- For investors: $TWTR faces major upside resistance. Don't touch it unless it fits into your trading plan or unless you see some upside momentum because there are better investments out there.
Tuesday, June 30, 2015
Just for $TWTR fans: $TWTR surges almost 6% ($2) so that those who bought at $52 are only sitting on a 30% loss
Monday, June 29, 2015
$VIX shoots up like a bottle rocket into a resistance zone $VIX $SPX $SPY
- $VIX and the market as defined by $SPX and $SPY are negatively correlated
Trading Plan - Today's market drop reinforces why your trading plan is important $SPX $SPY $DJIA
- Your trading plan should tell you what to do not only when the market is rising, but also when it drops
- Remember that the market always goes down faster than it goes up
- Your reaction to the market should be automatic
- If you find yourself paralyzed not knowing what to do your trading is not working
- If you find yourself thinking too much about your next move then you need a new trading plan
- Here is an example of a trading plan rule:
- Identify support and resistance levels. Exit 50% of your positions if the market falls 1% below your 1st major support level. Exit the remaining 50% if it falls 1% below your 2nd support level.
- If you followed the above rules you would exit 1/2 of your positions at $201 and 1/2 at $198.
- You should also have rules to tell you when to enter the market which could be the opposite of the above or whatever rules that work for you.
- The above is just an example. Your trading plan and rules should fit your investment style and personality.
- Happy Trading!
Sunday, June 28, 2015
Saturday, June 27, 2015
$AAPL is trading sideways in a support zone
- Future cloud is flat illustrating flat trading
- $AAPL is bullish overall so this may be an opportunity to pick up some shares if it fits your trading plan
$TWTR has been inching downward, but may have support around $34
- Thick future bearish cloud implies very little upside in the near term
$BABA falls below support and the cloud and faces major resistance
- Sentiment is bearish
- Major resistance around $86.41 and $92.50
Oil is trading sideways with a future bearish cloud
- Thick future bearish cloud implies that there may not be a lot of upside in the near-term
$VIX is right at an initial resistance level with a thinning future Kumo
- 200-day EMA is the next level of resistance
- A cross of the 200-day may lead to a decline in stocks
- Investors should be watchful of their portfolios and be prepared to adjust if necessary
$VNQ reaches support zone
- That's the only compelling reason to buy if you must have real estate in your portfolio
- The overall trend for $VNQ is still bearish
$IWM reaches support zone after 3 black crows
- Although 3 black crows are a bearish candlestick patter, the overall trend for $IWM is bullish
- Aggressive Investors can treat this as a dip and scale in when price is in the support zone
- Nimble investors should wait until a bounce off support to ensure 3 black crows are not a trend reversal
Friday, June 26, 2015
Sunday, June 21, 2015
$IWM may have reached resistance at 128 and could be overbought
- Investors would wise to tighten stops in case of a pullback
- Investors waiting to jump on can target a price below 127 while keeping initial support in mind which is around 126
$XLE is at support and offers a potential counter trend trade
- This could be a potential counter trend trade with resistance at 78
- With a stop at 75.33 it has a potential 1-to-3 risk/reward ratio
Saturday, June 20, 2015
$BABA is at a support level and could bounce, but keep expectations low
There are better opportunities out there and there is strong resistant at $92.50.
$VNQ is near resistance and may be a good short opportunity
- With the Fed raising interest rates albeit gradually $VNQ is bearish
- With $VNQ near resistance the rally may be short-lived creating a shorting opportunity
- Stop loss at 79.61 results in a risk/reward ratio of 1-to-2.15
$LUV turns up and has a potential of a 1-to-3 risk/reward ratio
- Airlines are turning up and $LUV is no exception
- Price is currently at around major support at $34
- Next resistance levels are at $36 and $38
- A risk/reward ratio of 1-to-3 at the current price of $34.22 equates to a stop at $33.63 and target at $35.99
- A trailing stop can be used also
$DAL gaps up from major support to the next support/resistance level
- Traded around major support at $40.39 for 9 bars
- Gaps to $41.99 which was resistance and is now support
- Next resistance level is $43.47
- A 1-to-3 risk reward ratio exists at the current price of $41.99, stop loss at $41.49, and profit target at $43.47
- The stop is tight since $DAL is below the cloud
- A trailing stop at $0.49 can be used to ride the upward trend
Airlines may be getting ready to bounce up
Airline index is at support which seems to be strong around $217.
$UGA Weekly
