| Feb 12, 2010 |
|
Daily Insight - Feb 12, 2010 3:30pm So with the markets reversing this Friday morning's opening slide, and the fact that the indices are trading more near the daily high than the low, the sideways consolidation is seemingly on track to be the dominant chart pattern. This has a higher probability for COMPX than the SPX.X as the former is consolidating Thursday's vector above its midpoints while the latter is exhibiting an "inside" or pause day. For now, expect more of the same positioning into the close and noted is that we are currently in a stronger seasonal period because all exchanges are closed on Monday for the President's Day holiday. "Day Trader" had no trades on AMZN and will discuss his selections after the close. Swing Trading - Feb 12, 2010 3:30pm "Swing Trader" has no trades for the day. After 4:00pm - Feb 12, 2010 Broad market index SPX.X has staged an "inside day" and this pausing action allows for the midpoints to smooth out. That is, instead of the midpoints accelerating its decline, it is leveling off and that is why we are seeing a change from a defined downtrend to a sideways consolidation. Shown below is how a break of Thursday's high or low should dictate the next immediate direction.
Tech and bio-tech index COMPX is seen below "consolidating at the highs" of Thursday's rise and as it is also sitting above its midpoints, a breach of Friday's high will allow the index to reach the 2200.00 horizontal trendline.
"Day Trader" will once again buy AMZN at Thursday's high or higher as long as it opens under this price as well as sell short MSFT at Friday's low or lower with any opening above this setup requirement. Illustrated below is how AMZN is still in position to stage a Day-1 breakout vector while MSFT is ready to make a Day-1 breakdown spike.
Trade Summary - Feb 2, 2010 No trades Week's Recap No trades |
