDU +6.48 – large white candle bull flag entry
NDX 100 stocks stronger than the NDX include: BIDU, ERTS, SHLD, NWSA, PCAR, ADSK, EXPE, EXPD, PCLN, LRCX, STX, DELL, CTXS, SIAL and AAPL.
Stocks weaker than the NDX: MRVL, ROST, TEVA, COST, FSLR, DTV and STLD.
Stocks to Watch on Wednesday
Holding Above 30 DMA
HLF, PCLN, RVBD, AGU, MCD, POT, FFIV, LVS, NFLX, CMG, TSL, FCX, SINA, VOD, AIV, BUCY, CAM, DE, DHR, DOW, PCP, SWK, UNP, URE, WLT, WMT, A, HAS, IPI, JEC, LXK, CAT, ICE, FLS, MHS, ATW, STI, ACN, ATI, AMX, GES, PNC, RMBS, ZION, NDAQ, UAL, USD, MA, NETL, ESI, GME, HSY, WFMI, CHL, FDX, NTRI, AMD, TIE, V, ATI, BA, CRUS, DECK, DLR, GR, UCO, USO, WHR, AKS, BYI, CLF, BAC, CSTR, GS, SPG
Moving Above 30 DMA = 11
CREE, HANS, MOS, NYX, PNC, SKX, SNDK, SWN, UPS, VECO, VMW
Moving Below 30 DMA = 2
NTES, TLT
Staying Below 30 DMA
CRM, GMCR, POT, TBT, X, FAZ, UNG
Intermediate Term Market Trend: Neutral
Short Term Market Trend: Up
35 comments:
Dave,
I listen attentively and follow your coaching to a tee. My trading has improved ten-fold over the past year thanks to you. I'm much better at spotting price "fluctuation" and not getting emotional when the market reacts to news or nonsense. I took a few of your trades from last night and I'm confident that I can manage them profitably. I've traded NFLX two times in a row with 350%+ gains each time. Looking forward to meeting you in Orlando next week and thanking you personally.
Thanks again,
Gary
Dave,
I absolutely listen and trade per your advise in your monday and thurs sessions. I am following my rules per your instruction and am up 15% over the last month mostly with swing trading. Keep up the good work and thank you very much for your insights.
Jim Ogle
Gary and Jim,
It's nice to know that there are two of you...thanks for reading and posting...May your trading continue to improve and meet your goals and dreams.
Cheers,
Dave
Dave,
You certainly have made me a believer in the merits of technical analysis. I learn so much each day I listen to you. You have that powerful combination of very sound technicals, experience and ability to teach that keep me coming back for more. Thanks so much and keep up the good work!
Mike W
Dave,
Listening, and listening, and listening again, and then trading my rules that keep getting better as a result of your teaching (and my listening)! Took 4 bull flag trades this morning. You keep on teaching, we'll keep on listening. Thanks for all your efforts.
Brian
It was a fantastic day today! I enjoy listening and following your advice. My trading has improved dramatically over the last few months.
However, I still am too aggressive about moving stops up and closing trades too early. Or, selling covered calls on stock positions when it is just a bull flag.
Thank you very much for your help!
Hi Dave,
We began listening to you (primarily Thursday tape delayed) and reading your blog a couple of months ago. (We are in the on-line PhD program and live in Alaska.) You have helped our trading a lot - particularly learning how to do entries and exits properly and let the chart guide us rather than our thoughts! We are both doing noticably better. We also appreciate you noting in the blog what virtual trades you have placed or exited. Thank you so very much for your generous teaching.
Debra and David
Dave, I've been listening (mostly recorded session) and placed 12 bull flag orders Monday night 10 were filled during the day all but one are profitable as of the close. Two weeks ago I had a trade that made 300% in 8 days. Thank you very much for sharing your "wealth" of knowledge and for your selfless mentoring.
Gary
Dave,
I have been listening to you several times a week for over a year and my trading has been improved dramatically since 4-day-Live Active Investing class at Utah in Feb 2010. I have also took couple trades from last night's trading room and they are already profitable in just a few hours. I have finally quit my full-time job end of August and trading full time and met my monthly goal last month. My dream of being as a full-time trader (trading for a living and be able to spend more time with my family) finally came true! Thanks so much for your insights and your dedication as a coach and memtor! You made my dream come true!!!
Sarafina :-)
Great session Mon night Dave!! What a profit map you laid out. Wow was there ever prophets in the crystal charts. (LOL) I saw more accidents than one could ever dream of as many of the short traders crashed running into each other with their shorts on fire (not in a good way for them).
Thanks Again,
Dave Lewis
Dave,
I've been using the the strategies and techniques you taught at the recent Advanced Technical Analysis Workshop in Cincinnati and have already noticed a great improvement in my trading. Thanks for teaching me how to trade profitably!
Terry
Dave, I am doing my best to listen an incorporate your teaching into my trading. I appreciate what you and the others at both Investools and TOS have done for me. Every person I've encountered make me feel as if my success in trading is important to them. I hope I have the opportunity to meet you in person in Houston at the ATA Course 11/30 and 12/1,
Come on Dave, you know we listen to you. You have four times or more attendees at your sessions than anyone else. It always amazes me how you look at a down day but see buying in the last half of the day and determine the probability of the up trend continuing. Especially when the 8 of the last 9 sideways market action lead to a pull back.
