Bullish: AXP up 5.25%, TXN up 5.3%, DD up 1.3%, BMY up 3.4%, LXK up 1.75%, BTU up 9.9%, STLD up 8.4%, AKS up 3.7%, NUE up 4.1%, X up 9%
Bearish: VZ down 3.85%, AMGN down 1.75%, DAL down 3.22%, EMC down 2.65%, VLO down 2.5%
Steel stocks and Coal stocks look like they will be on the move with bullish gaps this morning. The overall earnings balance tips in favor of the Bulls for the first time in a number of days. As a result, pre-market futures are up slightly.
Here is a chart of the Dow:
(click on image to enlarge)
(click on image to enlarge)
Here is a chart of the SPX:
(click on image to enlarge)
(click on image to enlarge)
The Dow still has to get through 8,250 to turn the swing. A close above 8,250 would confirm the short term reversal. The SPX would get interesting for a bullish play on a move above 840, and would confirm a short term reversal on a close above 850.
The news keeps coming in hot and heavy, so another day, another battle. This Earnings Season has seen a much more prolonged struggle as the Bulls desperately hope for something they can hook their horns in to and push. We'll see if they get their wish today.....
Good Morning Dwight/Hi All,
ReplyDeleteI've got two days now that I can "day-trade", but I have no clue how you guys enter/exit?
I can trade vericle spreads ok, but I can "hold the snapshot" & analyse the trade until I'm satisfied.
You guys must be making decisions on the fly, left & right. No nimble here.
Any suggestions i.e. when to "zoom in" to 5m or out to 30m chatrs? I am studying daily, the candlestick pattern.
Scott L of Nash-Vegas (yesterday was a net "minus day". :-(
Scott,
ReplyDeleteYou may want to paper trade a little more before you try swing trading. I've been following Dwight for almost a year know and I'm just starting to get the charts. Maybe I'm a slow learner, but in this market it's tough for to swing trade. Give it time and don't get too excited because EMOTIONS will kill you in this game. IMO
Scott - I agree with Gary's recommendations. I have also been following Dwight for about a year with lots to learn.
ReplyDeleteAnother recommendation is to consider directional Calls or Puts, not both (spreads). You can be more nimble and avoid some commissions along the way. Again paper trade this strategy first.
Yea, nothing but paper trading now. I'm no where near confident in possiblity of "real$" trading.
ReplyDeleteAnd I sure HATE the commissions!!!! They kill marginally profitable trades.
I have no skill/confidence in calls/puts, because it seems "you have to be right (directionally) & right NOW". Whereas spreads... eh... they get there.
I do like Dwight's paraphrasing comment; I study to be a chartist AND I want the best bag-for-the-buck, calls/puts. Nice!
I aspire to be a trader like you guys.
OK patience.... Thank You!
Scott L
Scott-you got tremendous advice. If you can, print out these comments from Gary, Troy and Christina. Look at these comments when you get a little "frazzled" and it will help clear things for you. I have done it and it helps me tremendously.
ReplyDeleteThink of commissions as the vehicle to profit!! Yes, we have to pay commissions and taxes, but if we are making $, so be it.
I am thankful to have this great forum! Thank you Dwight!
Do you have a trading journal?
Happy Trading,
Margo
Christina - Well said, you are the best a summarizing information and making it understandable.
ReplyDeleteScott - I will email you a document that describes bear and bull flag patterns. This is one strategy that I like for directional calls or puts.
If you want to look at an idea for trading the ES S&P mini futures... this website is interesting.
ReplyDeletehttp://gforcetraders.com/amember/go.php?r=389&i=l0
Yes, I keep a detailed journal!
ReplyDeleteAnd I WILL print this out as soon as I can make my printer print red--duh! (Huh.... No Red, No Losses, hmmm..?
Thank you Dwight/Everyone. Can't do it w/o you! Thx.
Scott L
Great comments everyone! I agree with all of you. One piece of advice that I want to give Scott is to spend a tremendous amount of time watching charts. Do this, and you'll get a great feeling for the market and how things move. I've been following Dwight for about half a year now and I am also just starting to get it. And please be patient, this isn't a 'get quick rich scheme' as many make it out to be. It's the complete opposite. Also, losses are your best friend. Although it doesn't seem like it at the time, you can't learn any better than looking back on a trade that you lost and realize what you did wrong. Personally, I've gotten almost to the point where a loss means as much to me as a gain.
ReplyDeleteAs for trades I'm currently in, I entered CAM early yesterday with the break of the 23.25 area and I plan on adding soon. Target is the 26 - 27.50 area. Yeah, I'm holding overnight, but I'm keeping a close eye on it.
Joe
Hi Troy,
ReplyDeleteIf you do not mind would you also email me the document that describes bear and bull flag patterns?
ifedoruk@shaw.ca
I have been following Dwight since July 2008, and lately this blog is the first thing that I tune into every morning. I have posted only a few times to this blog (mainly because it takes me a long time to draft anything, and even longer to decide to send it). I am trying to make trading my main source of income, but so far I can not even decide on my trading rules. I am leaning towards bearish long puts, but I have been trading almost any options (calls, puts, spreads, diagonals, covered calls, naked puts, iron condors).
I admire those of you who contribute regularly, you seem to be getting Dwight's style, and seems to me some of you (alphabetically: Chic, Christina, Claudia, Denise, Francis, Gary, Joe, Ken, Laurie, Margo, Troy) are making good $ trading. Is anyone here making enough real $, that actually pays all the monthly bills?
Ilona