March 2007 Archives

• The stock is dead, long live commodities, says Jim Rogers
  The current stock market environment is similar to that of the 1970s with big trading ranges, which some people were able to exploit successfully. "But most people are not very good at this. They need to have a secular bull market
  (tags: stocks commodities investing)
• 3-30-07 Wallstrip Chat: Michael Covel
  Lindsay sits down with Michael Covel, author of “Turtle Trader” and “Trend Following”, and gets him to open the doors to the Turtle Trading Library.
  (tags: stocks video)
• For Easier Taxes, Plan Ahead
  For active traders, taxes can be difficult — and costly — if you’re not proactive. These tax-season tips can help fatten your refund check or lower your tax bill.
  (tags: taxes trading stocks investing)
• TraderFeed: Three Principles For Blogs And Businesses
  (tags: blogging for_TM)
• Why Traders Plan Trades But Don't Trade Their Plans
  (tags: trading)

Michelle B submits:

Having read a few comments at trading blogs---OK, I have read zillions---I have encountered more often than not, a frenzied, harried, stressful approach to time when one is trading. Some feel the demonic pressure crushing them as soon as the market opens; others feel enervated by its demands needling and pinpricking them throughout the trading day. Regard time, instead, as a wonderful and gracious friend, accommodating your need to focus and execute successful trades.

Specifically, I rely upon my friend, time, in three concrete ways:

I. Using Time frames

All time frames are useful and valuable--monthly, weekly, daily, hourly, thirty minute, fifteen minute, five minute, and last, but not least, one minute. My motto is: Fondle your candles. I look at my candlesticks lovingly and with great attention to details, sucking out the last bit of information they can give me. Certainly a graphic way of stating my point, but candlesticks of different time frames are worth the time upon which to ponder. Ah, time. We got it, so we need to use it well. And there they are, our helpful friends, all lined up, willing to protect our capital like dutiful soldiers, but we are too busy squandering time by not focusing and being distracted by all the action.

Often, time is used to oversee too many candidates or it is used to mind too many trades, so it is easier to just focus on one or two time frames, therefore resulting in the missing of much information. Some traders regard the one minute as dangerous, stimulating them to act foolish and blinding them to the smoother pattern of longer time frames. Others regard the longer time frames as concealing more pertinent details that only the shorter time frames can reveal. The disadvantages of one time frame is countered by the advantages of another, so using them all is truly taking advantage of those little bundles of time, with their high-quality content. In addition, looking at many time frames, will allow the beginner trader to learn the workings of the market. Checking out many time frames does not mean that you violate either your trading methodology or risk parameters.

II. Identifying, preparing for, and focusing on special time periods in the trading day

Already having discussed POT, I will address several other special times in the trading day.

1) 9:30 AM ET to 10:45 is a time of high volume, where usually a trend happens after a breakout in the opening range or consolidation.
2) 10:45 AM ET to Noon ET is when, following whatever trend that happened after the open, price will often consolidate during this time period on low to moderate volume.
3) Noon to 1:30 PM ET is when slow and steady trend continuing or reversals can happen on low to moderate volume.
4) 1:30 PM ET is when abrupt and pronounced continuation of trending or reversal on high volume can happen.
5) 2 PM ET (better known as POT) is also when abrupt and pronounced continuation of trending or reversal on high volume can happen.
6) 3 PM ET is yet again a possible time for either a high-volumed, abrupt, and pronounced continuation of trending or reversal happening.
7) 3:30 PM ET, yup, you guessed it, this particularly tricky time can trigger a very abrupt trend continuation or reversal on high volume.

III. Awareness of economic/seasonal events

It is important to know not only when earning releases are due, but also economic reports, options expirations, end of month and quarter, holidays, and seasonal times like the usual low-volume summertime.

Time is like beauty, in the sense how it can be interpreted differently in the eyes of the beholder. The above information was gleaned from actually trading the market over years. Each trader need to take the basic information and apply it to her/himself in order to make it their own so it will work equally well for them.

Michelle B submits:

Trading the second leg of two measured up legs separated by a bull flag is one my favorite trades, especially because the trade usually lasts only 30 to 60 minutes. In most cases, I will at least partially anticipate the breakout allowing me to keep a very tight stop loss.

What is noteworthy about this particular daytrade in PPL which I took Tuesday, March 27 is the smallness of the move. PPL is an electrical utility which got an upgrade premarket, and which I identified via the top gainers scan for the NYSE. Electrical utilities trading on the NYSE usually do not attract daytraders because intraday trading ranges are small. However, PPL made a new 52 week high and had high volume with a decent bid/ask spread.

Entering at 41.14 where the gently rising, one-minute 50 sma (blue line on the displayed chart) served as support and exiting at 41.46 resulted in only a .32 move. However, the stop loss was just .05, a couple pennies under the 50 sma support, so this small move packed a high R punch of 6. Because of such a small risk, I was able to trade a sizable lot resulting in a nice profit. So small can be big.

• Whole Foods (WFMI): The next Starbucks - MSN Money
  The 'emerging lifestyle' chain, known for high-quality goods and pleasant shopping environments, is on the verge of explosive growth that should double its stock price in three years.
  (tags: stocks toread)
• A Look At Kagi Charts
  This relatively unknown tool could help you find an asset's trend faster.
  (tags: stocks technicalanalysis)
• The Nintendo Wii gives NEW life to an old TREND - Gaming
  (tags: stocks)
• Stock Trends, Charts, and Commentary
  Are you letting your personal market opinion change how you read a chart? Here is the test ...
  (tags: stocks technicalanalysis)
• 3-28-07 MasterCard Incorporated (MA) | Wallstrip
  Going public and trending upwards: priceless. Making it easier to spend money with your MasterCard: also priceless.
  (tags: stocks)
• Sign of a Market Top?
  George Gilder has launched a hedge fund called the BetaZero Gilder Technology Fund.
  (tags: stocks hedgefunds)
• Looking Over The Shoulders Of A Successful Trader
  Would you be interested in peering over the shoulder of a profitable trader? one who has taken a $100,000 account and in less than three months grown it to $1.6 million?
  (tags: trading)
• Barry Ritholtz's Thoughts on Bernanke's Testimony
  This testimony makes clear (to me at least) drew precisely the wrong conclusion from the FOMC statement last week. Bernanke is now correcting that error via this speech.
  (tags: stocks economics)
• Trading And Information Processing: Why Traders "Sabotage" Themselves
  (tags: trading success Psychology toread)
• Ways to View Wikipedia on a PDA
  (tags: PDA wikipedia Reference palm Tools treo)

(Note: This will be the last regular post (watchlists & recaps) until this weekend. Look for the next recap this weekend once I'm back from New York.)

Trading was choppy & sloppy today as the market tried to digest Bernanke's comments. The bulls gave it a good try mid-day but the indices still closed near their lows for the day. Here's the intraday QQQQ chart (15 minute candles):

It's also interesting to note that Bernanke's clarified the Fed's stance on inflation and now the market has basically given back all of the post-Fed gains from last week. Here's the intraday S&P 500 chart showing the liftoff caused by the Fed decision / statement last Wednesday:

I thought I'd show the Multiple Moving Averages (MMAs) again. Here's the Nasdaq chart showing that last week's rally didn't hold long enough to flip the long-term group back to a bullish posture. I'm now on the lookout for that long-term group to spread out, showing a strengthening downtrend.

