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What Is Your Assessment With The Day Stock Trading?
The following report is made to give you the chance to see for yourselves how you fair in the day stock trading. Actually there is not much to say except to repeat the last couple of reports. We are just coasting and drifting. The Dow30 made a move in the last 30 minutes from essentially a negative day to no change to a small buy program.
Earnings season is not giving us anything super exciting to bid stocks up nor are there any bigger disasters than what was expected. As earnings season wraps up by early next week, people will be looking at each other wondering who is going to sell first. The selling would likely be a slow gradual sell off at first and if that continues the selling could get more aggressive.
If we see a big day up, maybe 3-4% in a single up day, this would be very bullish, especially if we are drifting sideway or slightly downward. Often those days signal a new leg up.
Let me reiterate that there is no substantial change in the T2108 chart by todays action and this strongly supports the idea of a downtrend in the coming weeks that may last into the summer. It is important therefore to note that we are still on a downtrend that is likely to resume on this peak here that we are in and is very possible to take us to the mid 700s on the S and P 500 (currently 850) and the Dow30 as low as 7300. It is evident that NASDAQ is much stronger of the three indices so technology stocks are likely to continue to outperform as a sector. Here are some evidences to take note of to either support or disprove forecast and take different strategies when necessary:
* The Oil index shows it continues to make lower lows with a gradual downtrend. No change today, 48.66.
* Swing Trades: STP, Suntech Power. This sector should drift downward, especially if market heads down as well.
* CSIQ, Canadian Solar. This is drifting downward. This type of idea, shorting a small position at open is ok.
* SCON, SuperConductor. For aggressive traders; this should gradually break down nicely, high profit potential, high risk.
With the above scenario, you just have to keep steady, calm, decisive, but surely aggressive. Have no fear and no greed. Keep looking at what to be doing next in a calm manner. Do not focus on the past or beat yourself up what you did or did not do or what you should have done. Just keep on playing the next shot, which in this business, could be just sitting on the sideline.
If at any rate you are still uncomfortable shorting stocks, which most people are, try to learn this technique, it will be a useful tool in the coming years. Do not you dare trade unless the setup is there for you, and then use the charts to tell you when the odds are heavily in your favor. Do not force anything to work for you, let the setups develop and then take advantage of that.
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