Thursday, June 10, 2010

Technical Picture - Markets Push Higher

Broad based push higher on stronger economic data and euro strength vs. USD. Weakness was limited to Gold. Energy, commodities, transports, industrials... sported gains in the 4-8% range.

As depicted in the chart above, prices have pushed through the ambush zone. The next areas of resistance to watch are the 20 EMA, followed by the 200 SMA.

The ascending triangle BO in the $USD appears to have failed. Next support level is the 20 EMA.

OIL and Agribusiness charts are forming ascending triangles.


The SPY held support of the ORL and eventually made an attempt to rally. I mapped out the Fibs from the support base to the top of the early afternoon thrust, waiting for an ambush trade. It set up perfectly and momentum continued throughout the balance of the session.

Gold, was weak again today. This is my third consecutive day, shorting GLD and/or gold stocks.

I placed my fibs from yesterday's late day highs to this morning's lows and waited for a setup.

17 comments:

Larry Arndt said...

hey jamie.

r u still bullish on netapp? its gettin really tight on the daily, wundering if we gap up and go tommorow.

laterz.

Jamie said...

Larry,

I'm still long NTAP. I also like AKAM, APKT, NFLX. Good day trades on all these Wednesday.

Larry Arndt said...

akam and nflx, nice i've traded those long in the last couple of weeks as well. i'm gonna have to check out apkt. i'm disappointed in coinstar. i traded the opening drive the morning i chirped it on your blog. at that time i was hoping for some follow through or a strong day, but the daily bar didn't meet my parameters for an end-of-day trade. unfortunately now it is looking weak.

oh by the way, larry arndt = traderlars

hey take a look at goldman and cisco as shorts.

Luis Miguel said...

Jamie: I'm a newbie but following you daily since TraderX left...Why didn't you shorted after the 8th bar?...I think I would have done it and have got stopped out.

Thanks in advance,

Luis

LC David said...

Nice post, very informative photos. i really got good information.

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RivTrader said...

Hi Jamie,

Nice to see your new blog format...congrats... Good to see you are still around giving us some trading tips from time to time. Others faded, others turn to money making tips, but yours, still kicking...always giving us some great lessons. Thanks a lot.

Jamie said...

Hey Larry-Lars,

AKAM, NFLX, as well as NTAP extended their upward trajectories Friday, with all three closing at new highs.

GS will likely be a short candidate until it can put all the bad news behind them. Thursday would have been a good day trade short, but I missed it. CSCO looks like a bear flag on the daily. I'm sensing that the correction could be over soon, so I'll put these on standby in case it persists.

Jamie said...

Luis,

Thursday 8th bar GLD 15 min. was a narrow range consolidation stick in the upper half of a green wide range bar. It closed above the 5 EMA and the longer lower shadow, gives it potential as a bullish consolidation. The next 2 bars follow suit and price eventually notches a new high.

I was looking for a bearish reversal signal in the ambush zone - 50%-62% retracement level. The hanging man followed by the weak red stick which closes just below the 5 EMA signals that price is more ready to role over.

Jamie said...

RivTrader,

Thanks for the kind words. The blog keeps me focused so I'm trying to keep it going, but it's difficult to make time during the Winter Olympics and NHL play-offs. Fortunately, I'm not a soccer fan.

Cheers!

Larry Arndt said...

Jamie:

I tend to agree that the correction in general might be over soon. However I'm getting the vibe that a news driven catalyst is going to continue to move GS and CSCO lower despite a potential squeeze higher in the broader markets. However, I think the wildcard here is the Euro, and as of right now, it still has some problems. The thing I like about both Euro and Cisco in terms of the bearish trade are as follows.

Both have broken major support levels and put in shallow consolidations under those levels. Cisco broke the "flash crash" low on strong and is now having a difficult time even staying above the "flash crash" low. Euro has broken a monthly level on high and has also consolidated sideways on light. I realize this is a different market with irregular condition and these might seem like perfect issues to squeeze higher. However I'm just not seeing that, both in the case of Euro and Cisco, demand dried up in the consolidations and sellers made it clear that they are not finished.

Anyways, yea that was a nice move in netapp, thanks for giving me the headsup a week ago. It popped up in a daily bar scan that morning for obvious reasons and we had a nice move higher.

Take care.

Larry Arndt said...

............

I think the obvious caveat here is summer conditions. Fresh SQUEEZED lemonade anyone?

Hey on a sidenote, I am from Chicago and I'm not a hockey fan. However, the other day I was driving around the north-side and someone launched a full stick of dynomite about 30 feet in front of my car. I thought I was in a war zone, however later I found out the blackhawks won it!!! GO TEAM!

Jamie said...

Yeah, hockey fans tend to get carried away. We had a lot of crazy fans destroying things downtown as the Habs made their way to the QTR finals.

Luis Miguel said...

Thank you very much for the answer Jamie!, you are very nice!

By the way: in my humble opinion the theme of your blog now makes it less readable than before...I liked very much your previous design

Jamie said...

Luis,

Thanks for the feedback. This minimalist design is easier on the eyes, but the template is not flexible like the newer designs. Hopefully, Blogger will come up with more templates so that I can expand the side panel.

Luis Miguel said...

I was sure you had your reasons...anyway your work is brilliant. Don't give up!

Jamie said...

Thanks Luis!

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