On Monday the indices floated higher on very little volume. The S&P and Dow broke above their 50-day moving averages. Given the importance of those moving averages I would have expected the indices to give those gains back. This morning's weakness is being blamed on the North Korea missile situation but I think this pullback had to happen because of Monday's low volume move. As I type this QQQQ is below Monday's low and SPY is right at Monday's low.
For those who took Monday's poll, I've posted the results.
Potential swing trades:
See one of the recent 'Chart Reading' posts for some potential swing candidates.
Potential day trades:
(From Briefing.com)
Gapping Down
QSFT -11% (expects to restate results related to stock option practices), TRID -7.4% (Thomas Weisel downgrade), MT -6.3% (announces final approval and timetable of its tender offer for Arcelor), EGY -5.5% (Jefferies downgrade), ERS -4.2% (profit taking following 15% move on Monday), MRVL -4.4% (SEC requests option grant inquiry), BHP -3.6% (profit taking after 10% move in 3 days), OSIP -3.1%, LBIX -2.9% (profit taking after huge move last week), BVN -2.8%, AAV -2.5%, EXPD -2% (boutique firm downgrade), MED -1.8%, HANS -1.7%, BIDU -1.6% (music industry prepares lawsuit against Yahoo China -- Reuters), INTC -1% (profit taking after recent move higher)... Under $3: INSM -17% (judge rules co infringes TRCA patent).
Gapping Up
DQE +20% (to be acquired by consortium), ALTI +9.4% (receives initial order for electric car batteries), DNDN +7.6% (JMP Sec upgrade), MRGE +5.3% (to hold conf call today for company update), RMBS +5% (signs license agreement with Toshiba), MICC +4.7% (provides subscriber update), SIGM +4%, ASMI +3.4% (announces order), HPQ +1.5% (inks deal with Aker Kvaerner)... Mining stocks are strong on concerns over North Korea missile tests: EZM +5.3% (also begins zinc output at Portugal mine), CDE +3.2%, AUY +3%, BGO +2.3%, NXG +1.8%, SLW +1.5%, GG +1%... Under $3: CDV +32% (to be acquired by VEXP), CHTR +12% (Citigroup upgrade).
Disclaimer & How I use this list
First, congrats on an amazing website. Could you please explain why you post Up and Down gappers? How do you use them? Do you usually fade the gap, or do you wait for a retracement and then follow the trend?
Thanks
Well, thinking about it, I guess you just wait for the 10:15 candle, like for other stocks, and then go with the trend. I have a question about this. You say thatb you don't trade before 10:15, but if I understand well it is in fact 10:30, as you need for the 10:15 candle to be printed. Is it right?
Also, when you say that you wait for the 10:15 candle's breakout, do you in fact ignore the 9:30, 9:45..candles? I mean, if 9:45's high is higher than the 10:15 for example, do you still go long on a breakout of the 10:15's high?
Thank you.
Yes, I wait until after 10:15 and follow the intraday trend. I allow myself to start trading at 10:15, so at the completion of the candles that start at 10:00.
It depends on the pattern the stocks tracing. I'm basically just trying to find a consolidation zone. That could be the one preceeding candle or several candles. It just depends on what I see. Check the Trade Examples category to get an idea of what I'm looking for.
Good night Mike,
I´m from Brazil and i´ll start to follow your contents.
rgds
Obrigado Eduardo