The S&P 500 closed beneath its 50 DMA and gave a stochastic sell signal. The obvious potential support level for it and the other indices is the mid point of the W-bottom made earlier this month -- around 1410 for the S&P and 2405 for the Nasdaq.

The Russell's back below 800.

Lot's of 'downgrades' today with all the moving average breaks.

The 'homies' (& their ilk) are in the news again with this FBI probe of Beazer Homes for mortgage lending fraud. So my group of homebuilders & lenders (BZH, KBH, LEN, DHI, CTX, PHM, TOL, CFC, WM, LEND, FMT, WFC...) will remain front & center on my monitors.

The S&P is set to gap under its 50-day moving average so things could get interesting today as that important technical level gets taken out. Perhaps Big Ben Bernanke can save the day. He speaks at 10:30. I'm not sure that he'll say anything market-moving but there's always that potential...

On Today's Calendar:

• 10:30 -- Crude Inventories

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• Patience Is A Trader's Virtue
  Although the best investors and traders understand the importance of patience, it is one of the most difficult skills to learn as an investor and trader.
  (tags: trading investing)
• Why I Am a Bear by Tim Knight
  The bear explains himself
  (tags: stocks)
• Hillenbrand Industries (HB) | Wallstrip
  Whether you’re checking in or checking out, Hillenbrand Industries (HB) has just the product for you….too bad they don’t make wooden stakes.
  (tags: stocks)
• Toby Crabel And The Epistemology Of Trading Expertise
  (tags: trading toread)

If you're in New York Friday night please stop by and help us celebrate the 100^th episode of WallStrip:

Come join us if you are in NEW YORK this Friday evening to celebrate the actors and crew that helped build Wallstrip through 100 plus shows.

It is at 54 Bond Street, 3rd Floor at 9 pm. Food, Drinks, Cramer 2 (maybe even the real Cramer) the Vampire, The Adobe Flasher, The Doctors, and yes… Lindsay.

Selling was broad-based today but there wasn't much volume behind it. The major indices each lost at least 0.5% on the day as they hover near their 50-day moving averages. The Dow and Nasdaq closed beneath their 'fiddies' and are close to giving stochastic sell signals. The S&P is only 3 points above its 50-day moving average and it sure seems likely that it will also break that line. But I can't get too excited about playing the short side here unless volume picks up. You know what they say about shorting a dull market...

Worden had an interesting S&P chart & comment tonight. He did another of his "kiss the channel goodbye" pieces today. In other words, the index broke down out of its channel and then rallied back to touch (kiss) the bottom of that channel before rolling over. The channel he used, which is shown below is a regression channel with parameters of 100, 17, 20:

Here's my S&P chart. My focus will be on the 50-day moving average tomorrow.

The Naz is looking like a short to me but I'd like it better as a short if it breaks Monday's low on higher volume.

Looks like a retest of 800 on the Russell is around the corner.

The Nasdaq's intermediate-term trend is now down since it broke its 50-day moving average.

Home, home on the range... we're set for a small gap down, which will put the indices right in the middle of their ranges. (Yawn) Maybe some of these housing related stocks will follow-through to the downside...

On Today's Calendar:

• 10:00 -- Consumer Confidence

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• The stock is dead, long live commodities, says Jim Rogers
  The current stock market environment is similar to that of the 1970s with big trading ranges, which some people were able to exploit successfully. "But most people are not very good at this. They need to have a secular bull market
  (tags: stocks commodities investing)
• 3-30-07 Wallstrip Chat: Michael Covel
  Lindsay sits down with Michael Covel, author of “Turtle Trader” and “Trend Following”, and gets him to open the doors to the Turtle Trading Library.
  (tags: stocks video)
• For Easier Taxes, Plan Ahead
  For active traders, taxes can be difficult — and costly — if you’re not proactive. These tax-season tips can help fatten your refund check or lower your tax bill.
  (tags: taxes trading stocks investing)
• TraderFeed: Three Principles For Blogs And Businesses
  (tags: blogging for_TM)
• Why Traders Plan Trades But Don't Trade Their Plans
  (tags: trading)

Michelle B submits:

Having read a few comments at trading blogs---OK, I have read zillions---I have encountered more often than not, a frenzied, harried, stressful approach to time when one is trading. Some feel the demonic pressure crushing them as soon as the market opens; others feel enervated by its demands needling and pinpricking them throughout the trading day. Regard time, instead, as a wonderful and gracious friend, accommodating your need to focus and execute successful trades.

Specifically, I rely upon my friend, time, in three concrete ways:

I. Using Time frames

All time frames are useful and valuable--monthly, weekly, daily, hourly, thirty minute, fifteen minute, five minute, and last, but not least, one minute. My motto is: Fondle your candles. I look at my candlesticks lovingly and with great attention to details, sucking out the last bit of information they can give me. Certainly a graphic way of stating my point, but candlesticks of different time frames are worth the time upon which to ponder. Ah, time. We got it, so we need to use it well. And there they are, our helpful friends, all lined up, willing to protect our capital like dutiful soldiers, but we are too busy squandering time by not focusing and being distracted by all the action.

Often, time is used to oversee too many candidates or it is used to mind too many trades, so it is easier to just focus on one or two time frames, therefore resulting in the missing of much information. Some traders regard the one minute as dangerous, stimulating them to act foolish and blinding them to the smoother pattern of longer time frames. Others regard the longer time frames as concealing more pertinent details that only the shorter time frames can reveal. The disadvantages of one time frame is countered by the advantages of another, so using them all is truly taking advantage of those little bundles of time, with their high-quality content. In addition, looking at many time frames, will allow the beginner trader to learn the workings of the market. Checking out many time frames does not mean that you violate either your trading methodology or risk parameters.

II. Identifying, preparing for, and focusing on special time periods in the trading day

Already having discussed POT, I will address several other special times in the trading day.

1) 9:30 AM ET to 10:45 is a time of high volume, where usually a trend happens after a breakout in the opening range or consolidation.
2) 10:45 AM ET to Noon ET is when, following whatever trend that happened after the open, price will often consolidate during this time period on low to moderate volume.
3) Noon to 1:30 PM ET is when slow and steady trend continuing or reversals can happen on low to moderate volume.
4) 1:30 PM ET is when abrupt and pronounced continuation of trending or reversal on high volume can happen.
5) 2 PM ET (better known as POT) is also when abrupt and pronounced continuation of trending or reversal on high volume can happen.
6) 3 PM ET is yet again a possible time for either a high-volumed, abrupt, and pronounced continuation of trending or reversal happening.
7) 3:30 PM ET, yup, you guessed it, this particularly tricky time can trigger a very abrupt trend continuation or reversal on high volume.

III. Awareness of economic/seasonal events

It is important to know not only when earning releases are due, but also economic reports, options expirations, end of month and quarter, holidays, and seasonal times like the usual low-volume summertime.

Time is like beauty, in the sense how it can be interpreted differently in the eyes of the beholder. The above information was gleaned from actually trading the market over years. Each trader need to take the basic information and apply it to her/himself in order to make it their own so it will work equally well for them.

Michelle B submits:

Trading the second leg of two measured up legs separated by a bull flag is one my favorite trades, especially because the trade usually lasts only 30 to 60 minutes. In most cases, I will at least partially anticipate the breakout allowing me to keep a very tight stop loss.

