It looks to me a triangle is forming on SPY. Could it be setting up for a breakout?
I started talking about my trading plan last week and in particular on Sunday. Today I started executing the trading plan.
I mentioned that I would re-enter my long position in UDN off of the trendline. I added a long position today in UDN at $27.75. I currently have my stop set at $27.55.
I added [...]
In terms of the big picture, today was a non-event even with the almost 2% move on SPY. We’re still below the “Lehman gap.” I’m still following my plan from last night.
I did add RIMM and DV as long positions today.
I added a position in RIMM at $66.7. I actually had a limit order set [...]
It should not be a surprise that I am starting out this week by looking at my three favorite indicators.
The weekly chart of the TED spread shows the spike 2 weeks ago and a slight down tick last week. The spread between 90-day LIBOR and 90-day T-Bills continues to be in a normal range.
The next [...]
If you pull up one of my recent QQQQ charts, you will see that I mentioned that there was resistance at about $43.50. We hit that and the market has pulled back. I also mentioned that SPY would hit resistance at the “Lehman gap” and thus far this gap has held as resistance. This is [...]
For traders with a directional bias, today was quite a FOMC day. We had mostly a slow day leading up to the Fed announcement as one might expect, followed up by a melt up of stocks after the announcement. But, unlike other FOMC days where the market really took off, the market seemed to kind [...]
With the market churning below resistance in the $107-108 range, I continued to short extremely overbought stocks today.
Yesterday I mentioned shorting PSDV and that stock behaved nicely today going down 7% from yesterday’s close. PSDV was a pure “RSI 93 trade.”
Today I shorted FFBC at $12.40 and MPG at $2.60. Both of these stocks are [...]
One thing I have noticed is that many of my RSI 93 candidates are biotech stocks. Today I shorted PSDV at an average price of $5.86. I think it actually makes sense that biotech stocks are often the stocks that go parabolic. First, these stocks generally have a good fundamental story behind them. With drugs, [...]
Tonight’s post will be text only. The trading plan remains unchanged. I’m following my three indicators which include the dollar (via UDN), the Ted spread (3 month LIBOR less three month T-Bills) and LQD (high quality bonds).
Since March, we have seen a weakened dollar, a declining TED spread and a bull run in bonds. My [...]
I am currently on vacation. I do expect to do an abbreviated version of my Sunday Night Coffee post tonight. It will not be posted until late tonight.