Tuesday, March 20, 2012

Recap and Trading Plan for Wednesday, 3/21

Recap - 
Normal day, some winners, some consolidators, and some stops hit.
I would like to point something out, because I have a feeling that the next leg down may surprise many... these pictures are courtesy of @vcutrader:
As we can see from these charts, the party is either nearing an end or has one more leg up before it consolidates. I'm not sure what has been going on with the market, whether it is pure manipulation, or the market is being propped up to allow the big guys to take some money out, time will tell...

But what I do know is this: we are above pre 2008 levels. Yet GDP has stalled, personal income has stalled,  the debt has increased to over 100% of GDP, unemployment remains in the upper 8's and lower 9's, we are only creating 200k jobs per month (we'd need to do double that for the next five years to get unemployment back down to 6%), and Europe hasn't gotten any better, it's actually gotten much worse.

The only substantial reason I can see for this market rallying is that it doesn't look like Obama stands a shot at re-election (going by previous presidents indicators, who have been re-elected).

Do with that info what you will, on to tomorrow!!!

 Trading Plan for Wednesday, 3/21 -

  • QCOM - Nice consolidation day, watch for new highs or a break back below this line and play accordingly
  • GOOG - Held above this breakout point, good day to add. One can continue to add here with a tight stop.
  • PEET - Notice the red candles are on much lighter volume than the green candle, just what you want to see. Next buy/add area when clears 70 on volume
  • PANL - Keep on watch to break this triangle, play accordingly.
  • AMZN - Hell of a winner and gave two chances to buy. next buy/add area when clears 197 on volume, then the 200d
  • VZ - Next buy/add area when clears this descending trend line on solid volume
  • BAC - Holding up nicely, consolidating gains after a massive run up... looks good imo
  • NFLX - Broke out Monday, but the volume doesn't have me convinced... could be wrong though.
  • SINA - Keep an eye on this one, looks like it wants to break this trend line and back below the 50d
  • POT - Broke this descending trend line on sweet volume, watch for a good FTD (follow through day)
  • MOS - Next buy/add area when clears 59.50 (200d) on heavy volume
  • INFA - Keep on watch
  • CRM - Keep on watch, next buy/add area when clears 154.60 on heavy volume
  • GS - Clearing this next resistance level on solid volume, watch for a good FTD
  • AZO - Keep on watch from weekly watch list
  • NTAP -Nice text book breakout on awesome volume, if you can't buy these you're in the wrong biz
  • UA - Keep on watch for higher prices or a break below this support
  • CME - Trying to breakout here, keep on close watch
  • LNKD - Keep on watch to get over that 95 area, holding above the 20d
  • ALLT - Making a nice flag here after a massive breakout, add on the dips with a $1 stop
Charts - 














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