What is noteworthy about this particular daytrade in PPL which I took Tuesday, March 27 is the smallness of the move. PPL is an electrical utility which got an upgrade premarket, and which I identified via the top gainers scan for the NYSE. Electrical utilities trading on the NYSE usually do not attract daytraders because intraday trading ranges are small. However, PPL made a new 52 week high and had high volume with a decent bid/ask spread.

Entering at 41.14 where the gently rising, one-minute 50 sma (blue line on the displayed chart) served as support and exiting at 41.46 resulted in only a .32 move. However, the stop loss was just .05, a couple pennies under the 50 sma support, so this small move packed a high R punch of 6. Because of such a small risk, I was able to trade a sizable lot resulting in a nice profit. So small can be big.

• Whole Foods (WFMI): The next Starbucks - MSN Money
  The 'emerging lifestyle' chain, known for high-quality goods and pleasant shopping environments, is on the verge of explosive growth that should double its stock price in three years.
  (tags: stocks toread)
• A Look At Kagi Charts
  This relatively unknown tool could help you find an asset's trend faster.
  (tags: stocks technicalanalysis)
• The Nintendo Wii gives NEW life to an old TREND - Gaming
  (tags: stocks)
• Stock Trends, Charts, and Commentary
  Are you letting your personal market opinion change how you read a chart? Here is the test ...
  (tags: stocks technicalanalysis)
• 3-28-07 MasterCard Incorporated (MA) | Wallstrip
  Going public and trending upwards: priceless. Making it easier to spend money with your MasterCard: also priceless.
  (tags: stocks)
• Sign of a Market Top?
  George Gilder has launched a hedge fund called the BetaZero Gilder Technology Fund.
  (tags: stocks hedgefunds)
• Looking Over The Shoulders Of A Successful Trader
  Would you be interested in peering over the shoulder of a profitable trader? one who has taken a $100,000 account and in less than three months grown it to $1.6 million?
  (tags: trading)
• Barry Ritholtz's Thoughts on Bernanke's Testimony
  This testimony makes clear (to me at least) drew precisely the wrong conclusion from the FOMC statement last week. Bernanke is now correcting that error via this speech.
  (tags: stocks economics)
• Trading And Information Processing: Why Traders "Sabotage" Themselves
  (tags: trading success Psychology toread)
• Ways to View Wikipedia on a PDA
  (tags: PDA wikipedia Reference palm Tools treo)

(Note: This will be the last regular post (watchlists & recaps) until this weekend. Look for the next recap this weekend once I'm back from New York.)

Trading was choppy & sloppy today as the market tried to digest Bernanke's comments. The bulls gave it a good try mid-day but the indices still closed near their lows for the day. Here's the intraday QQQQ chart (15 minute candles):

It's also interesting to note that Bernanke's clarified the Fed's stance on inflation and now the market has basically given back all of the post-Fed gains from last week. Here's the intraday S&P 500 chart showing the liftoff caused by the Fed decision / statement last Wednesday:

I thought I'd show the Multiple Moving Averages (MMAs) again. Here's the Nasdaq chart showing that last week's rally didn't hold long enough to flip the long-term group back to a bullish posture. I'm now on the lookout for that long-term group to spread out, showing a strengthening downtrend.

The S&P 500 closed beneath its 50 DMA and gave a stochastic sell signal. The obvious potential support level for it and the other indices is the mid point of the W-bottom made earlier this month -- around 1410 for the S&P and 2405 for the Nasdaq.

The Russell's back below 800.

Lot's of 'downgrades' today with all the moving average breaks.

The 'homies' (& their ilk) are in the news again with this FBI probe of Beazer Homes for mortgage lending fraud. So my group of homebuilders & lenders (BZH, KBH, LEN, DHI, CTX, PHM, TOL, CFC, WM, LEND, FMT, WFC...) will remain front & center on my monitors.

The S&P is set to gap under its 50-day moving average so things could get interesting today as that important technical level gets taken out. Perhaps Big Ben Bernanke can save the day. He speaks at 10:30. I'm not sure that he'll say anything market-moving but there's always that potential...

On Today's Calendar:

• 10:30 -- Crude Inventories

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• Patience Is A Trader's Virtue
  Although the best investors and traders understand the importance of patience, it is one of the most difficult skills to learn as an investor and trader.
  (tags: trading investing)
• Why I Am a Bear by Tim Knight
  The bear explains himself
  (tags: stocks)
• Hillenbrand Industries (HB) | Wallstrip
  Whether you’re checking in or checking out, Hillenbrand Industries (HB) has just the product for you….too bad they don’t make wooden stakes.
  (tags: stocks)
• Toby Crabel And The Epistemology Of Trading Expertise
  (tags: trading toread)

If you're in New York Friday night please stop by and help us celebrate the 100^th episode of WallStrip:

Come join us if you are in NEW YORK this Friday evening to celebrate the actors and crew that helped build Wallstrip through 100 plus shows.

It is at 54 Bond Street, 3rd Floor at 9 pm. Food, Drinks, Cramer 2 (maybe even the real Cramer) the Vampire, The Adobe Flasher, The Doctors, and yes… Lindsay.

Selling was broad-based today but there wasn't much volume behind it. The major indices each lost at least 0.5% on the day as they hover near their 50-day moving averages. The Dow and Nasdaq closed beneath their 'fiddies' and are close to giving stochastic sell signals. The S&P is only 3 points above its 50-day moving average and it sure seems likely that it will also break that line. But I can't get too excited about playing the short side here unless volume picks up. You know what they say about shorting a dull market...

Worden had an interesting S&P chart & comment tonight. He did another of his "kiss the channel goodbye" pieces today. In other words, the index broke down out of its channel and then rallied back to touch (kiss) the bottom of that channel before rolling over. The channel he used, which is shown below is a regression channel with parameters of 100, 17, 20:

Here's my S&P chart. My focus will be on the 50-day moving average tomorrow.

The Naz is looking like a short to me but I'd like it better as a short if it breaks Monday's low on higher volume.

Looks like a retest of 800 on the Russell is around the corner.

The Nasdaq's intermediate-term trend is now down since it broke its 50-day moving average.

Home, home on the range... we're set for a small gap down, which will put the indices right in the middle of their ranges. (Yawn) Maybe some of these housing related stocks will follow-through to the downside...

On Today's Calendar:

• 10:00 -- Consumer Confidence

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• The stock is dead, long live commodities, says Jim Rogers
  The current stock market environment is similar to that of the 1970s with big trading ranges, which some people were able to exploit successfully. "But most people are not very good at this. They need to have a secular bull market
  (tags: stocks commodities investing)
• 3-30-07 Wallstrip Chat: Michael Covel
  Lindsay sits down with Michael Covel, author of “Turtle Trader” and “Trend Following”, and gets him to open the doors to the Turtle Trading Library.
  (tags: stocks video)
• For Easier Taxes, Plan Ahead
  For active traders, taxes can be difficult — and costly — if you’re not proactive. These tax-season tips can help fatten your refund check or lower your tax bill.
  (tags: taxes trading stocks investing)
• TraderFeed: Three Principles For Blogs And Businesses
  (tags: blogging for_TM)
• Why Traders Plan Trades But Don't Trade Their Plans
  (tags: trading)

Michelle B submits:

Having read a few comments at trading blogs---OK, I have read zillions---I have encountered more often than not, a frenzied, harried, stressful approach to time when one is trading. Some feel the demonic pressure crushing them as soon as the market opens; others feel enervated by its demands needling and pinpricking them throughout the trading day. Regard time, instead, as a wonderful and gracious friend, accommodating your need to focus and execute successful trades.

