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11/2008
25.05.2008
Editor's
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Start of new downtrend
Hello,
stock markets made strong reversal from important resistance levels during last week
Technically speaking resistance area of 200SMA worked well.
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Compared to my last newsletter I have to say that situation changed my
view to "sell" in Dow Jones and SP500 indexes area. Nasdaq is in
slightly better shape so technology area is more neutral in my view.
My short trades, I initiated during last two weeks in these indexes,
are working well and I plan to add if stock markets will confirm
my analysis. This analysis tells me that we are on the beginning of new
downtrend move into new lows for this year.
If you trade also European markets, check DAX (German stock index) and
IBEX (Spanish stock index) They are also very weak and and I am
shorting these two indexes too.
Oil is still approaching new highs. It
looks little bit overextended for me but I do not see any technical
signals for reversal. I do not want to enter any trade - long or short
- in oil futures or ETF. I feel it very risky now.
Happy trading,
Richard
Stock market simulator
Stock simulator could be good tool for beginners. Here are some basics about simulators.
.... top of newsletter
Sector and ETF Watch List
Long
ETF watch list: XBI, SWH, XLP, XLU, SLV, RSX, GML, EWZ
Short
ETF wacth list: RTH, XLF, PPH,XLY, XHB, DBA, TLT, IEF, FXI/GXC, PIN
Inverse ETF long : SCC, SKF, RXD
Dow Jones Consumer services sector is breaking down. It is good short swing trade idea. I plan to use Ultra short ETF with symbol SCC for this trade
Stocks Watch List
Software looks most promising on long side. Shorts need some type of pullback to offer best risk reward ratio.
Long
Watch list: AUXL, BG, BRP,CFFN, CLHB, COV, CVS, EGN, GIS, GLW, GML, GWR, NYB, STR, VIP, ADBE, ARBA, BMC, CYBS, ERES, MFE
Short
trade watch list: MNST, KMB, DNA, ADM, CTX, DHI, HOV, KBH, AN, BBBY, BKS, CBRL, CCL, CMG, CPKI, WYNN, RCL
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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