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03/2008
04.02.2008
Editor's
Notes
Trading
Tips:
Classic swing trading strategies
for
stock chart pattern
Sector
and ETF
Watch list
Stock
watch list
Contact me
My blog
Simple stock trading
home
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FED is trying to rescue financials
Hello,
stock markets bounced from oversold levels. Although somebody can say that it happened because of FED rate cuts.
I think technical analysis knows answer. A lot of sectors and
stocks dropped to their important support levels. And so they bounced.
Simple, no rocket science.
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I do not think that this bounce allows bulls
to think about uptrend. It was only pause before next leg down. I feel
that market is already in bear mode. It will be hard time for bull only
investors.
FED did two rate cuts. Somebody can say that they are trying to help
economy. I do not think so. They are only doing favor for banks and
other financial institutions to help them handle their big losses from
subprime debacle. FED is not saving US economy. And will not protect US
stock market before another decline.
I like the bounce as it allows me to make few long trades (CLHB long is
still partially open). And especially it helps develop good short trade
setups in a lot of stocks and ETFs.
Best wishes from sunny Marbella,
Richard
Classic swing trading strategies for stock chart patterns
As I promised I prepared first web page regarding swing trading strategies for stock chart patterns.
I found that there are two ways how to trade my preferred chart patterns.
One strategy is using classic trading rules. Second is using some advanced trading techniques.
Right now I have prepared description of classic rules.
.... top of newsletter
Sector and ETF Watch List
I expect new downtrend move soon so I am looking for possible short swing trading setups in ETF area.
I monitor only few ETFs for possible long trade. They are from commodity ETF group or Bond ETF group
Long
ETF watch list: GLD,IEF,EWM
I prefer short trades now. Here is list of setups I found during my regular weekend analysis. European ETFs looks very weak and are good short candidates.
Short
ETF trade setups: TTH, XLE,EWS,EWO and Long Inverse ETF QID
And also watch China stocks FXI for short trade - I plan to use inverse short ETF FXP.
Right now I feel that Energy sector is tired and is going to move down.
Stocks Watch List
I used my 52 week high list I mentioned in last newsletter to spot some
good trades on long side. I did trades in AUXL and CLHB. Both of them
are great for another long trades after some pullback.
But I am now orientated to short side of market. I want to trade short
trades after this market bounce. I found nice short swing trade setups
in Energy area. Here is list of some stock I like for short trade setups:
ADP,COP,CVX,JNPR,SLB,CTAS,KSS,SYY,EDU
Questions ?
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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