Specifically, I rely upon my friend, time, in three concrete ways:

I. Using Time frames

All time frames are useful and valuable--monthly, weekly, daily, hourly, thirty minute, fifteen minute, five minute, and last, but not least, one minute. My motto is: Fondle your candles. I look at my candlesticks lovingly and with great attention to details, sucking out the last bit of information they can give me. Certainly a graphic way of stating my point, but candlesticks of different time frames are worth the time upon which to ponder. Ah, time. We got it, so we need to use it well. And there they are, our helpful friends, all lined up, willing to protect our capital like dutiful soldiers, but we are too busy squandering time by not focusing and being distracted by all the action.

Often, time is used to oversee too many candidates or it is used to mind too many trades, so it is easier to just focus on one or two time frames, therefore resulting in the missing of much information. Some traders regard the one minute as dangerous, stimulating them to act foolish and blinding them to the smoother pattern of longer time frames. Others regard the longer time frames as concealing more pertinent details that only the shorter time frames can reveal. The disadvantages of one time frame is countered by the advantages of another, so using them all is truly taking advantage of those little bundles of time, with their high-quality content. In addition, looking at many time frames, will allow the beginner trader to learn the workings of the market. Checking out many time frames does not mean that you violate either your trading methodology or risk parameters.

II. Identifying, preparing for, and focusing on special time periods in the trading day

Already having discussed POT, I will address several other special times in the trading day.

1) 9:30 AM ET to 10:45 is a time of high volume, where usually a trend happens after a breakout in the opening range or consolidation.
2) 10:45 AM ET to Noon ET is when, following whatever trend that happened after the open, price will often consolidate during this time period on low to moderate volume.
3) Noon to 1:30 PM ET is when slow and steady trend continuing or reversals can happen on low to moderate volume.
4) 1:30 PM ET is when abrupt and pronounced continuation of trending or reversal on high volume can happen.
5) 2 PM ET (better known as POT) is also when abrupt and pronounced continuation of trending or reversal on high volume can happen.
6) 3 PM ET is yet again a possible time for either a high-volumed, abrupt, and pronounced continuation of trending or reversal happening.
7) 3:30 PM ET, yup, you guessed it, this particularly tricky time can trigger a very abrupt trend continuation or reversal on high volume.

III. Awareness of economic/seasonal events

It is important to know not only when earning releases are due, but also economic reports, options expirations, end of month and quarter, holidays, and seasonal times like the usual low-volume summertime.

Time is like beauty, in the sense how it can be interpreted differently in the eyes of the beholder. The above information was gleaned from actually trading the market over years. Each trader need to take the basic information and apply it to her/himself in order to make it their own so it will work equally well for them.

Michelle B submits:

Trading the second leg of two measured up legs separated by a bull flag is one my favorite trades, especially because the trade usually lasts only 30 to 60 minutes. In most cases, I will at least partially anticipate the breakout allowing me to keep a very tight stop loss.

What is noteworthy about this particular daytrade in PPL which I took Tuesday, March 27 is the smallness of the move. PPL is an electrical utility which got an upgrade premarket, and which I identified via the top gainers scan for the NYSE. Electrical utilities trading on the NYSE usually do not attract daytraders because intraday trading ranges are small. However, PPL made a new 52 week high and had high volume with a decent bid/ask spread.

Entering at 41.14 where the gently rising, one-minute 50 sma (blue line on the displayed chart) served as support and exiting at 41.46 resulted in only a .32 move. However, the stop loss was just .05, a couple pennies under the 50 sma support, so this small move packed a high R punch of 6. Because of such a small risk, I was able to trade a sizable lot resulting in a nice profit. So small can be big.

• Whole Foods (WFMI): The next Starbucks - MSN Money
  The 'emerging lifestyle' chain, known for high-quality goods and pleasant shopping environments, is on the verge of explosive growth that should double its stock price in three years.
  (tags: stocks toread)
• A Look At Kagi Charts
  This relatively unknown tool could help you find an asset's trend faster.
  (tags: stocks technicalanalysis)
• The Nintendo Wii gives NEW life to an old TREND - Gaming
  (tags: stocks)
• Stock Trends, Charts, and Commentary
  Are you letting your personal market opinion change how you read a chart? Here is the test ...
  (tags: stocks technicalanalysis)
• 3-28-07 MasterCard Incorporated (MA) | Wallstrip
  Going public and trending upwards: priceless. Making it easier to spend money with your MasterCard: also priceless.
  (tags: stocks)
• Sign of a Market Top?
  George Gilder has launched a hedge fund called the BetaZero Gilder Technology Fund.
  (tags: stocks hedgefunds)
• Looking Over The Shoulders Of A Successful Trader
  Would you be interested in peering over the shoulder of a profitable trader? one who has taken a $100,000 account and in less than three months grown it to $1.6 million?
  (tags: trading)
• Barry Ritholtz's Thoughts on Bernanke's Testimony
  This testimony makes clear (to me at least) drew precisely the wrong conclusion from the FOMC statement last week. Bernanke is now correcting that error via this speech.
  (tags: stocks economics)
• Trading And Information Processing: Why Traders "Sabotage" Themselves
  (tags: trading success Psychology toread)
• Ways to View Wikipedia on a PDA
  (tags: PDA wikipedia Reference palm Tools treo)

(Note: This will be the last regular post (watchlists & recaps) until this weekend. Look for the next recap this weekend once I'm back from New York.)

Trading was choppy & sloppy today as the market tried to digest Bernanke's comments. The bulls gave it a good try mid-day but the indices still closed near their lows for the day. Here's the intraday QQQQ chart (15 minute candles):

It's also interesting to note that Bernanke's clarified the Fed's stance on inflation and now the market has basically given back all of the post-Fed gains from last week. Here's the intraday S&P 500 chart showing the liftoff caused by the Fed decision / statement last Wednesday:

I thought I'd show the Multiple Moving Averages (MMAs) again. Here's the Nasdaq chart showing that last week's rally didn't hold long enough to flip the long-term group back to a bullish posture. I'm now on the lookout for that long-term group to spread out, showing a strengthening downtrend.

The S&P 500 closed beneath its 50 DMA and gave a stochastic sell signal. The obvious potential support level for it and the other indices is the mid point of the W-bottom made earlier this month -- around 1410 for the S&P and 2405 for the Nasdaq.

The Russell's back below 800.

Lot's of 'downgrades' today with all the moving average breaks.

The 'homies' (& their ilk) are in the news again with this FBI probe of Beazer Homes for mortgage lending fraud. So my group of homebuilders & lenders (BZH, KBH, LEN, DHI, CTX, PHM, TOL, CFC, WM, LEND, FMT, WFC...) will remain front & center on my monitors.

The S&P is set to gap under its 50-day moving average so things could get interesting today as that important technical level gets taken out. Perhaps Big Ben Bernanke can save the day. He speaks at 10:30. I'm not sure that he'll say anything market-moving but there's always that potential...

