Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
Gold and Silver - The Two Horsemen - 11th Nov 19
Towards a Diverging BRIC Future - 11th Nov 19
Welcome to the Zombie-land Of Stock Market Investing - 11th Nov 19
Illiquidity & Gold And Silver In The End Game - 11th Nov 19
Key Things You Need to Know When Starting a Business - 11th Nov 19
Stock Market Cycles Peaking - 11th Nov 19
Avoid Emotional Investing in Cryptocurrency - 11th Nov 19
Australian Lithium Mines NOT Viable at Current Prices - 10th Nov 19
The 10 Highest Paying Jobs In Oil & Gas - 10th Nov 19
World's Major Gold Miners Target Copper Porphyries - 10th Nov 19
AMAZON NOVEMBER 2019 BARGAIN PRICES - WD My Book 8TB External Drive for £126 - 10th Nov 19
Gold & Silver to Head Dramatically Higher, Mirroring Palladium - 9th Nov 19
How Do YOU Know the Direction of a Market's Larger Trend? - 9th Nov 19
BEST Amazon SMART Scale To Aid Weight Loss for Christmas 2019 - 9th Nov 19
Why Every Investor Should Invest in Water - 8th Nov 19
Wait… Was That a Bullish Silver Reversal? - 8th Nov 19
Gold, Silver and Copper The 3 Metallic Amigos and the Macro Message - 8th Nov 19
Is China locking up Indonesian Nickel? - 8th Nov 19
Where is the Top for Natural Gas? - 7th Nov 19
Why Fractional Shares Don’t Make Sense - 7th Nov 19
The Fed Is Chasing Its Own Tail; It Doesn’t Care What You Think - 7th Nov 19
China’s path from World’s Factory to World Market - 7th Nov 19
Where Is That Confounded Recession? - 7th Nov 19
FREE eBook - The Investment Strategy that could change your future - 7th Nov 19
Is There a Stock Market Breakout Ahead? - 6th Nov 19
These Indicators Aren’t Putting to an Economic Resurgence - 6th Nov 19
Understanding the Different Types of Travel Insurance - 6th Nov 19
The Biggest Gold Story Of 2020 - 6th Nov 19
Best Money Saving FREE Bonfire Night Fire Works Show Sheffield 2019 - 5th Nov 19
Is the Run on the US Dollar Due to Panic or Greed? - 5th Nov 19
Reasons Why Madrid Attracts Young Professionals - 5th Nov 19
Larger Bullish Move in USD/JPY May Just Be Getting Started - 5th Nov 19
Constructive Action in Gold & Silver Stocks - 5th Nov 19
The Boring Industry That Hands +500% Gains - 5th Nov 19
Stock Market Chartology vs Fundamentals - 4th Nov 19
The Fed’s Policy Is Like Swatting Flies with Nuclear Weapons - 4th Nov 19
Stock Market Warning: US Credit Delinquencies To Skyrocket In Q4 - 4th Nov 19
Stock Market Intermediate Topping Process Continues - 4th Nov 19
Stock Market $SPY Expanded Flat, Déjà Vu All Over Again - 4th Nov 19
How To Buy Gold For $3 An Ounce - 4th Nov 19

Market Oracle FREE Newsletter

How To Buy Gold For $3 An Ounce

Three Goals For This Week

Stock-Markets / Stock Index Trading May 31, 2010 - 10:00 AM GMT

By: David_Grandey

Stock-Markets

Best Financial Markets Analysis ArticleWHAT A MONTH! We took 24 trades in the month of May with 21, or 88% of them being profitable. Meanwhile here’s how the indexes performed:

Dow — down 9%
Nasdaq — down 8%
S&P 500 — down 8%


For this week, we have 3 simple goals.

Friday’s sell off was to be expected as the market had come a long way in a short period of time. What we’ll want to see is the market either resume its advance early next week or if it stalls right here as we have multiple short term resistance levels that we are touching or near touching.

While the Nasdaq has been the top performer, the S&P 500 has found resistance at its 200-day the past two days. You can also see the RSI indicator at the top of each index chart shows the RSI having a hard time going over the 70 level ever since this correction started. Even with the big up days we’ve had it still can’t get over the red lines.

In addition to that we have the 38.2% Fibonacci level just above. And finally, you can see we are tagging, or are close to tagging multiple red resistance lines.

All of this puts us on the defensive as our number one goal this month is to extend our gains in a manner that is in tandem with the market.

A move back down to retest the recent lows would not surprise us. Should it occur we have a lot of names on the short sell watch list for just such an event. In fact there is a good possibility next week we lock down more gains on the long side and start allocating assets to the short side for trades as well as buying inverse ETFs.

Another item of concern is that the markets have not staged an accumulation day for all of May — yes, not one day this month did the markets close higher than the day before with volume heavier than the previous day. On the flip side, there were many days where the market closed lower than the previous day on volume heavier than the prior day.

Big Picture

For weeks we’ve been saying:

Make no mistake the damage done to stocks out there will not repair itself overnight and a lot of names are going to take months if at all to build all new bases. There is also a real good possibility that we will not see the April Highs again for a VERY VERY LONG TIME. Keep that in mind.

This all makes for a range bound trade and swing trading long and short being the order of the summer.

Going into next week we want to focus on a few things:

1. Lock down our gains on the long side

2. Focus upon opportunities as they present themselves long or short — Odds favor we retest the lows yet again in the coming days/weeks which sets up the short side and inverse ETFs for us.

3. Focus upon our monthly goal of “How Am I Going To Get My $500 per week ($2,000 per month) REGARDLESS OF WHAT THE MARKET THROWS OUR WAY

By David Grandey

www.allabouttrends.net

To learn more, sign up for our free newsletter and receive our free report -- "How To Outperform 90% Of Wall Street With Just $500 A Week."

David Grandey is the founder of All About Trends, an email newsletter service revealing stocks in ideal set-ups offering potential significant short-term gains. A successful canslim-based stock market investor for the past 10 years, he has worked for Meriwest Credit Union Silicon Valley Bank, helping to establish brand awareness and credibility through feature editorial coverage in leading national and local news media.

© 2010 Copyright  David Grandey- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules