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24/2008
24.11.2008
Editor's
Notes
MY TRADES
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Test of key support
Hi,
markets tried to break down last important support levels. Like 750 points area for SP500.
But it failed. Could we see bear market rally into end of the year ? It is too soon to say that.
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Everything will depend on situation in funds (money market,
mutual, hedge etc.) which are now major contributors to downsize. They
are receiving a lot of redemption requests and therefore they need to
sell a lot of holdings to generate cash to do these redemptions.
Until now we have not seen real buyers on market. Everything is sell side only or short cover only.
As I saw markets on important support levels I tried to put some small
money into work and I bought few hundreds shares . But most of them I
sold as everything plunged down.
This market is hard to trade for swing trader like me. The most importa
rule now is account protection. I personally do only few trades
and with small positions only.
Btw. I have read nice statistics. There are already over 100 stocks
from S&P500 index with share price less then 10 USD ! This is
number not seen during last 30 years !
Happy trading,
Richard
Checklist
If you are developing new trading strategy, it is very good to make
list of all important features of such trading system. And then
compare every trading opportunity with such checklist....
.... top of newsletter
Sector and ETF Watch List
Long
ETF watch list: LQD,TTH, FXI, XLU
Short
ETF watch list: SMH,BDH,WMH, XLB, FDN, XLF, GUR,EWO,EWQ,EZU,FEZ
Inverse ETF (long position): REW,, SCC,SKF
.
Last important support level for major indexes. Its breakdown could lead to another crash down.
Stocks Watch List
Long watch list: CLX, CPB, WMT, MCD, AMGN, PCG, HE
Short watch list: DRI,EDU,NFLX
My detailed trade setups are available here.
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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