June 14, 2010
Market gapped up only to close it ultimately..
5 min Emini Nasdaq 100
Hi,
How is it going lately? As you know market can go into extremes easily.. Are we a little optimistic by gapping up again today?
I suspected so... Today's market action was characterized mainly by price trying to close the gap.. I did not enter as there was no clear signal from stochastics and short-term MACD.. You can see that price closed the gap nicely..
Author Michael Taylor : 5:45 PM | comments (0) | trackbacks (0)
June 11, 2010
$460 profits with 2 long trades ->market pull back
5 min Emini Nasdaq 100
Hi,
After4 days in the red, market gapped down again today only to cover up the gap immediately and beyond. I found 2 long opportunities when price pulled back to my moving averages..
1st trade,
I longed 1 contract at 1824 and exited at 1833 with only $180 profits. Notice that this entry was accompanied with stochastics cutting up the oversold line.
2nd trade,
I longed 1 contract at 1826 and exited at 1840 with is the high established in the morning session.. Notice that stochastics formed a double bottom, but short-term MACD only cut up the signal line in the second upwared swing. This gave me the signal to enter.
Total profits of $460.
Fundamental news:
Stocks are mostly on the upside in mid-morning trading on Friday, as earlier weakness on the heels of disappointing retail sales figures has been partially offset by buying interest that emerged following a strong reading on consumer sentiment.
Markets were able to stage a partial recovery as consumer sentiment saw a notable improvement in the month of June according to a report released by Reuters and the University of Michigan.
The report showed that the consumer sentiment index rose to a reading of 75.5 in June from the final reading of 73.6 in May. Economists had expected the index to show a more modest increase to a reading of about 74.5. With the increase, the index jumped to its highest level since January of 2008.
Peter Boockvar, equity strategist at Miller Tabak, said, "Consumers continue to show a stiff upper lip to the macro concerns we all obsess about."
The initial weakness came following the release of a Commerce Department report showing an unexpected decline in May retail sales, with the headline figure slipping by 1.2 percent after a revised 0.6 percent increase in April. Economists had expected retail sales to increase by 0.2 percent.
Also today, the Commerce Department released a separate report showing that business inventories increased by 0.4 percent in April following an upwardly revised 0.7 percent increase in March. Economists had expected inventories to increase by 0.5 percent compared to the 0.4 percent growth originally reported for the previous month.
Author Michael Taylor : 5:31 PM | comments (0) | trackbacks (0)
June 4, 2010
First Greece, Now Hungary, Next Meltdown??
5 min Emini Nasdaq 100
Hi,
How is it going lately? Market's extremely volatile and it is not easy to make money in this market.. We can really tell where the trend is going.. There appears to be no long term trend. Market has been climbing until late April.then all of a sudden we had the mystery of Dow dropping 10% ?? Just when we thought the markets are pleased with EU's bailout package, we have Hungary destroying it.
Market gapped down by around 40 points today, there is a weak attempt to close the gap, but failed... price then trended down very slowly.. I did not short immediately but waited until price cut down the opening price today.. this was accompanied by stochastics also cutting down the signal line.. I shorted 1 contract at 1854 and held my position all the way till the end as price did not cut up my upper trend line.. I exited only 1834 with profits $400.
Author Michael Taylor : 5:39 PM | comments (0) | trackbacks (0)
May 21, 2010
Price snapped up to close gap and beyond - $2120 profits
5 min Emini Nasdaq 100
Hi,
How is it going lately? Today's trade is countertrend, you have to be careful.. I am not recommeding this trading style for everyone but if you know what you are doing, you can make money..
Market has been falling for the past week and we all know that markets cant fall indefinitely.. same logic that price cant go up indefinitely..
We are lucky that there is a gapped today of more than 20 points..
Stochastics was at oversold region and turned up to cut the signal line.. I longed 1 contract at 1779 and another 2 more contracts at 1798 when price found support at the previous close.. I rode that uptrend all the way till 1827 where price hit the moving averages.. profit of $2120..
Author Michael Taylor : 6:17 PM | comments (0) | trackbacks (0)
May 14, 2010
Gapped down... EURO fears...
5 min Emini Nasdaq 100
Price gapped down today by a huge margin -> around 15 points.. Should we view this as a timely correction? Markets cannot keep moving up always anway... As day traders, we should be concerned about how we can capitalize on such movements.. When market gapped down and kept moving down.. I did not go in and I was unsure whether the gap will close or not..
There was divergence with my short-term MACD. notice that short-term MACD is moving up whereas price is moving down... this was another factor preventing me from shorting, I was waiting for a pull back to the Moving averages.. unfortunately, this only happened closed to the closing bell..
Fundamentals:
(RTTNews) - Stocks are down by substantial margins in mid-morning trading on Friday, as the markets have largely shrugged off continued improvements on the economic front in the U.S. as the European debt crisis remains a chief concern. The major averages are all firmly in negative territory, adding to yesterday's losses.
A short time ago, Reuters and the University of Michigan released their preliminary report on consumer sentiment in the month of May, showing that sentiment improved roughly in line with estimates compared to the previous month.
Reuters and the University of Michigan said that their consumer sentiment index rose to 73.3 in May from a final reading of 72.2 in April. Economists had been expecting the consumer sentiment index to increase to a reading of 73.5.
In other economic news released recently, the Commerce Department reported that business inventories increased by 0.4 percent in March following a 0.5 percent increase in February. The increase in inventories came in line with economist estimates.
Before the opening bell, the Commerce Department released a separate report showing that retail sales edged up by 0.4 percent in April following an upwardly revised 2.1 percent increase in March. Economists had expected retail sales to increase by 0.5 percent compared to the 1.6 percent growth originally reported for the previous month.
Author Michael Taylor : 6:23 PM | comments (0) | trackbacks (0)
May 12, 2010
Market gapped up, strong earnings results --> gapped not closed.
5 min Emini Nasdaq 100
Hi,
How is it going lately?
Market gapped up today and with an onslaught of good market earnings results, basically, I did not expect the gap to close anytime soon... I was looking for a chance to go long. When price pulled back to the moving averages, I longed 1 contract when stochastics cut back up from oversold at 1959. I exited my position at 1966 when price hit the high established earlier, with profits of $140..
Author Michael Taylor : 6:52 PM | comments (0) | trackbacks (0)
March 23, 2010
Market reaching new highs. Can we rocket all the way up?
5 min Emini Nasdaq 100
Hi,
How is it going lately? Remember the old say " the higher you fly the harder you fall" ? Well, we are in that situation in the markets right now, we have an exuberance where price keeps going up.. There is bound to be a sharp correction sonner or later.. However, we should play along with the market and only go long for now..
I managed to find a long singal when price dropped down towards the moving averages and bounced back.. this was accompanied by stochastics cutting up the oversold line and short-term MACD cutting up.. I longed 1 contract at 1942 and exited at 1950 with profits of $160.
Author Michael Taylor : 6:41 PM | comments (0) | trackbacks (0)