On Today's Calendar:

• 10:30 -- Crude Inventories

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• Patience Is A Trader's Virtue
  Although the best investors and traders understand the importance of patience, it is one of the most difficult skills to learn as an investor and trader.
  (tags: trading investing)
• Why I Am a Bear by Tim Knight
  The bear explains himself
  (tags: stocks)
• Hillenbrand Industries (HB) | Wallstrip
  Whether you’re checking in or checking out, Hillenbrand Industries (HB) has just the product for you….too bad they don’t make wooden stakes.
  (tags: stocks)
• Toby Crabel And The Epistemology Of Trading Expertise
  (tags: trading toread)

If you're in New York Friday night please stop by and help us celebrate the 100^th episode of WallStrip:

Come join us if you are in NEW YORK this Friday evening to celebrate the actors and crew that helped build Wallstrip through 100 plus shows.

It is at 54 Bond Street, 3rd Floor at 9 pm. Food, Drinks, Cramer 2 (maybe even the real Cramer) the Vampire, The Adobe Flasher, The Doctors, and yes… Lindsay.

Selling was broad-based today but there wasn't much volume behind it. The major indices each lost at least 0.5% on the day as they hover near their 50-day moving averages. The Dow and Nasdaq closed beneath their 'fiddies' and are close to giving stochastic sell signals. The S&P is only 3 points above its 50-day moving average and it sure seems likely that it will also break that line. But I can't get too excited about playing the short side here unless volume picks up. You know what they say about shorting a dull market...

Worden had an interesting S&P chart & comment tonight. He did another of his "kiss the channel goodbye" pieces today. In other words, the index broke down out of its channel and then rallied back to touch (kiss) the bottom of that channel before rolling over. The channel he used, which is shown below is a regression channel with parameters of 100, 17, 20:

Here's my S&P chart. My focus will be on the 50-day moving average tomorrow.

The Naz is looking like a short to me but I'd like it better as a short if it breaks Monday's low on higher volume.

Looks like a retest of 800 on the Russell is around the corner.

The Nasdaq's intermediate-term trend is now down since it broke its 50-day moving average.

Home, home on the range... we're set for a small gap down, which will put the indices right in the middle of their ranges. (Yawn) Maybe some of these housing related stocks will follow-through to the downside...

On Today's Calendar:

• 10:00 -- Consumer Confidence

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• The stock is dead, long live commodities, says Jim Rogers
  The current stock market environment is similar to that of the 1970s with big trading ranges, which some people were able to exploit successfully. "But most people are not very good at this. They need to have a secular bull market
  (tags: stocks commodities investing)
• 3-30-07 Wallstrip Chat: Michael Covel
  Lindsay sits down with Michael Covel, author of “Turtle Trader” and “Trend Following”, and gets him to open the doors to the Turtle Trading Library.
  (tags: stocks video)
• For Easier Taxes, Plan Ahead
  For active traders, taxes can be difficult — and costly — if you’re not proactive. These tax-season tips can help fatten your refund check or lower your tax bill.
  (tags: taxes trading stocks investing)
• TraderFeed: Three Principles For Blogs And Businesses
  (tags: blogging for_TM)
• Why Traders Plan Trades But Don't Trade Their Plans
  (tags: trading)

Michelle B submits:

Having read a few comments at trading blogs---OK, I have read zillions---I have encountered more often than not, a frenzied, harried, stressful approach to time when one is trading. Some feel the demonic pressure crushing them as soon as the market opens; others feel enervated by its demands needling and pinpricking them throughout the trading day. Regard time, instead, as a wonderful and gracious friend, accommodating your need to focus and execute successful trades.

Specifically, I rely upon my friend, time, in three concrete ways:

I. Using Time frames

All time frames are useful and valuable--monthly, weekly, daily, hourly, thirty minute, fifteen minute, five minute, and last, but not least, one minute. My motto is: Fondle your candles. I look at my candlesticks lovingly and with great attention to details, sucking out the last bit of information they can give me. Certainly a graphic way of stating my point, but candlesticks of different time frames are worth the time upon which to ponder. Ah, time. We got it, so we need to use it well. And there they are, our helpful friends, all lined up, willing to protect our capital like dutiful soldiers, but we are too busy squandering time by not focusing and being distracted by all the action.

Often, time is used to oversee too many candidates or it is used to mind too many trades, so it is easier to just focus on one or two time frames, therefore resulting in the missing of much information. Some traders regard the one minute as dangerous, stimulating them to act foolish and blinding them to the smoother pattern of longer time frames. Others regard the longer time frames as concealing more pertinent details that only the shorter time frames can reveal. The disadvantages of one time frame is countered by the advantages of another, so using them all is truly taking advantage of those little bundles of time, with their high-quality content. In addition, looking at many time frames, will allow the beginner trader to learn the workings of the market. Checking out many time frames does not mean that you violate either your trading methodology or risk parameters.

II. Identifying, preparing for, and focusing on special time periods in the trading day

Already having discussed POT, I will address several other special times in the trading day.

1) 9:30 AM ET to 10:45 is a time of high volume, where usually a trend happens after a breakout in the opening range or consolidation.
2) 10:45 AM ET to Noon ET is when, following whatever trend that happened after the open, price will often consolidate during this time period on low to moderate volume.
3) Noon to 1:30 PM ET is when slow and steady trend continuing or reversals can happen on low to moderate volume.
4) 1:30 PM ET is when abrupt and pronounced continuation of trending or reversal on high volume can happen.
5) 2 PM ET (better known as POT) is also when abrupt and pronounced continuation of trending or reversal on high volume can happen.
6) 3 PM ET is yet again a possible time for either a high-volumed, abrupt, and pronounced continuation of trending or reversal happening.
7) 3:30 PM ET, yup, you guessed it, this particularly tricky time can trigger a very abrupt trend continuation or reversal on high volume.

III. Awareness of economic/seasonal events

It is important to know not only when earning releases are due, but also economic reports, options expirations, end of month and quarter, holidays, and seasonal times like the usual low-volume summertime.

Time is like beauty, in the sense how it can be interpreted differently in the eyes of the beholder. The above information was gleaned from actually trading the market over years. Each trader need to take the basic information and apply it to her/himself in order to make it their own so it will work equally well for them.

Michelle B submits:

Trading the second leg of two measured up legs separated by a bull flag is one my favorite trades, especially because the trade usually lasts only 30 to 60 minutes. In most cases, I will at least partially anticipate the breakout allowing me to keep a very tight stop loss.

What is noteworthy about this particular daytrade in PPL which I took Tuesday, March 27 is the smallness of the move. PPL is an electrical utility which got an upgrade premarket, and which I identified via the top gainers scan for the NYSE. Electrical utilities trading on the NYSE usually do not attract daytraders because intraday trading ranges are small. However, PPL made a new 52 week high and had high volume with a decent bid/ask spread.

Entering at 41.14 where the gently rising, one-minute 50 sma (blue line on the displayed chart) served as support and exiting at 41.46 resulted in only a .32 move. However, the stop loss was just .05, a couple pennies under the 50 sma support, so this small move packed a high R punch of 6. Because of such a small risk, I was able to trade a sizable lot resulting in a nice profit. So small can be big.

