Sunday, September 12, 2010

Technical Picture - Moderate Gains

The markets spent much of the week digesting the prior week's big move. We ended the week with modest gains after some backing and filling.

Friday's leadership was provided by Oil Services with drillers pacing the way (RIG, DO, ATW...) Some refiners also moved higher (FTO). Watch for this sector to move into its base for a retest of the August highs in the coming days.

Biotechs and healthcare also saw strength on Friday. Testing August highs - needs to consolidate before breaking out.

Financials holding up well.

Semis are a drag on the NASDAQ and the markets in general. Need to see something positive price action in this group soon.

Best trade on Friday was RIG breakout. RIG was HCPG pick which generated three trades for me. The first on Thursday was a target trade to the daily spot following a bullish flag pattern. The second was the planned BO at the daily spot $56.00. The third was a short on the third test of the round $ level $60.00 on 1 minute chart.

CMG flagging on the daily (thanks to Trader Rick for spotting this one). Also flagging are TCK, BVF, BWLD.


James said...

Hey Jamie,

What timezone do you trade in? ( PST / EST?)

Also, I believed you've answered this one before not sure, but how many trades do you average per day?


Banenga said...

Take A look at acas. Printing a tight consolidation below major resistance

Jamie said...

Hey James,

I'm in the EST time zone.

I'm averaging about 5 trades per day these days.

Jamie said...


ACAS basing at $5.90 resistance. I suspect it will do some backing and filling prior to BO.