Monday, August 02, 2010

Technical Picture - Gap Extension to Multi-Week High

An impressive start to the month with a gap open and extension on the strength of overseas markets. A broad based rally with commodities providing leadership - Coal, steel, Oil Services all added 4+% on the session. Ag/chem continued higher as well, gapping above the 200 SMA. The sector is overbought but propels higher on the supply/demand issues priced into crop futures. Another bad day for the $USD vs, $Euro. As depicted on the $USD down below, price is fast approaching the 200 SMA. A technical bounce is due so it's important to keep an eye on it and it's effect on commodity related plays. Canadian markets were closed due to holiday.

Day Trades

Ambush short for AKAM which is weak since earnings last week.

MOS tested the ambush zone of the last leg up in opening trade. Wait for confirmation, enter long. Partial as price approaches resistance and let the balance run.

BTU was a HCPG pick from last night's newsletter. Looks like a box play and extends 100% before lunch. Sweet!

Floored, a film about floor traders is available for viewing at TraderTV blog.


RivTrader said...

Hi Jamie,

I'm a long time fan of your blog and I learn part of my trading by reading your great blog. Just a quick question from you, what is an "ambush" trade means, or can you elaborate further please. Sorry for asking this from you because I only learn my trading by myself. Thank you.

Jamie said...


I just published a post on the ambush trade above. I think it will answer your question.