My strategy for 2010 and January

The January Barometer indicates a negative year for stocks. Bearish monthly reversal candle is in place.

I've been calling for a bounce since last week, it never came so I'm still waiting for it so that I could pick up some shorts.

The QQQQ is very bearish, I'll look for a bounce to pick up some QID and then playing the Q's until it hits the weekly 200-MA

My strategy for 2010: only play to the short side and play small and mid-caps.

Watch stocks like IBM to monitor the health of the market. My prediction going forward is that IBM will go down until it hits its weekly 50-MA; that would be VERY bearish for the overall market

I finally have new trendlines!

This is the SPY intraday 60-min. chart:


as you can see, we have a descending channel taking place. A break out above the channel, I would suspect, will yield a move toward the thicker sloping trendline. TRADE IT!
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did anyone take some shorts when the SPY hit the 200-MA on the 10-min? PROFITS!

The easiest shorting opportunity is approaching!

Watching the intraday 10-minute chart of the SPY, I can't hope but to short the dang thing @ $110.40. If we can manage to get there today with the 200-MA sloping into it at the same time...it will be the easiest scalping opportunity!

I'm scalping off of the 200-MA

Smart money playing with dumb money

$109.80 on the SPY, I mentioned yesterday, is an extremely important level. We closed below it yesterday and traded below it 95% of the time today only to trade back above it the last 20 min. of the day!

I really REALLY feel that the markets are playing dead right now. It seems as though it's pretending a future break down but it faked so many people out now that the "bear trap" is in place.

Stay above $108.30 and break that $110.40 level so we could go to $112.50 level already...I still favor the upside. Make sure you have your stops in place!
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AGEN alerted Monday night @ $0.78 is now @ $0.8159 or about a 5% gainer, I still like this stock going forward.

MAKE MONEYYYYYY!!!! $$$$$$$$$$$$ :)

Markets are playing dead

I don't know what to make of these markets right now. $110.40 on the SPY is holding up very well as resistance. If we can manage to break that on the 60-min. chart, I would look for a move to at least $111.30

But if we don't get a clean break and close above $110.40 on the 60-min. look to $109.80, $109.80 will have to hold if there is going to be any bounce coming.

I still favor the upside but wouldn't bet a lot on it.

Chart update and Chart of Focus

I adjusted the sloping blue trendline on the SPY so that it fit with friday's close. The markets were up today as i expected (not as much as i had hoped). Futures are currently down but I'm still expecting a bigger up move unless we can close below friday's low.
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Last week's chart of focus was MNI and i said to go SHORT. You would have a net gain of 5%.
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This week, I say go LONG AGEN, it is currently trading at $0.78

The perfect set up

Great week for the bears, but expect some short covering next week. Here is why:

1) SPY is coming into major support @ $110 (the thick blue trendline)


2) DIA is coming into major support @ $102.80 (the thick blue trendline)


3) UUP is forming bearish patterns on the 60-min. The bearish pattern is confirmed with major supports on GLD and USO

4)Stocks like IBM, XOM, JPM are all coming into major support.

So take your profits bears!

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*GLD has broken its neckline, refer to the last post

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