• Whole Foods (WFMI): The next Starbucks - MSN Money
  The 'emerging lifestyle' chain, known for high-quality goods and pleasant shopping environments, is on the verge of explosive growth that should double its stock price in three years.
  (tags: stocks toread)
• A Look At Kagi Charts
  This relatively unknown tool could help you find an asset's trend faster.
  (tags: stocks technicalanalysis)
• The Nintendo Wii gives NEW life to an old TREND - Gaming
  (tags: stocks)
• Stock Trends, Charts, and Commentary
  Are you letting your personal market opinion change how you read a chart? Here is the test ...
  (tags: stocks technicalanalysis)
• 3-28-07 MasterCard Incorporated (MA) | Wallstrip
  Going public and trending upwards: priceless. Making it easier to spend money with your MasterCard: also priceless.
  (tags: stocks)
• Sign of a Market Top?
  George Gilder has launched a hedge fund called the BetaZero Gilder Technology Fund.
  (tags: stocks hedgefunds)
• Looking Over The Shoulders Of A Successful Trader
  Would you be interested in peering over the shoulder of a profitable trader? one who has taken a $100,000 account and in less than three months grown it to $1.6 million?
  (tags: trading)
• Barry Ritholtz's Thoughts on Bernanke's Testimony
  This testimony makes clear (to me at least) drew precisely the wrong conclusion from the FOMC statement last week. Bernanke is now correcting that error via this speech.
  (tags: stocks economics)
• Trading And Information Processing: Why Traders "Sabotage" Themselves
  (tags: trading success Psychology toread)
• Ways to View Wikipedia on a PDA
  (tags: PDA wikipedia Reference palm Tools treo)

(Note: This will be the last regular post (watchlists & recaps) until this weekend. Look for the next recap this weekend once I'm back from New York.)

Trading was choppy & sloppy today as the market tried to digest Bernanke's comments. The bulls gave it a good try mid-day but the indices still closed near their lows for the day. Here's the intraday QQQQ chart (15 minute candles):

It's also interesting to note that Bernanke's clarified the Fed's stance on inflation and now the market has basically given back all of the post-Fed gains from last week. Here's the intraday S&P 500 chart showing the liftoff caused by the Fed decision / statement last Wednesday:

I thought I'd show the Multiple Moving Averages (MMAs) again. Here's the Nasdaq chart showing that last week's rally didn't hold long enough to flip the long-term group back to a bullish posture. I'm now on the lookout for that long-term group to spread out, showing a strengthening downtrend.

The S&P 500 closed beneath its 50 DMA and gave a stochastic sell signal. The obvious potential support level for it and the other indices is the mid point of the W-bottom made earlier this month -- around 1410 for the S&P and 2405 for the Nasdaq.

The Russell's back below 800.

Lot's of 'downgrades' today with all the moving average breaks.

The 'homies' (& their ilk) are in the news again with this FBI probe of Beazer Homes for mortgage lending fraud. So my group of homebuilders & lenders (BZH, KBH, LEN, DHI, CTX, PHM, TOL, CFC, WM, LEND, FMT, WFC...) will remain front & center on my monitors.

The S&P is set to gap under its 50-day moving average so things could get interesting today as that important technical level gets taken out. Perhaps Big Ben Bernanke can save the day. He speaks at 10:30. I'm not sure that he'll say anything market-moving but there's always that potential...

On Today's Calendar:

• 10:30 -- Crude Inventories

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• Patience Is A Trader's Virtue
  Although the best investors and traders understand the importance of patience, it is one of the most difficult skills to learn as an investor and trader.
  (tags: trading investing)
• Why I Am a Bear by Tim Knight
  The bear explains himself
  (tags: stocks)
• Hillenbrand Industries (HB) | Wallstrip
  Whether you’re checking in or checking out, Hillenbrand Industries (HB) has just the product for you….too bad they don’t make wooden stakes.
  (tags: stocks)
• Toby Crabel And The Epistemology Of Trading Expertise
  (tags: trading toread)

If you're in New York Friday night please stop by and help us celebrate the 100^th episode of WallStrip:

Come join us if you are in NEW YORK this Friday evening to celebrate the actors and crew that helped build Wallstrip through 100 plus shows.

It is at 54 Bond Street, 3rd Floor at 9 pm. Food, Drinks, Cramer 2 (maybe even the real Cramer) the Vampire, The Adobe Flasher, The Doctors, and yes… Lindsay.

Selling was broad-based today but there wasn't much volume behind it. The major indices each lost at least 0.5% on the day as they hover near their 50-day moving averages. The Dow and Nasdaq closed beneath their 'fiddies' and are close to giving stochastic sell signals. The S&P is only 3 points above its 50-day moving average and it sure seems likely that it will also break that line. But I can't get too excited about playing the short side here unless volume picks up. You know what they say about shorting a dull market...

Worden had an interesting S&P chart & comment tonight. He did another of his "kiss the channel goodbye" pieces today. In other words, the index broke down out of its channel and then rallied back to touch (kiss) the bottom of that channel before rolling over. The channel he used, which is shown below is a regression channel with parameters of 100, 17, 20:

Here's my S&P chart. My focus will be on the 50-day moving average tomorrow.

The Naz is looking like a short to me but I'd like it better as a short if it breaks Monday's low on higher volume.

Looks like a retest of 800 on the Russell is around the corner.

The Nasdaq's intermediate-term trend is now down since it broke its 50-day moving average.

Home, home on the range... we're set for a small gap down, which will put the indices right in the middle of their ranges. (Yawn) Maybe some of these housing related stocks will follow-through to the downside...

On Today's Calendar:

• 10:00 -- Consumer Confidence

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• The stock is dead, long live commodities, says Jim Rogers
  The current stock market environment is similar to that of the 1970s with big trading ranges, which some people were able to exploit successfully. "But most people are not very good at this. They need to have a secular bull market
  (tags: stocks commodities investing)
• 3-30-07 Wallstrip Chat: Michael Covel
  Lindsay sits down with Michael Covel, author of “Turtle Trader” and “Trend Following”, and gets him to open the doors to the Turtle Trading Library.
  (tags: stocks video)
• For Easier Taxes, Plan Ahead
  For active traders, taxes can be difficult — and costly — if you’re not proactive. These tax-season tips can help fatten your refund check or lower your tax bill.
  (tags: taxes trading stocks investing)
• TraderFeed: Three Principles For Blogs And Businesses
  (tags: blogging for_TM)
• Why Traders Plan Trades But Don't Trade Their Plans
  (tags: trading)

Michelle B submits:

Having read a few comments at trading blogs---OK, I have read zillions---I have encountered more often than not, a frenzied, harried, stressful approach to time when one is trading. Some feel the demonic pressure crushing them as soon as the market opens; others feel enervated by its demands needling and pinpricking them throughout the trading day. Regard time, instead, as a wonderful and gracious friend, accommodating your need to focus and execute successful trades.

Specifically, I rely upon my friend, time, in three concrete ways:

I. Using Time frames

All time frames are useful and valuable--monthly, weekly, daily, hourly, thirty minute, fifteen minute, five minute, and last, but not least, one minute. My motto is: Fondle your candles. I look at my candlesticks lovingly and with great attention to details, sucking out the last bit of information they can give me. Certainly a graphic way of stating my point, but candlesticks of different time frames are worth the time upon which to ponder. Ah, time. We got it, so we need to use it well. And there they are, our helpful friends, all lined up, willing to protect our capital like dutiful soldiers, but we are too busy squandering time by not focusing and being distracted by all the action.

