Wednesday, June 02, 2010

Technical Picture - Low Volume Retracement

The candlestick patterns on the $USD look somewhat bearish, so we may get a retracement back towards the trendline. This would allow energy and commodity sectors to bounce. On the S&P we need to see a move back above the 200 SMA.


TraderLars said...

hey jamie, its been a long time, how are you doing? thanks for the netapp trade, hey if you get a chance later on after the close, could you take a look at coinstar end-of-day and tell me what you think. it looks pretty bullish to me.

thanks. have a good trading day.

Jamie said...

Hey Lars,

I'm good. Hope all is well with you too.

Yeah, CSTR looks very bullish - Earnings gap with volume spike in late April - held up very nicely during the correction and continues to trade at new highs despite the lackluster market.

Also like APKT, AKAM, NFLX for similar reasons although the first two aren't at all time highs.

DW said...

Dear Jamie and Jim,

Thanks a lot for your posts. They are always helpful.

Could you please give me some opinions about ARO on 6/3/2010? I long it at 30.50 as breakout of the 3rd 15min bar, and stop out at 30.20. I am learning your B&B setup recently and not sure whether this BO failure is an unavoidable system risk or it was not a qualified B&B pattern? If you guys saw ARO yesterday morning, would you trade it as a B&B or there were some factors let you did not trust it?? Thanks..

On the other hand, CRM breakout $92 successfully.

Best wishes

韋成 said...

you always know the right thing to say!............................................................

Jim said...

Hey DW,

Jamie has been "carrying the mail" in terms of blog posts. Of late, my trading focus has been on stepping up to larger position sizes.

The question that you ask (how to distinguish between higher and lower probability setups) becomes even more important when increasing your trading size. The best way to learn more about making these distinctions is through relative comparison. I will post a couple of charts comparing ARO & CRM to address your question.