The monthly chart of the S&P 500 looks bullish.
Will it be sell in May and walk away? The sideways action over the past month could be consolidation before moving higher.
A break of 950 on the S&P should shoot stocks up to 1050 on the S&P rather quickly.
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Darn!! From your bullish view for a post, I may have made a mistake. I bot SRS at 19.95 on Friday for an overnight trade to sell Monday/tomorrow. SRS kept falling to 19.65. AH Friday its at 19.75. TenYear, Is there a chance on Monday that SRS will re-test or bounce up over 19.95 so I can at least break even? OR, if SRS does not get over 19.95 Monday when can I expect it too? Lower BB is at 18.83. I guess I could average down if SRS drops, but if the market follows your bullish post I'd rather not chase SRS and just get-out. WHAT WOULD DO IF YOU WERE ME? Thanks
ReplyDeleteOld fashion S&P.
DeleteNergo:
ReplyDeleteIt is likely you will get a bounce to some degree so you can bail on SRS.
The action late Friday was the result of computer short covering. The indices failed to break daily/weekly/monthly support so all of the computer progams kicked into overdrive.
Day-to-day there will still be short trades available but I'm sensing that deflation is over, money is working its way into the system, and the dollar will remain weak.
Who the heck knows? We will probably be down this entire week now....LOL. One thing is for sure, this market is choppy.
Its great to be able to bounce my concerns off someone. It eases insecurities and gives potential direction. You and Zee are great in following up questions. Thanks, TenYear.
ReplyDeleteInteresting about those 'computer short coverings' because indices 'failed to break supports' in your post. Would you say you learn info like this from your years of experience in trading OR is there a book or two you read? The point here, I'd like to learn more. Is there a book you recommend? Or, it takes raw experience only?
Nergo;
ReplyDeleteNothing can beat experience when it comes to trading. You have to find your own style that fits you. Everyone is different.
As far as books go: I don't really have any good ones on trading. Generally when I try to follow another trading style or reco, it doesn't work for me.
I came across Z's style on the blogs a couple of years ago. He is the only one I've seen online that has a similar style as me. The only difference is that he regularly shorts individual stocks-- something I rarely do. I might short an individual stock like once or twice a year at the most. I hate shorting stocks because I never know where to put a stop. The GOOG short last week was an easy set up because the stop was easy.
When it comes to trading, if I see a stop price, I can trade it. If all the other buy indications appear with it, I know I have a great opportunity to profit.
I'm watching the following for entry's, short sell signals, or market signals:
ReplyDeleteBAC
FIG
MGM
USO
UNG
SCO
IYR
UUP
GLD
SPY
FXP
BNI