Wednesday, March 9, 2011

Futures Point to a Lower Open...JDSU Down on Heavy Volume...

Counter trend trading?  See Monday morning's post...

BMO – ES -2.50 and NQ -8.00 futures are lower about 20 minutes before the open in pre-market trading and point to a lower open

TLT is up 36 cents and the Euro is down 4 pips in premarket trading and is holding above horizontal resistance, now new support

NDX leaders AAPL and AMZN are near even in pre-market trading…BIDU, GOOG, NFLX and PCLN are lower…

Look at JDSU which is lower on heavy volume in pre-market trading…

Dave’s Insight for Wednesday: Tired of one day moves with no trend follow through?  Welcome to a sideways consolidation.  Continue to follow your rules, look for breakouts up or down, support bounce and divergence entries and continue to enter when you see the signal

SPX
Resistance: 1,321, 1,330, 1,344
Support: 1,311, 1,300, 1,281

Quoting DownJDSU, CMG, MOS, POT, CF, CIEN, JNPR, AGU, CRM, HLF, ARUN, TBT, DE, CLF, GLW, WDC, CAT, RVBD, MCP, DOW, GOOG, WCRX, ALTR, PCLN, FFIV, NTAP, BIDU, NFLX, QCOM CTXS, WYNN, XLNX

Quoting UpUCO, GS, SWKS, SLW, GMCR, ZION, TLT, FCX, FSLR, MICC, ROST, AMZN, INTU, FLIR, RIMM

3 comments:

CR said...

Consolidations are great - we might not have alot of big moves now but we will - following our rules leaves us in a position to take advantage of them when they happen - Have a great day everyone

Anonymous said...

Quote suggestion:

"If I knew the future, I'd risk the ENTIRE account on every trade."

Steven R.

Scott Avery said...

Dave, the way you handled yesterdays lesson on ICE was excellent. Now we can see the advantages/disadvantages of changing the conditional order. I myself took the trade with stock (because the limit entrance strategy to was new, and the bid/ask spread on it was not good). I didn't get stopped out becuase I put my stop 1% below the low of the big bullish candle. But I also learned a lot. I was watching it in the morning and was tempted to take my limit order off until it convinced my that it was starting to go back up, but I didn't just to learn how it would be. Which one of the five minute candles would you (or anyone) have gotten in if you were watching it after taking off the auto entry. Would it have been the first strong bullish candle (10am) or would you wait for more confirmation of trend reversal?