Often, time is used to oversee too many candidates or it is used to mind too many trades, so it is easier to just focus on one or two time frames, therefore resulting in the missing of much information. Some traders regard the one minute as dangerous, stimulating them to act foolish and blinding them to the smoother pattern of longer time frames. Others regard the longer time frames as concealing more pertinent details that only the shorter time frames can reveal. The disadvantages of one time frame is countered by the advantages of another, so using them all is truly taking advantage of those little bundles of time, with their high-quality content. In addition, looking at many time frames, will allow the beginner trader to learn the workings of the market. Checking out many time frames does not mean that you violate either your trading methodology or risk parameters.

II. Identifying, preparing for, and focusing on special time periods in the trading day

Already having discussed POT, I will address several other special times in the trading day.

1) 9:30 AM ET to 10:45 is a time of high volume, where usually a trend happens after a breakout in the opening range or consolidation.
2) 10:45 AM ET to Noon ET is when, following whatever trend that happened after the open, price will often consolidate during this time period on low to moderate volume.
3) Noon to 1:30 PM ET is when slow and steady trend continuing or reversals can happen on low to moderate volume.
4) 1:30 PM ET is when abrupt and pronounced continuation of trending or reversal on high volume can happen.
5) 2 PM ET (better known as POT) is also when abrupt and pronounced continuation of trending or reversal on high volume can happen.
6) 3 PM ET is yet again a possible time for either a high-volumed, abrupt, and pronounced continuation of trending or reversal happening.
7) 3:30 PM ET, yup, you guessed it, this particularly tricky time can trigger a very abrupt trend continuation or reversal on high volume.

III. Awareness of economic/seasonal events

It is important to know not only when earning releases are due, but also economic reports, options expirations, end of month and quarter, holidays, and seasonal times like the usual low-volume summertime.

Time is like beauty, in the sense how it can be interpreted differently in the eyes of the beholder. The above information was gleaned from actually trading the market over years. Each trader need to take the basic information and apply it to her/himself in order to make it their own so it will work equally well for them.

Michelle B submits:

Trading the second leg of two measured up legs separated by a bull flag is one my favorite trades, especially because the trade usually lasts only 30 to 60 minutes. In most cases, I will at least partially anticipate the breakout allowing me to keep a very tight stop loss.

What is noteworthy about this particular daytrade in PPL which I took Tuesday, March 27 is the smallness of the move. PPL is an electrical utility which got an upgrade premarket, and which I identified via the top gainers scan for the NYSE. Electrical utilities trading on the NYSE usually do not attract daytraders because intraday trading ranges are small. However, PPL made a new 52 week high and had high volume with a decent bid/ask spread.

Entering at 41.14 where the gently rising, one-minute 50 sma (blue line on the displayed chart) served as support and exiting at 41.46 resulted in only a .32 move. However, the stop loss was just .05, a couple pennies under the 50 sma support, so this small move packed a high R punch of 6. Because of such a small risk, I was able to trade a sizable lot resulting in a nice profit. So small can be big.

• Whole Foods (WFMI): The next Starbucks - MSN Money
  The 'emerging lifestyle' chain, known for high-quality goods and pleasant shopping environments, is on the verge of explosive growth that should double its stock price in three years.
  (tags: stocks toread)
• A Look At Kagi Charts
  This relatively unknown tool could help you find an asset's trend faster.
  (tags: stocks technicalanalysis)
• The Nintendo Wii gives NEW life to an old TREND - Gaming
  (tags: stocks)
• Stock Trends, Charts, and Commentary
  Are you letting your personal market opinion change how you read a chart? Here is the test ...
  (tags: stocks technicalanalysis)
• 3-28-07 MasterCard Incorporated (MA) | Wallstrip
  Going public and trending upwards: priceless. Making it easier to spend money with your MasterCard: also priceless.
  (tags: stocks)
• Sign of a Market Top?
  George Gilder has launched a hedge fund called the BetaZero Gilder Technology Fund.
  (tags: stocks hedgefunds)
• Looking Over The Shoulders Of A Successful Trader
  Would you be interested in peering over the shoulder of a profitable trader? one who has taken a $100,000 account and in less than three months grown it to $1.6 million?
  (tags: trading)
• Barry Ritholtz's Thoughts on Bernanke's Testimony
  This testimony makes clear (to me at least) drew precisely the wrong conclusion from the FOMC statement last week. Bernanke is now correcting that error via this speech.
  (tags: stocks economics)
• Trading And Information Processing: Why Traders "Sabotage" Themselves
  (tags: trading success Psychology toread)
• Ways to View Wikipedia on a PDA
  (tags: PDA wikipedia Reference palm Tools treo)

(Note: This will be the last regular post (watchlists & recaps) until this weekend. Look for the next recap this weekend once I'm back from New York.)

Trading was choppy & sloppy today as the market tried to digest Bernanke's comments. The bulls gave it a good try mid-day but the indices still closed near their lows for the day. Here's the intraday QQQQ chart (15 minute candles):

It's also interesting to note that Bernanke's clarified the Fed's stance on inflation and now the market has basically given back all of the post-Fed gains from last week. Here's the intraday S&P 500 chart showing the liftoff caused by the Fed decision / statement last Wednesday:

I thought I'd show the Multiple Moving Averages (MMAs) again. Here's the Nasdaq chart showing that last week's rally didn't hold long enough to flip the long-term group back to a bullish posture. I'm now on the lookout for that long-term group to spread out, showing a strengthening downtrend.

The S&P 500 closed beneath its 50 DMA and gave a stochastic sell signal. The obvious potential support level for it and the other indices is the mid point of the W-bottom made earlier this month -- around 1410 for the S&P and 2405 for the Nasdaq.

The Russell's back below 800.

Lot's of 'downgrades' today with all the moving average breaks.

The 'homies' (& their ilk) are in the news again with this FBI probe of Beazer Homes for mortgage lending fraud. So my group of homebuilders & lenders (BZH, KBH, LEN, DHI, CTX, PHM, TOL, CFC, WM, LEND, FMT, WFC...) will remain front & center on my monitors.

The S&P is set to gap under its 50-day moving average so things could get interesting today as that important technical level gets taken out. Perhaps Big Ben Bernanke can save the day. He speaks at 10:30. I'm not sure that he'll say anything market-moving but there's always that potential...

On Today's Calendar:

• 10:30 -- Crude Inventories

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• Patience Is A Trader's Virtue
  Although the best investors and traders understand the importance of patience, it is one of the most difficult skills to learn as an investor and trader.
  (tags: trading investing)
• Why I Am a Bear by Tim Knight
  The bear explains himself
  (tags: stocks)
• Hillenbrand Industries (HB) | Wallstrip
  Whether you’re checking in or checking out, Hillenbrand Industries (HB) has just the product for you….too bad they don’t make wooden stakes.
  (tags: stocks)
• Toby Crabel And The Epistemology Of Trading Expertise
  (tags: trading toread)

If you're in New York Friday night please stop by and help us celebrate the 100^th episode of WallStrip:

Come join us if you are in NEW YORK this Friday evening to celebrate the actors and crew that helped build Wallstrip through 100 plus shows.

It is at 54 Bond Street, 3rd Floor at 9 pm. Food, Drinks, Cramer 2 (maybe even the real Cramer) the Vampire, The Adobe Flasher, The Doctors, and yes… Lindsay.

