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Archive for May, 2010

My Trade Setup

May 22, 2010 Leave a comment

Previous chart seems [to my surprise] to be working out nicely.

Following will be my rough trade setup for next few weeks.

  • I expect immediate bottom at ~ SPX 1040-1020 (plan to sell the BGZ and buy BGU) by Monday or Tuesday.
  • Then I expect SPX to rise to 1160-1200 (then buy BGZ and sell BGU) .

Peace!

Categories: Finance

Projection – SPX

May 18, 2010 Leave a comment

  • Full Stochastic still indicating downward direction.
  • “Region of support” between SPX 1040-1000.
  • My Ideal support at SPX 1016.

Enough said!!

Categories: Finance

Projection

May 13, 2010 Leave a comment

WHAT DO IT SEE: Time to rollover and start going down!

  • When price was down volume was up and volume started going down with increase in price => Bearish!
  • Price couldn’t breach resistance at 1175, unless breached it is bearish.
  • 21 EMA almost ready to crossover 34 EMA. If clearly crossed => death cross => bearish!
  • Stoch still falling and no sign of turning => bearish.

Cheers!

Categories: Finance

Trend Changed

May 12, 2010 Leave a comment

As shown by above crossover! I am pretty sure this time we have begun a down trend lasting 12-16 months!

Categories: Finance

What a FreeFall !!

May 7, 2010 Leave a comment

  • Today’s freefall in the markets was described as a “Fat Finger” event and finger being pointed to one trade in the major bank! What I don’t get is how many fingers were there??? Almost all stocks took major plunge!!  To me it seems impossible to have so many bad trades!
  • History has sh0wn that when the damage is done, they find a scapegoat who can be blamed for the event!!
  • MY guess is that everything is fine with the “trading system” . It was a multi-stops triggered waterfall.

I observed this rally is forming a curve [See chart above] …visualize a cliff which flattens out at the top then a free fall. If this concept is true we could be bouncing off from SPX 1000-1050 range forming a 2nd shoulder of H&S pattern before taking a nose dive.

As far as my Projection goes, look at the chart.

  • Today 21EMA crossed 34EMA….this will have atleast some follow through to the downside.
  • Other indicators also point to the further low numbers and based on the chart I project SPX 1025-1050 (but my hunch says as low as 950-1000 …its just a hunch!! ).

Cheers!

Categories: Finance