Sunday, March 20, 2011

Friday: The Bears are back

Friday, world indices and futures were up nicely in pre-market. When the G7 announced they agreed to intervene to weaken the yen, markets & futures spiked. The result was a big gap up that got shorted and the markets grinded lower all day long. This gives us a rather bearish scenario for the days to come as depicted on the SPY-chart below. We'll have to see if the 100MA-support holds for the S&P.

The QQQQ's look even worse, been rejected by the 100MA for 3 days in a row:

4 daytrades Friday, all winners, ending the week on a positive note.

First one, HUM (mentioned in the HCPG-newsletter several times) shot up at the open on high volume, taking out the 65-resistance level. Volume faded quickly and I took partial profit under 66. I got stopped out on the remaining shares. I kept HUM on the watchlist because it seemed to base under the 66-level. However, a breakout never came. Below the HUM 2m-chart:

The second trade was one of Stewie's recommendations. We went short CSIQ at 11.08 and I took partial profit on the LOD (10.86), the remaining shares got stopped out near breakeven.

Third daytrade was another long, LO. Ideal entry would have been 82 but I wasn't monitoring the stock at that time, sadly enough. The climb from 82 to 88 was enormous. The stock then retraced to base at the R2-pivot and formed a round bottom. I got in at the break (entry: 85.63) and sold some at the first spike up on rather low volume. I sold some more just under 87 and the R3-pivot and raised my SL aggressively. Stopped out at 86.39. 5m-chart:
If I had followed up LO better, I would have noticed the nice base @85.84 which was a great opportunity for a quick buck in the last half hour of trading!

The last trade of the day was another one from Stewie. He went short OAS near the break of LOD (low of day) @30.30. The 30-level held up as support for about 10 minutes and then broke. The stock fell another 30-40 cent, I scaled out, average was 29.82 for almost 1.5% gain. Not bad since it took less than 45 minutes.

It's now Sunday and yesterday, French, British and American fighter jets and cruise missiles attacked Libyan military targets.
Other important news; Japan of course. At the Fukushima nuclear plant, workers had to release pressure by letting out radioactive steam. Also, abnormally high levels of radiation were found in milk and spinach.

So far, not the news the markets have been waiting for...

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