The NASDAQ broke its trend line on a closing basis, but buyers stepped in at the 50 SMA which is in line with the recent trading range bottom. Until that bottom is taken out on a closing basis, the overall trend is intact.
The VXN's topping candle foreshadows some sort of reversal or more likely, stabilization, following the sell-off.
I'll be away for the next 2 days. See you back here on Thursday.
8 comments:
Jamie,
Thanks for the up to date analysis before taking off. If the market bounces from here or stabilizes there are quite a few (of my) WL stocks that have some upside potential. Some are:
GRMN, HANS, MA, X, WLT, SID, RIMM, FWLT, FDG, CLF, AAPL.
If I were a betting man, I'd bet that at least one of these shows a good upside return before you return :)
Hey Jim,
Agree, some of the stronger charts will set up some good intraday moves. I'm sorry I missed the bounce in RIMM off of the 50 DMA. No excuses, I should have set an alert. 4 easy points :(
Since Jamie is out, perhaps he will not mind if I summarize Tuesday's action:
The NASDAQ daily printed an inside bar (IB) below the broken trendline and supported by the 50 SMA. NASDAQ volume has declined for the last 3 sessions, but is still at a relatively heavy level. The S&P daily also printed an IB below its 50SMA and on declining volume. Jamie's previous analysis anticipated stabilizing action.
On a day when you expect consolidating or stabilizing action, it is a good plan to look for both long and short setups. There were some good short setups today and a few select long setups.
I took CTRP short and AAPL long. CTRP was a gapper that offered 15m dummy entries or 5m retracement entries during the morning. The motivation for the AAPL long was mostly from the daily. If I had not taken the AAPL trade early, I might have decided otherwise with the somewhat choppy intraday action. I can often take a trade earlier, hold the trade longer, and make bigger profits when trading from a daily perspective.
Hey, what the hell? When you don't post, I find it hard to feel inferior...
-DT
Hey DT - Thanks (I think). I just checked your blog for the first time - very entertaining.
Wed: I worked today and did not trade. Both the NASDAQ and S&P dailies printed range expansion bars down following yesterday's IBs. The NASDAQ clearly breached the 50SMA. Volume was slightly higher relative to yesterday. Interestingly, neither the $VXN or $VIX made a new high today.
Probably a relative tough trading day as most moves came in the first and last hour with some chop in the middle.
Hey Jim,
Thanks for keeping the blog up-to-date while I was away. Good observations!
Hey DT,
You're on a winning streak. Volatility likes you, or vice versa. Whatever, hope it holds out for you!
Jamie,
We'll see. I'm feeling hopeful, which tends to be a reverse indicator for me...
Glad you're back.
-DT
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