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02/2008
20.01.2008
Editor's
Notes
Trading
Tips:
Chart patterns I like
Sector
and ETF
Watch list
Stock
watch list
Contact me
My blog
Simple stock trading
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US markets in bear mode
Hello,
huge sell off during beginning of January moved all important stock market indexes into bear mode.
It means that I will favor more short trades and will be more aggressive on short side then on long side. |
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Although markets are not in good conditions, I
made more long then short trades during last 2 weeks. I closed
practically all my short trades after first sell-off (as I mentioned in
previous issue).
These long trades was in half position size and most of them in
Biotechs / Health care areas. These sectors are very strong in current
market environment and offer good long trading
opportunities.
Market is sold oout without any significant bounce. It is harder and
harder to find good swing short trade setup. I am very cautious right
now in my trading. You know first rule of every trader - preserve your
trading capital.
Btw. I moved with family to southern Spain to enjoy better weather
. There is too cold in Prague. We will stay in Marbella, Costa del Sol
for a month. It is also advantage of trading - I am able to trade
anywhere in the world. I need only Internet access. And my wife is
happy as she like warm weather and sunshine very much.
Happy trading
Richard
My preferred stock chart patterns
I noticed that I use same stock chart pattern regularly in my stock
trading setups. My trading is based on chart patterns. I do not use too
much indicators.
I described them on my web pages.
I will write more about trading strategies for these chart patterns in
next issues of this newsletter. There are typical ways how to
trade them and also advanced techniques I learned during my live
trading . Both I plan to describe . So keep tuned.
Since that you can read basics about my preferred stock chart patterns I have on my pages
.... top of newsletter
Sector and ETF Watch List
I am in short of TTH (Telecom HOLDRS) I mentioned in my blog. It is breakdown trade. Partials already covered and rest will have trail stop initiated
There is not too much candidates for trades as shorts need to pullback first.
Long
ETF watch list: XBI,GLD,IEF,TLT,EWM
Short
ETF watch list: XLE,SMH,XLY,XLI,EWH,EWO,EWU
Here is weekly chart of XBI. It is in range between 59 and 62.
But this sector is looking positive and long trade opportunities
could be find in this sector.
Stocks Watch List
I think that markets are in strong downtrend but without any
significant correction. Such correction is necessary for good short
trade setups right now. I cannot find low risk short trade setup.
I am thinking about some long trade as markets and sectors are
approaching their support levels. I noticed that also strong
sectors and stocks were affected by heavy selling last week. It can
signalize final stage of fear and panic on markets. Such situation
often means change in current trend and beginning of at least temporary
up move.
I ran my 52 week high scanner yesterday and it offered me only
small list of stocks. But they are the best candidates for long
trades right now. Here is the list:
52 Week Highs List for Long trades: ABT,ACOR,APOL,AUXL,CEF,CHT, CLHB,CN,CVH, DV, GGL, GLD,HSIC, HUM,HWAY,ILMN,IVGN,MHS,MMSI,RGEN, SLV,SUNH,TEVA,VVUS,WMGI
I will check them to find good long swing trade setup.
Ask me
I will be pleased to reply to any of your questions. Do you have
something to discuss ? Or would you like to read something in next
issue of newsletter or on my web pages or in my blog ? Let me know .
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