Key SPY Support Level

SPY is nearing converging support levels and oversold stochastic levels. A low risk opportunity may present itself near the 50 day moving average.

Take note that the volume pattern is showing distribution.

APOL Offers a Low Risk Setup

APOL has a weird, volatile pattern, but still offers a low risk setup off a breakout-pullback.

An entry here at $71, with a stop under the moving average at $69.60 and a target at $74, offers a 2:1 reward to risk ratio.

CPLA, another education stock, has a similar setup.

Trade Update

Trade Update that I sent subscribers:

I took profits and exited half my BIDU short at $380 (average entry $402.44).

I was stopped out of ENER long position at $12.40 for a small loss.

I took profits on the remaining shares of AIG long position at $46. One of my best trades in quite some time.

I am still holding JAZZ long. AMZN and BIDU partial position short. Both charts are doing well, while JAZZ is still holding support.

Near the open I entered two inverse ETFs I mentioned last night in "shorts near entry"- SKF ($24.80) and SRS (9.55). I also entered STEC at I am kicking myself for not also adding DTO and short setup STEC--the stock I charted last night. I may add on a pullback.

Paul
www.themarketspeculator.blogspot.com

Low Risk AMZN Short

AMZN has been a great "extremes" trade (stochastics 90+ and extended price) for the past few months, both as a long and short. The stock is again extended, and offers a low risk short opportunity.

Entry here with a tight stop offers a favorable a reward to risk ratio. Allow only for a small loss or big gain using a tight stop and target at least 2 times the stop.

I am looking to enter ACI

Coal, and ACI, have been on fire of late. It's tough to find a good entry, so I may just enter on today's break of a bull-flag pullback.

AIG and the Breakout-Pullback Setup

Back on September 9th, when I posted about entering AIG, it has pulled back post breakout and showed a great accumulation pattern.

Since then the stock has catapulted back up towards the recent highs. I entered at $37, took a partial exit and am still holding a positon near $52.

The key features of the breakout pullback setup include:

1. Price breakout over resistance
2. Breakout on strong volume
3. An orderly pullback, with small price bars and decreasing volume
4. Volume pattern should show accumulation

CPLA Short Setup

CPLA is showing a classic breakdown-pullback setup. The stock broke down below teh 50 day moving average with strong price bears, and now is in the midst of an orderly pullback to resistance.

WYNN Bearish Engulfing Pattern on High Volume

AIG is a Great Low Risk Setup

AIG's volume pattern shows that it is under accumulation. This pullback offers a low risk setup. If entered around $37, with a stop under the 20 day moving average at $34.50 and target near the recent high at $50, we are looking at a 6:1 reward ratio.

If you find enough trades like this, you only need to be correct 1 out of every 5 trades to make decent profits!

Recent Trades: FUQI, DZZ, SPY, AMZN

I made the following trades today, which were sent to subscribers intra-day:

Shorts: FUQI, SPY, long DZZ (GLD short)

Long Exit: AMZN (entry at $78, exit at $81.10)

I'll detail the setups tonight or tomorrow.

Low Risk Oil Setup

Game Plan and Free Trade Report

Here is my game plan for the rest of the week and free trade report. Watch for the key SPY support levels. A continuation of the down move would setup some nice "oversold bounce" trades.

http://docs.google.com/Doc?id=d5z8q8w_1296ffhsmdfn

September 2, 2009

Note: I will not have access to a computer Thursday and Friday while on vacation, so there will be no Reports or intra-day notes for those two days. The next report will be for the first trading day next week.

Market Notes:

Today's welcome continuation down move (for those of us net short) broke through last week's support zone and sets up a possible move to the next support zone at $98.

If looking to add short positions, look for a weak bounce to former support. If looking to get long, wait until the $98 support zone is reached. This would setup a nice oversold bounce trade, with stochastics reaching oversold conditions.

Trade Tracker:

I am still holding all of my short positions but LMT, though using profit taking strategies to lock in profits and still benefit from a possible down trend.

I took partial profits in AAPL and VPRT. I am still holding SNDA and POT, which are now partial positions after profit taking.

I exited LMT. It has not been cooperating. The fact that it has not participated in the market down move, even with a nice short setup is what got me to give up on the trade.

I was stopped out of my SSO and SPY long partial positions at my entry levels. Profits had been taken earlier at the top of the trading range (see past reports). I am happy with this SPY trade as it allowed me to make some profits while waiting for my short positions to work.

Game Plan:

Keep and eye on index and focus list stocks. Shorts can be added on a weak bounce. Longs can be added on weakness, when SPY reaches support.

If the market continues to drop, keep the "oversold bounce" and "rubber band" setup handy. Look for stochastics that reach below 10, price moving far from resistance and big drops to support.

Keep an eye on key support and resistance levels, along with stochastics. This should make for some easy, slam dunk trades.

Trading Strategy:

While I don't have my full setup, I will have my iphone and will monitor the index ETFs and core focus list stocks. This is a good strategy when away from your usual trading setup or on vacation. SSO and SDS will be the main trading vehicles, with focus list stocks as possibilities.

My Current Postion: AAPL Short

Last week I posted about APPL showing signs of pulling back, but still being a tough read. As Report members know, I decided to short on the once it made a thrust to $170. Overbought conditions, distance from the 50 day moving average and a negative divergence in RSI made it a decent counter trend trade.

AAPL has now hit the first target. I have taken partial profits and moved my stop up to entry level. This effectively locks in a profit and let's the rest "ride".