Monthly Archives: August 2010

40 DMA % Index in the cellar.. $Study [chart]

August 24, 2010
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40 DMA % Index in the cellar.. $Study [chart]

Score: –6   Minus two’s all around for the 40 DPI.  Back to the oversold conditions of June. Video: How to interpret 40 DMA % Index Download: StockFinder  5.0  – 40 DMA % Index indicator Follow me: @redliontrader
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Oh no.. Back to the bear for the 52 week new highs.. $Study [chart]

August 24, 2010
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Oh no.. Back to the bear for the 52 week new highs.. $Study [chart]

Score: –6   The selloff on Tuesday returned the 52 WNH into the bears camp with all three indicators in the putting in lower daily bars and turning the momentum indicators to negative.  Not much to say positive in here. Video: How to interpret 52 Week New Highs Follow me on twitter: @RedLionTrader
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Turn Around Tuesday? $SPX 1075.50 a target for the bulls or $SPX 1055 for the bears..

August 24, 2010
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Turn Around Tuesday? $SPX 1075.50 a target for the bulls or $SPX 1055 for the bears..

Good morning.    Ugly gap down this morning.  There is housing numbers at 8:30am that may help, existing home sales, but housing numbers of late have been terrible.  Expectations for the number are extremely bleak.  If true, expect to hear thing like “worse level in more than a decade”.  Expectations are for a 26%...
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40 DMA % index still saying short.. $Study [chart]

August 23, 2010
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40 DMA % index still saying short.. $Study [chart]

Score: -6 Monday’s 40 DPI is still predicting downward directional bias.  Both the 52 WNH and 10DHL indexes put in bullish scores since we made a higher high during the day today, but this index which is heavily influenced by the close is saying down.  We would like to have at least a neutral...
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Ten Day Highs minus lows turn bullish $study [chart]

August 23, 2010
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Ten Day Highs minus lows turn bullish $study [chart]

Score: +6 with the gap up on Monday, the the 10 DHL’s on all three indexes put in both higher dailies and moved up their respective momentum lines.  This is a typical bottoming pattern.  The selloff into the close was problematic however for the bulls.  On Tuesday, we will need to have a flat...
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$WLK … A ten day trade.. looking for 10% return

August 23, 2010
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$WLK … A ten day trade.. looking for 10% return

This is an RSI-Diff trade.  It looks for a strong longer term RSI with a shorter oversold RSI.  An attempt to catch a bounce that will resume the current trend up.   WLK meets this criteria..   Rules: 1. Buy the open (if not gapped up) below 26.00 2. Sell when  you get a...
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Monday’s gap put the 52 Week new highs into the bulls column.. $STUDY [chart]

August 23, 2010
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Monday’s gap put the 52 Week new highs into the bulls column.. $STUDY [chart]

Score: +4    The close certainly was not encouraging for the bulls, but we did add new highs, even into the close today. Tomorrow we will have to rally up  to SPX 1081  again to keep the score bullish.  It really could be just a one day wonder as the cycle now become more...
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$KIRK for an RSI-X ten day trade..

August 23, 2010
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$KIRK for an RSI-X ten day trade..

  This is an RSI-X (extreme) play where the RSI has an extreme low so we would expect a bounce in the next couple of days.   Note this is an extremely volatile stock that just announced poor earnings.  Take the trade with caution   rules: 1. Buy $KIRK on the close 2. Sell...
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Da Bulls need to print some $SPX 1081s today..

August 23, 2010
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Da Bulls need to print some $SPX 1081s today..

Good morning.    I think the digest is chocked full of great  information this morning.  Something for everyone.  I have included some of my ten day plays. There is the usual and also a reminder to signup for the early bird special.  The theme for this week is the market needs to find a...
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10 Day trade .. using OTM put options on $LEAP

August 22, 2010
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10 Day trade .. using OTM put options on $LEAP

  One more short play for the bears.  $LEAP has had a bounce on a continuous selloff.  It should be good for 4% to the downside.  I want to try this trade this time with options.  We are only going to hold the options for 3 days.  The Theta on the Sept 11 puts...
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