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Tuesday, December 28, 2010

Tuesday, After the Close!!!

This is another chart that I have had for two years now, and what is happening now is something I have not seen during this time period. The Bollinger bands have remained tight for an extended period of time as momentum has waned and the intra-day trading ranges have shrunk down to only 3.68 points being traded today.
This is the chart I do the majority of my trading on, the Russell using TNA/TZA as the vehicles. The Trendfinder system triggered a sell signal this morning at the open, and confirmed at the close. I sold my holdings in TNA about a half hour after the open and went short with a tight stop on TZA at 15.15. Since the August low I have been able to more then double my account using this simple system trading on it 95% of the time with only a couple small trades that were speculative intra-day plays. I am really looking forward to 2011 now the majority of the loose ends have been fixed and the complete system is up and running.
Even though Elliott wave can be a usefully trading tool in certain circumstances, having a system that does not rely on personal interpretation is a more reliable technique to increase profits.
The rising wedges continue to build on the SPX. I tried putting on an Ending Diagonal count but it does not work because the 4th wave does not overlap with the 1st, I half expect the market to just truncate with a large gap down open one morning that accelerates to the downside breaking support and making lower lows as the day progresses.

The end of this bullish run is coming close to an end now for the SPX, after the Nasdaq rolled over yesterday, the Russell follow suit and signaled a sell signal on the Trendfinder at the open this morning that was confirmed at the close. Neither the Russell or the Nasdaq were able to make a higher high today. What is lacking however is a decent looking impulse wave down on the major indexes so it is possible that we either have a truncated 5th coming, or there will be one last push for the SPX to finish this last squiggle. Any gap down open this week that does not reverse intra-data should be a major warning that the indexes are rolling over to a sell. With trading the rest of the week in these low volume numbers, it would not be surprising for a slow melt-up or sideways movements until volume picks up on Monday.
Breadth for the day closed at 1.07:1, decliners, with an improvement over yesterday's 466M shares to 557M shares traded today on the NYSE.
The Trend Finder II had three changes today, $RUT and AMZN changed to a sell, and GOLD went bullish. Yesterday I asked for a few tickers that people were interested in, three stuck-out as having some interesting potential so these were added to this list, JASO, JBL, and HNR.

9 comments:

  1. did you tweet your trades today?

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  2. anges, no, just the signals at the open, and the close. I did mention them in the chatroom.

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  3. Anges, I am not a big fan of posting all my trades, everyone has different risk/reward tolerances and following someone trade for trade is risky because I change stops frequently and at times do not have to time to post changes. I do provide all the charts and signals, and let people find their own trades.

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  4. I understand fully about the trades.

    But where could I have found those signals? I don't see them anywhere?

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  5. sorry I just saw you mentioned the signal on your blog this morning for RUT.

    So basically, you will post the signals on your daily blogs?

    ReplyDelete
  6. agnes, I did tweet them this morning also, I always do the tweeting first.

    http://twitter.com/#!/columbia1/status/19767946314252288

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  7. It's funny but I actually don't know much about "tweeting". I thought to find those "tweets" on your blog somewhere...:-)

    Anyway, if I am correct, you will post those signals by "tweet" and by posting them on your blog, correct?

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  8. yes, if you go to the trendfinder page, you can sign up for them there.

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  9. Flotek Industries Inc. (FTK) is flashing some amazing breakout signals and can potentially give a 100% to 200% profit.
    For details read my blog: http://faizan-stockpicks.blogspot.com/2010/12/flotek-industries-inc-ftk.html

    Also, one of my previous picks Geeknet Inc. (GKNT) is up 25% in just over a month.
    Check it here: http://faizan-stockpicks.blogspot.com/2010/11/geeknet-inc-gkntd.html

    ReplyDelete