| stock market trading chart pattern research |
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| Monday, September 25, 2006 |
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Stock Trading
If you trade stocks online, invest in stocks, trade the stock market, looking for advise on how to trade stocks effectively and looking for the tools to effectively trade the stock market. Including the right tools to research for investing, or day trading or swing trading. Including but not limited to penny stocks and high beta momentum then this tutorial is for you. Technical Analysis Update
Mon Sep 25th 2006 @ 07:38:15
Morning Notes
To summarize the weekend update this is going to be the trade of the
week. It’s end of month
we don’t know if its going to be window smashing or window dressing
but there will be rotation
that is already starting to take place out of tech stocks while medium
term reaction lows are
being placed into select commodity related sectors. As I type this
both crude oil and Brent
have broken 60 and are in the 59’s.
Oil stocks are sure to gap down on this as the broader market sees
this as a positive and will
attempt to gap up. (Other commodity related sectors are also weak,
gold, silver, natural gas, heating oil, and unleaded gas etc:)
downgrades will now start coming across the commodity related sectors
and they will appear right at first but guess what?
It’s a little too late.
At some point this week or next the trade will switch “broader market
stops dead in its tracks
and starts a rapid decline” while anything commodity related start
catching a bid. Last week I sent out an alert to sell into strength
any broader market stocks, I continue to say that but this time in
real BIG CAPITAL LETTERS. Sell strength this week in anything that
follows the broader market especially tech stocks starting with the
chips, then the internets and then software and then blue chips, banks
etc.
I will continue to point out the countertrend stocks as we shift from
coming off the short
side in commodity related sectors and start hammering the high beta
over bloated tech stocks.
As mentioned this weekend a few names were SNDK, VSEA, CYMI, AAPL,
LRCX, KLAC, etc:. But lets
wait a day or two for a little markup in prices before we start on
that trade.
If you are long oil, energy, steel, aluminum, gold, silver or any
other commodity related stock or sector it’s too late to sell they
already dropped to new yearly lows in most cases. Although they will
bounce (at the very latest next week maybe sooner) its too early to
bottom fish a few of the front runner names right now, but when that
time comes we will be all over it. So long story short the
trade for the fall will be a flip flop of the summer.
I will be in the trading room about an hour after the open, I have
some east coast calls to make and the noon update will come out
shortly after that.
So get in the mind set now that the very stocks we shorted all summer
are going to be our new longs possibly as soon as next week.
John
NVDA--ISSUED SHORT ALERT
VSEA--ISSUED SHORT ALERT
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