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mrnate22
Registered: Nov 2007
Posts: 194 |
08-05-12 06:57 PM
1. SNP 500 had a good up day on Friday and is on top of the BB and if it can stay there for a few days, we can be on a trending market again. It's above all the MA and looking good..
2. Russell 2000 is a bit lagging cause it's in between the 20MA and 50MA but ok so far.
3. The Financials are also a bit lagging but it has a resistance at 15. A break above that with a confirmation would it be very good for the bulls.
4. Oil Sector are staying slightly above the 200MA and if it can get away from there, it should continue higher.
5. Semis has also a major resistance at 33. A successful break above that and it will look great.
6. Bonds are still in a decent trend.. we need it to break below 50MA and that would be awesome for the bulls
As you can see, there's plenty of reasons why the market could go higher. The biggest challenge for ruining the bulls party are the commodities. They are way below the 200 MA. Also the bonds needs to start breaking down.
In conclusion, the market is looking good and a little consolidation would be very good for all of us..
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mrnate22
Registered: Nov 2007
Posts: 194 |
08-06-12 10:10 PM
Aug. 7, 2012
1. SNP 500 - Like what I said yesterday, it would be good for it to consolidate and today was a good start.
2. Russell 2000 - I like that it's above all the MA now. a break of 80 would be good for the bulls
3. Financials - I said yesterday that it had a resistance of 15 and it hit that resistance today and came back down. that's ok.. a bit more consolidation here and it should break 15 soon.
4. Same for the Oil sector.. it just needs to relax or even pull back a little bit..
5. Semis - Again I said 33 was the resistance and it hit it today and came back down.. That's fine as long as it doesn't go down too much in the next few days.
6. The commodities were up today so that's good.. Still way below the MA but hopefully, it will catch up. Transports still stuck in between the MA.
7. Bonds are still hugging the 50 MA above which is a concern.. Hopefully, it can break that 50 MA so it will give bulls confidence.
In conclusion, I am definitely bullish but we are overbought so we need more consolidation and even a slight pullback would be great.
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mrnate22
Registered: Nov 2007
Posts: 194 |
08-07-12 11:49 PM
Aug. 8, 2012
1. SNP 500- This market doesn't know how to relax and keeps going up.. We are in so overbought now that a pullback is necessary or there won't be much opportunities. Good if you're a swing trader though.
2. Russell 2000 - it broke 80 today but closed below it but that's ok.. Just needs to rest..
3. Finanacials - same as Russell 2000.. broke 15 the closed below. that's alright.
4. Oil Sector - Again, in overbought position and needs to rest.
5. Semis - Broke 33 but did not close below it.. Even better..
6. Commodities were also up which is nice to see..
As you can see, the theme is the market is overbought and needs to digest this very rapid move up.. Tomorrow is time to relax and not be aggressive to buy.
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mrnate22
Registered: Nov 2007
Posts: 194 |
08-08-12 03:36 AM
In fact, not only should we not be aggressive to buy, my strategy for tomorrow is to short stocks that are over extended.
You have to know what strategy to use in different market conditions..
For example.. Right now, the market is overbought so you don't want to buy stocks but either wait till the market consolidates or short stocks instead..
Remember, this is a day trade only..
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