Reloaded on 12 flags yesterday. Still have to work on my over trading issue. However, I am improving my ability to stay on the right side of the market (I think).
Don
Dave,
I've been to two of your live seminars and read your blog every day. It has helped me immensely to become a better trader, especially in situations like this week. In the past I my have started to panic and close my bullish positions but this week I didn't and pulled a 2% account value gain yesterday because of it. You help me in the short term and most definately help me to improve long term.
Thank you so much,
Clint Cowles
I guess I'm the only one getting up @ 3am to review the archive before the next day's trading...
Certainly miss you on your "normal" online teaching schedule.
Working closely on not overtrading & my exits (moving stops, not "selling into strength too soon & not staying with the position to my target, etc).
Congrats to Sarafina! I'd like to have that option...
My sincerest Thank You, Dave!!
Scott L of Nashville
PS, don't give up on us... :-)
Hi Dave,
I read your blog every day. I'm just a meager graduate student, but your techniques along with access to the investor toolbox have given me the hope of not having to be an employee for the next 30 years. The past two months, my small account is up 8%. It is amazing what a little education can do. Thanks, and I'll keep reading and listening.
Philip
Dave, Short answer. Yes, I TRY! I miss you desperately!
My wife and I are serving a mission in Micronesia and the available internet speed is not fast enough to be able to get any streaming video, including capstone sessions or virtual coaching :( .. I catch what I can from the Investools Community forums and from you blog. I feel like a dog licking up the scraps!
I know from past experience that you know exactly what you are talking about. I look forward to getting back to an area where I can have high speed internet access.
Dave,
Maybe I'm listening to hard or making something simple into something hard but I am listening. Since I've been having the BGO's, the hole in my trading accts (Practice and Live) are getting smaller much faster than they were created which, in this market, is saying a lot. Thank you for your effort, time, dedication and ability to reach this blockhead.
Ron Ingalls
:) Trade w/ a Smile!
Dave
I have been listening to your coaching for a year and read your blog daily as part of my trading ritual. I appreciate all the time you put into passing on your experience in trading and technical analysis. My trading is improving as I continue to concentrate on following rules and improving my technical analysis skills.
Thanks again!!!
Mike
Dave, Absolutely. Glad you are back.
Thanks, Gail
Yes, Dave, a late comment to affirm that I, too, am listening and applying your teaching with many thanks.
Jeffrey Samuels
SF ATA class 2010 alum
I have been watching thursday night,Friday wrap-up,as well as following the daily blog and you have made a significant improvement in my trading,thank you soo much
Dave,
I listen attentively and react. Judging by the online commentaries in the chats, I cannot help but think that my thoughts are shared by a massive number of folks.
You are my centerline who regularly brings reason and judgment into often chaotic market conditions. I always come out of your sessions and writings with a higher level of knowledge and insights than when I went in. And, I put what I've learned to good use!
Ongoing thanks,
Jim
Dave,
I listen attentively and react. Judging by the online commentaries in the chats, I cannot help but think that my thoughts are shared by a massive number of folks.
You are my centerline who regularly brings reason and judgment into often chaotic market conditions. I always come out of your sessions and writings with a higher level of knowledge and insights than when I went in. And, I put what I've learned to good use!
Ongoing thanks,
Jim
Where can I find more info on attending a class or get info on watching seminars? Can someone help me? Stumbled on this blog and am trying to decode all info presented. Dont want to miss anymore. Thanks
JB
Dave,
Yes, I listened to your ATA talk Monday night and took some of the bull flag trades, and they have worked out well so far. I really like your style of teaching, and thanks for sharing your knowledge.
-Robert
I totally LISTEN and HEAR and ACT according to my rules and your teaching! Thanks for all you do!
Christy Gibas
PS..enjoyed Cincinnati and my father was sorry he missed it!
Of course we listen Dave. Loads of paper trades
JB...you need to become an investools student! But only if you want to make $$$!
Christy
JB: Dave is a coach at Investools ( www.investools.com ). He conducts frequent live seminars (for Investools) on Advanced Technical Analysis around the country, and hosts 3 online training sessions a week, plus virtual coaching throughout the week. He works tirelessly to bring us some of the best training available!
Dave,
I love checking in with you everyday. I have learned that trading rules are a must. Your trade your stock picks and patterns to look out for are great teaching tools. See you in Florida.
mary ann (What's my name )
Dave,
I definitely listen to you and it has significantly helped my trading results. Thanks.
Roy
Dave it looks like most of it has been said. We not only actually hear what you say, our brains are listening to it and adjusting our behaviour to become great traders.Thank you for you time energy and knowledge.
Dave,
Your web page is my home page and it is the first read in the morning, then the WSJ. Your Trading Rooms and Investor Talks give me the confidence to know what to trade, why to trade, and how to trade. Because of your efforts, I am attending th3 4-Day Live course next week. Thanks to your efforts, we all have a fighting chance to win in the market.
Cheers,
Joe Gance
Dave,
Just want to let you know that I do listen as often as I can and with each session I feel like I come away with things that are helping me improve.
Your teaching style and energy seem to motivate all your listeners, including me!
Thanks again and I just want to say how much I appreciate all you do to help us be better investors!
Take Care
Rich
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