|
The contents on this page are a small sample of StockTradersHQ's member resources (FREE Trial!)
1.
Our staff of professional technical traders analyze 1,000's of potential stocks every day to provide you with a list of stock picks with the greatest potential for explosive gains.
2. These stockpicks are traded with our real-time portfolio. Email alerts are sent for every entry and exit. Through the member-only website, you will have our support every step of the way.
3. Our subscription service provides all the resources, stock picks and tools an investor needs to make very profitable, consistent trades while maximizing gains and minimizing losses.
SEE OUR TOP PICKS FOR 2006...
|
|
Wednesday, March 09, 2005
Market Recap
A big blow to the charts and market sentiment today as the both the Dow and Nasdaq fell below key short-term support levels on above average volume. Today's market action had both bulls and bears on the edge of their seats as the markets first dipped, then recovered, and then sold off pretty hard into the closing bell. When it was all said and done, the Nasdaq was lower by –12 points, the Dow finished with triple digit losses of –107 points, and the S&P was lower by –12 points. Initially it looked like we were going to get the bounce off of the double top support line on the Dow but the selling pressure, coupled with oil moving above $55 a barrel, was just too much and the Dow fell all the way down to support at 10800. The Nasdaq continues to be the weakest of the 3 major indexes. Today, it closed back below all of the key short-term moving averages. I have said before that it is going to be very difficult for the Dow to sustain new highs without the participation of the Nasdaq. Despite the triple digit loss on the Dow, the chart is still technically in ok shape. However, today's action will certainly delay a breakout from occurring. My fear now is that the lack of commitment from the Nasdaq will eventually drag the Dow down with it. We need a bounce in the Nasdaq soon or this scenario could very well play out. All eyes will be on Intel tomorrow, after the bell as they give their mid-quarter update. You can be certain that Intel's report will have a dramatic effect on the success or failure of the Nasdaq for the short term. Our portfolio is not tech heavy right now and will remain this way until we get a commitment from the Nasdaq.
The housing stocks that I bought on Monday took a decent hit today as expected after learning in pre-market that the 10 year bond yield had spiked up. All of the homebuilder stocks gapped down on this news. When a stock gaps down, we have to make a choice. I chose not to sell the weakness because the charts are still in a strong uptrend, despite today's selling. The next choice to make is do we sell into strength or do we hold? This question will be answered when we evaluate the strength of the bounce, if and when one occurs. If a bounce does not occur, I will sell these stocks on a close below their respective 50MA's.
Looking Ahead
It goes without saying that not much is working in this market right now. Gains on stocks that do move higher have only been holding for a couple of days at most. Breakouts are not holding and pullbacks are pulling back even further than expected. The bottom line is that it is a very difficult market to trade in. Until the market improves, my plan is to only buy stocks on pullbacks to longer-term trend lines. The 20EMA, 33EMA and 50MA will be the averages of choice. The heavier the down volume and the further above the trend line the stock is, the further we will let the stock pullback before we buy. This is going to sound a bit strange but the safest chart to buy right now is a chart that looks like it will be a good short if it drops slightly. I also plan to rotate out some of the higher priced stocks on the bulletin and look for less expensive stocks with pullback setups. The reason for this is because the lower priced stocks will bounce quicker on a percentage basis, giving us a chance to make a quick gain on the bounce. The higher priced stocks have been taking 2 steps forward and 3 steps back so they have been frustrating to hold, on top of the fact that they move slower. Remember, with reward comes risk. The lower priced stocks will also fall quicker on a percentage basis, so we must use tight stops just below the support line that we are using to determine our buy point.
I also plan to start trading a few of the OTC stocks. I sent a pre-alert today on TIDE indicating that I had a limit order in place. It did not fill but more importantly it allowed everyone to place a limit order at the same price. Any OTC stocks that I plan to buy, I will try and send a pre-alert to ensure that everyone knows the price I am trying to buy at. OTC stocks can be heavily manipulated and volatile so I want everyone to be able to get your orders in place ahead of time. I do not suggest buying OTC stocks after my official buy alert has been sent, unless you can get the stock within 1 or 2 cents of my entry. It is better to move on to the next stock rather than chase a move up. On the sell side, I will also try and use pre-alerts. If a stock that we own is moving, I will indicate the price that I intend to it sell at. You can then choose to sell with me, before me, or hang on for more upside. Exit on OTC's is more important than entry. Try to always sell into strength. It may cost you a few percentage points but it would not cost you as much as it would trying to chase the bid down when the stock is falling.
For New Members
For all of the new members with us, please make sure to read the link “How to use Bulletin” at the bottom of the Bulletin page on the website. It is critical that you know how to use this trading tool before trying to trade the stocks mentioned. The effectiveness of your trades will diminish if you do not completely understand how the information is presented.
Please Tell A Friend
Please tell a friend about our service. As always, thank you for your support past, present and future!
Earnings Calendar
Do not forget to check your short-term holdings and know when those companies are reporting earnings. Holding a stock through earnings is risky and I do not recommend it. You can always buy the stock back after the dust settles.
http://www.fulldisclosure.com/highlight.asp?client...
Stockcharts Listing
Please vote for us once a day at stockcharts.com. http://stockcharts.com/def/servlet/Favorites.CServ...
Thank you all for voting. |
|
|
|
|
|
|
