So much for the down trend. The bounce has been great for daytrading though as we’ve traded the waves up and the sharp profit taking drops down.
We had a great morning Wednesday before volume dried up as traders were waiting for Alcoa (AA) earnings after the close. The markets are up moderately overnight on those earnings but is holding steady waiting for the Jobless Claims report due out before the bell Thureday.
ShogunTrading.com
The downtrend is full on. We traded POT, FAS, AIG, RIMM, FCX, and FAZ to close out a very nice week.
ShogunTrading.com
The SPX has FINALLY started a nice downtrend after the long drift up from 666. You can increase your percentage of trades that are short and your share size in proportion to the strength of the trend.
In my opinion traders are starting to look for results from the economic stimulus packages. The attitude is basically “show me the money!” if you will. All the economic reports, however, have been disappointing so far. Foreclosures are still up, unemployment is still up, Cash for Clunkers did nothing but send money to foreign auto makers and take from future domestic sales, more banks are failing and others are not loaning the money they received in the bailouts. The possibility of rising interest rates in 2010 are also on traders minds.
Continue to follow the trend Friday. Stick with the movers and be cautious with news due out before the open.
ShogunTrading.com
The market is waiting for employment numebrs Wed. morning. I am waiting to see if it gives us a lower top or continues its drift up. We are focusing on trading the open and scalping during the afternoon in the meantime.
ShogunTrading.com
Friday trading was a quiet end to a very profitable week for our traders. Short trades worked better on weaker than expected housing numbers and earnings reports. RIMM took a big hit in stock price after missing its target.
Watch the SPX for a bigger pullback but don’t go too heavy on short positions until we have confirmation of a reversal in trend. Every time the SPX has looked toppy in the last few months it has continued even higher.
ShogunTrading.com
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Another day of market gains. The morning was great for trading but the afternoon was slow as the FOMC meeting got under way. I expect a similar day tomorrow as the FOMC minutes are due out at 2:15pm.
ShogunTrading.com
The SPX opened with a moderate gap down, consolidated, broke to the long side and rallied into positive territory before closing down slightly. The short side still cannot find any longer term momentum.
Today we traded AAPL, AMZN, AIG (for the more agressive traders), POT, RIMM, LVS, FCX, FDX, and TOL. Again, most of our profits were in the morning session.
ShogunTrading.com
The SPX pulled back a bit today and we took advantage with some trades on the short side. Weather or not we will have a longer term pullback we”ll have to wait and see. We have been drifting up for months but this is the first time ther was a V top in the market where it tried to rally but was hit back down fast.
Quad witching on Friday (options expirations) so we are planning to call it a day after the morning session.
ShogunTrading.com
Nothing much to say except we are having a good week so far just following the uptrend. We are following all our usuals: RIMM, AAPL, FAS, FAZ, MOS, MON, POT. etc. Our Swing Trading Newsletter is also doing very well.
Keep buying pullbacks and don’t trust the short side. Every time the market looks toppy it shoots straight up. Take edvantage of it. Also note…quad witching this Friday.
ShogunTrading.com
We had a lot of hit and run, one wave trades that worked nicely. Volume didn’t pick up as much as I had hoped but it was a holiday shortened week and we had the Sept. 11th anniversary ceremonies taking up traders attention on Wall St.
We have a full week next week. Keep trading single waves until you start to see clean trends in the SPX or in sectors.
Have a great weekend,
ShogunTrading.com