Friday, July 30, 2010

Finally an up month

I found a little bit of "free" time to write a few words today.

The good news for bulls is that SPX managed to claim this month. The bad news is that the bullish momentum seems to vanishing and DMI is about to turn red unless bulls manage to push the indexes up next week. It's good that the uptrend line (around 1093) provided support in the last two days but I want to see SPX above the resistance level around 1105 and DMI staying on green. It will be really upsetting to see indexes slipping back into the trading range. Personally, I don't care if market rallies or plunges but trading in range is killing me since I am getting whip-sawed most of the time.

Long term players should keep an eye on SMA200. A close above this value and a higher high above 1130 is going to be very bullish.

Have a nice week and remember I won't be able to write anything since I am going to be on vacation but I won't be upset seeing that some of you clicked on the adds and bought me a coffee or two :)

All the best!



  1. After monday that will be up,we'll break 1088 line and will join very soon 1050 and then 1010 or less.The second part of August will be aleady a welcome for an awful september.

  2. Don't try to anticipate market, just REACT to its moves. Guessing tops and bottoms is a losing game. Believe me, I try it many times. If you react immediately after your indicator gave you a buy or a sell signal you are going to sell or buy at a good price. You can get whip-sawed a little bit if market is trading in range, like it did happen in the last two month, but rather than that you won't lose money. If you get long or short at the wrong time and continue to stick with your stock you can lose your shirt.

    Your scenario is possible, market may go bellow 1000 but why guessing? Wait for some indicator to turn bearish (MACD for example), wait for DMI to turn red or at least a drop bellow the uptrend line. In the last two quarters market went up in the first month of earnings then plunged. It may happen again but it may not happen.

    Take care out there, use stops and remember that the first job of a good trader is NOT TO LOSE MONEY then to make some!

  3. babaro,

    Your analysis is very helpful as I am trying to learn more about the technicals. Even a hard core fundamentalist like me can see that the technicals truly matter. (even if they are self fulfilling tea leaf reading - LOL)

  4. hi azbrats, "techicals" are a reflection of the fundamentals. I do not ignore fundamentals, usually I do scan for the stocks with the best fundamentals then I trade only those that look strong technically speaking.


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