Stock Trading Ideas

Stock Market Update: Bulls In Control…

After the follow-through day on Monday, the market seems to be digesting those big gains from last week by resting here as volume decreases. The follow-through day marks the end of downtrend and confirms the market in uptrend. This doesn’t mean that you go out and start buying stocks randomly. It’s just an indicator that its ok to test the water on the upside with small buys and if that works, you add to it. For more on follow-through day, read “How to make money in Stocks” by William O’Neil (one of my favorite book). The only sore in the eye on the daily charts of the indexes is the ever decreasing volume. I have a feeling that as we move higher and higher, fewer and fewer stocks are going to participate in this uptrend.

If you have been following the financial news lately, you might have come across the strong correlation between the US dollar and S&P 500 or the overall market. It seems like as the dollar keeps making new lows, the market is making new highs. I don’t know how long or how far that goes but its wise to keep dollar index on your radar for the next move.

Index	Close	Change	% Change	Trend
Dow Jones	10291.26	+44.29	+0.43%	UP
S&P 500	1098.51	+5.50	+0.50%	UP
Nasdaq	2166.90	+15.82	+0.74%	UP

On a trading note, I was stopped out of my Research In Motion (RIMM) short for a small loss. It looks like it undercut my stop-loss and doesn’t seem to be getting up there again. I will keep a close eye on RIMM for short again as the market moves higher. Goldman Sachs (GS) seems to be forming its right side of the head and shoulder pattern. It needs to be seen how it acts near the 50 DMA. Other shorts to keep on you radar are Potash (POT), First Solar (FSLR), Sohu (SOHU) and Shanda (SNDA).

Other than the shorts, there are some potential longs I’m keep on my watchlist are, Given Imaging (GIVN), Solera Holdings (SLH), Salesforce.com (CRM), Verisk (VRSK), Oplink Communications (OPLK), Arcsight (ARST) and Bucyrus (BUCY)

Trading Addicts.

Stock Market At A Glance - Inching Higher On Lower Volume

Market is trending higher on lower and lower volume after big volume breakdown below key support levels of 50 DMA. Even the news that Warren Buffet’s Berkshire Hathaway (BRK.A) will be acquiring Burlington Northern Santa Fe (BNI), the nation’s second-largest railroad for a record $34 billion could not bring cheers to the market.

Index	Close	Change	% Change	Trend
Dow Jones	9771.91	-17.53	-0.18%	DOWN
S&P 500	1045.41	+2.53	+0.24%	DOWN
Nasdaq	2057.32	+8.12	+0.40%	DOWN

Gold broke to new highs on the news that Indian central bank is going to buy 200 metric tons of bullion. Gold ended the day higher by 30.90 (2.9%) to close at 1084.90 an ounce.

Still holding GS short from 172.25. See the chart for details:

Trading Addicts.

Stock Trade Update: Short Goldman Sachs (GS)

Updates (Monday, November 2, 2009): This trade on GS short was closed out on Friday at 172 for a 5 point gain when the alert was sent out to the subscribers. Today another email alert was sent out to short GS between 172-173 with some technical explanation as to why GS looks vulnerable on the downside. I took a position at 172.25.

Shorted Goldman Sachs (GS) yesterday at 177 with stop at 182 as it hits resistance at 50 DMA (177.50). GS broke support at 50 DMA on Wednesday on above average volume and bounced back on Thursday right to the prior support of 50 DMA on lower volume, which should now act as resistance. If GS can’t get its act together and hold on to the key support levels, the next stop should be around 150-155.

If you were a subscriber to the Intraday Alerts (absolutely free), you would have received an alert right to your inbox when the trade was executed. So go ahead and sign-up for it.

Stock Market At A Glance - Decline Continues…

Major indexes declines on much higher volume and leaders are being pounded left and right while the US dollar seems to be changing the trend here to the upside. This market is now showing major weakness signs and has either broken major support levels or is about to test one. A 10-12% correction followed by a calm flat trading on low volume would be really meaningful for the bulls but you never know what’s in store. This would provide some time for the new leaders to form bases. Lets see how this downtrend turns out to be…

Index	Close	Change	% Change	Trend
Dow Jones	9762.69	-119.48	-1.21%	DOWN
S&P 500	1042.63	-20.78	-1.95%	DOWN
Nasdaq	2059.61	-56.48	-2.67%	DOWN

Some of the leaders breaking down below their 50 DMA are GMCR, CISG, CFSG, PEGA, GS, EJ and the likes.

After the close, First Solar (FSLR) disappointed with their earnings release and got smacked hard falling 24.08 (16%) to close at 127.50 in after-hours trading. gets knocked out and sheds 13% (56.98) to close at 375.99 in after-hours trading.

Stock Trade Updates: Closed out short positions in GS and RIMM for nice gains. GS was closed at 172.50 (shorted at 183.29) and RIMM was closed at 61.44 (shorted at 69.15). These 2 names still present a great potential to breakdown but I would wait for them to bounce a little before pouncing again on the short side.

Trading Addicts. Follow Along With Top Traders As They Profit In Stocks, Options, Futures, And Forex Markets In Real-time.

Stock Market At A Glance - Dollar Rallies

Index	Close	Change	% Change	Trend
Dow Jones	9867.96	-104.22	-1.05%	DOWN
S&P 500	1066.95	-12.65	-1.17%	DOWN
Nasdaq	2141.85	-12.62	-0.59%	DOWN

Today’s big drop in the market came on the heels of dollar making a huge swing to the upside on big volume.

After the close, Baidu Inc (BIDU) gets knocked out and sheds 13% (56.98) to close at 375.99 in after-hours trading. Sohu.com (SOHU), another bearer of bad earnings news was slammed hard and fell 11.43 (16%) to 59.92. BIDU earnings tonight should provide some early directions to how the NASDAQ proceeds for the day.

Trading Addicts. Follow Along With Top Traders As They Profit In Stocks, Options, Futures, And Forex Markets In Real-time.

Copyright 2008. Stock Trading Ideas. All rights reserved