Emini intraday update

My VST signal is still on a buy. I am still partly long, after closing 60% of the SPY position. When and if the trailing stop 2% hits, I will still be profitable on that position taking my entry into consideration.

At this hour, I wanted to post an intraday Emini futures update. There is a negative divergence of the price with the RSI (14) on the /ES hourly. I noticed this divergence early on, but the divergence is not complete until the hourly bar is complete. I am posting this now as we are very close to finishing the hour. What this means is we may have reached a VVST short term top. After consolidation, we may go up or down. My signal will determine my next entry. If VST signal continues to be on buy, my current position should be good. If VST signal is sell, I will open a short sell VST SPY position. I will post it on my trading blog. The divergence on the chart below is valid as long as the trendlines hold.

Euro update - Swing sell

Euro is out of the trendline that held it for the last few months. The implications of this trendline breakout are very negative. It means that the downward spiral from here will accelerate. Sell all rallies, same with AMZN (check my weekend post for the chart).

I also got a swing sell for the market. You can use any price appreciation today to sell SPY short with a 5% stop from here. I suggest you do that after the FOMC meeting update. I know we are not expecting any QE but who take risk even on a 1% chance? If FOMC statement is neutral, there will be a dip followed by a rally. I expect today to close in positive. Either way you can use any strength to sell. I don't think 0.5% on a ST signal matters, safety first!

Not so FAST!

 It has been a while since I posted individual chart names. I found some good ones to post today. This should kick off the week for you. I have no idea of the fundamentals of these companies, that is your homework before trading/ investing in them. I will take a look at the sector, analyst estimates, 1 year EPS performance, trading volume before trading. I cannot guarantee I will trade all these charts, these are eye candies. If things line up well, I may trade them. I will definitely post it on Stock fund blog. 

I start with Fastenal Inc. today. Use the trendline on FAST to buy the dip with a 5% stop.

Next is symantec. SYMC has possibly double bottomed, buy it right here with a stop below the lateral trendline. Go short below it.

Below is the HOLX daily chart. Enter the position on a breakout, up or down.

Adobe recently satisfied Steve Jobs' ghost by killing mobile flash. Check ADBE chart. ADBE has been trending up after a good consolidation. Buy on a dip with a 5% stop.

We return to our good old friend, AMZN. AMZN is at the lower trendline of the megaphone pattern. I have a bad view of the fundamentals this company has. Yeah, traffic is growing and the site provides good stuff to buy. So, what? It earns 10 cents. With cash in balance and everything, if Wall Street used good criteria for buying stocks, then this should be below 50$. 

 Sell short on a trendline break but notice long term trendline support. If it breaks below that support, it should go down faster than NFLX.

Mattel Co. has been on the uptrend. With this being the holiday season, I am bullish on the name. The chart supports the theory as well. Buy 1/2 now, and buy on a trendline touch. Sell 3% below the trendline.

Sell BMC with a stop above the channel breakout. Buy if it breaks out of the channel.

BroadCom is bearish for some reason. To be honest, the tech sector is not leading this market. That is definitely not a good sign for the market. 

Sell BRCM below the lateral trendline with a 5% stop. I see a H & S on the chart, do you? If the H & S is real, then we should see BRCM test the 2009 lows.

I am bullish on CSCO. CSCO has double bottomed over the long term. Buy with a 5% stop but if it breaks below the double bottom, sell short.

I am bullish on ESRX but buy the breakout. Wait, have patience!

Here comes KLAC with a beautiful chart. Buy with a 7% stop.

I like NVDA here. Buy with a 7% stop. 

I will visit these names after 4 weeks and we will assess our performance of this basket.

Market update

Folks, 1st things 1st. It is easy to get distracted during trading/ investing. Trading and investing need 100% of you in a perfect state of mind. If you are not in tune with  the market, then your trade is a lost cause. Today morning I read a signal on my charts, I placed a short sell TNA but that didn' execute well. My VST trades are more often terminal trades, sometimes they get extended for many days though. I get in to the trade with a small expectation because of the terminal nature of the trade. When I did not get enough TNA and market was going down within 10 minutes, I felt very bad. When you want to short sell, remember you are fighting everyone else. The odds are stacked against the short sellers. Buyers don't have many rules. Short sellers can't get enough trades, then your short trades may be called..the list goes on. TDAmeritrade is turning short selling into nuisance. During peak hours, exactly when I want to place a trade and hit short sell order button, the order says "WAIT REV.." What review guys? If the short sale is not available, let them make the system to outright reject the trade. I will move on to the next thing to find within few seconds. If the order is waiting for 3 minutes to be approved, what does it mean? It means the guy on the other side can reject my order for 1001 reasons, not just because there are no available shares. It is more frustrating if you have a partial fill. I had to short sell today at a lower price again today but see not everytime you get an opportunity to fill at lower price and still win. It kind of set me off today morning but overall it was a good day. The brokerages, investment managers, nobody encourages short selling. They set weird rules to offset you from short selling. So, be ready to take such risks when you want to sell short.

I analyzed my charts and it looks like there is unfinished business on the downside. I suggest my swing traders to stay in cash. The next signal you are going to get from me is a buy, I don't know at what level. But, you stay in cash. period. Because the market gapped up multiple times and stopped you out. Fine with my system, you will get your chance. Please wait in Q.

The market is sick and 1 chart straightaway shows it. The NYA50R declined today by 22.5%. Translates to 22.5% of the NYSE stocks fell below their 50 day moving average. May be the ticker changes on individual names may be small but I told you during the weekend that market managers tend to buy stocks which are above 50 DMA, 100 DMA, 200 DMA etc. The fact that even after multiple days of rally, the market could not take all these stocks so much higher above 50 DMA to be able to be above 50 DMA on a day like this (2% sell off) speaks volumes about the vulnerability of internal structure of this market.

Look at the NYA200R. It is at 29.32. So, with a rally of several days, all the market is able to do is to keep only 29% of the stocks above 200 DMA. Yeah? That is pathetic and sick.

If today finished close to even, I was going to write we were close to a buy signal. But, not anymore. All I can say for swingers is to stay in cash. That is only because I am following my system. I have to adhere to the rules of my swing system. Buy signal comes after sell signal and so on. If I followed several untested (by me) systems, I would ask you to sell short with good stop. That is where the market is.