Selling was broad-based today but there wasn't much volume behind it. The major indices each lost at least 0.5% on the day as they hover near their 50-day moving averages. The Dow and Nasdaq closed beneath their 'fiddies' and are close to giving stochastic sell signals. The S&P is only 3 points above its 50-day moving average and it sure seems likely that it will also break that line. But I can't get too excited about playing the short side here unless volume picks up. You know what they say about shorting a dull market...

Worden had an interesting S&P chart & comment tonight. He did another of his "kiss the channel goodbye" pieces today. In other words, the index broke down out of its channel and then rallied back to touch (kiss) the bottom of that channel before rolling over. The channel he used, which is shown below is a regression channel with parameters of 100, 17, 20:

Here's my S&P chart. My focus will be on the 50-day moving average tomorrow.

The Naz is looking like a short to me but I'd like it better as a short if it breaks Monday's low on higher volume.

Looks like a retest of 800 on the Russell is around the corner.

The Nasdaq's intermediate-term trend is now down since it broke its 50-day moving average.

Home, home on the range... we're set for a small gap down, which will put the indices right in the middle of their ranges. (Yawn) Maybe some of these housing related stocks will follow-through to the downside...

On Today's Calendar:

• 10:00 -- Consumer Confidence

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• The stock is dead, long live commodities, says Jim Rogers
  The current stock market environment is similar to that of the 1970s with big trading ranges, which some people were able to exploit successfully. "But most people are not very good at this. They need to have a secular bull market
  (tags: stocks commodities investing)
• 3-30-07 Wallstrip Chat: Michael Covel
  Lindsay sits down with Michael Covel, author of “Turtle Trader” and “Trend Following”, and gets him to open the doors to the Turtle Trading Library.
  (tags: stocks video)
• For Easier Taxes, Plan Ahead
  For active traders, taxes can be difficult — and costly — if you’re not proactive. These tax-season tips can help fatten your refund check or lower your tax bill.
  (tags: taxes trading stocks investing)
• TraderFeed: Three Principles For Blogs And Businesses
  (tags: blogging for_TM)
• Why Traders Plan Trades But Don't Trade Their Plans
  (tags: trading)

Michelle B submits:

Having read a few comments at trading blogs---OK, I have read zillions---I have encountered more often than not, a frenzied, harried, stressful approach to time when one is trading. Some feel the demonic pressure crushing them as soon as the market opens; others feel enervated by its demands needling and pinpricking them throughout the trading day. Regard time, instead, as a wonderful and gracious friend, accommodating your need to focus and execute successful trades.

Specifically, I rely upon my friend, time, in three concrete ways:

I. Using Time frames

All time frames are useful and valuable--monthly, weekly, daily, hourly, thirty minute, fifteen minute, five minute, and last, but not least, one minute. My motto is: Fondle your candles. I look at my candlesticks lovingly and with great attention to details, sucking out the last bit of information they can give me. Certainly a graphic way of stating my point, but candlesticks of different time frames are worth the time upon which to ponder. Ah, time. We got it, so we need to use it well. And there they are, our helpful friends, all lined up, willing to protect our capital like dutiful soldiers, but we are too busy squandering time by not focusing and being distracted by all the action.

Often, time is used to oversee too many candidates or it is used to mind too many trades, so it is easier to just focus on one or two time frames, therefore resulting in the missing of much information. Some traders regard the one minute as dangerous, stimulating them to act foolish and blinding them to the smoother pattern of longer time frames. Others regard the longer time frames as concealing more pertinent details that only the shorter time frames can reveal. The disadvantages of one time frame is countered by the advantages of another, so using them all is truly taking advantage of those little bundles of time, with their high-quality content. In addition, looking at many time frames, will allow the beginner trader to learn the workings of the market. Checking out many time frames does not mean that you violate either your trading methodology or risk parameters.

II. Identifying, preparing for, and focusing on special time periods in the trading day

Already having discussed POT, I will address several other special times in the trading day.

1) 9:30 AM ET to 10:45 is a time of high volume, where usually a trend happens after a breakout in the opening range or consolidation.
2) 10:45 AM ET to Noon ET is when, following whatever trend that happened after the open, price will often consolidate during this time period on low to moderate volume.
3) Noon to 1:30 PM ET is when slow and steady trend continuing or reversals can happen on low to moderate volume.
4) 1:30 PM ET is when abrupt and pronounced continuation of trending or reversal on high volume can happen.
5) 2 PM ET (better known as POT) is also when abrupt and pronounced continuation of trending or reversal on high volume can happen.
6) 3 PM ET is yet again a possible time for either a high-volumed, abrupt, and pronounced continuation of trending or reversal happening.
7) 3:30 PM ET, yup, you guessed it, this particularly tricky time can trigger a very abrupt trend continuation or reversal on high volume.

III. Awareness of economic/seasonal events

It is important to know not only when earning releases are due, but also economic reports, options expirations, end of month and quarter, holidays, and seasonal times like the usual low-volume summertime.

Time is like beauty, in the sense how it can be interpreted differently in the eyes of the beholder. The above information was gleaned from actually trading the market over years. Each trader need to take the basic information and apply it to her/himself in order to make it their own so it will work equally well for them.

Michelle B submits:

Trading the second leg of two measured up legs separated by a bull flag is one my favorite trades, especially because the trade usually lasts only 30 to 60 minutes. In most cases, I will at least partially anticipate the breakout allowing me to keep a very tight stop loss.

What is noteworthy about this particular daytrade in PPL which I took Tuesday, March 27 is the smallness of the move. PPL is an electrical utility which got an upgrade premarket, and which I identified via the top gainers scan for the NYSE. Electrical utilities trading on the NYSE usually do not attract daytraders because intraday trading ranges are small. However, PPL made a new 52 week high and had high volume with a decent bid/ask spread.

Entering at 41.14 where the gently rising, one-minute 50 sma (blue line on the displayed chart) served as support and exiting at 41.46 resulted in only a .32 move. However, the stop loss was just .05, a couple pennies under the 50 sma support, so this small move packed a high R punch of 6. Because of such a small risk, I was able to trade a sizable lot resulting in a nice profit. So small can be big.

• Whole Foods (WFMI): The next Starbucks - MSN Money
  The 'emerging lifestyle' chain, known for high-quality goods and pleasant shopping environments, is on the verge of explosive growth that should double its stock price in three years.
  (tags: stocks toread)
• A Look At Kagi Charts
  This relatively unknown tool could help you find an asset's trend faster.
  (tags: stocks technicalanalysis)
• The Nintendo Wii gives NEW life to an old TREND - Gaming
  (tags: stocks)
• Stock Trends, Charts, and Commentary
  Are you letting your personal market opinion change how you read a chart? Here is the test ...
  (tags: stocks technicalanalysis)
• 3-28-07 MasterCard Incorporated (MA) | Wallstrip
  Going public and trending upwards: priceless. Making it easier to spend money with your MasterCard: also priceless.
  (tags: stocks)
• Sign of a Market Top?
  George Gilder has launched a hedge fund called the BetaZero Gilder Technology Fund.
  (tags: stocks hedgefunds)
• Looking Over The Shoulders Of A Successful Trader
  Would you be interested in peering over the shoulder of a profitable trader? one who has taken a $100,000 account and in less than three months grown it to $1.6 million?
  (tags: trading)
• Barry Ritholtz's Thoughts on Bernanke's Testimony
  This testimony makes clear (to me at least) drew precisely the wrong conclusion from the FOMC statement last week. Bernanke is now correcting that error via this speech.
  (tags: stocks economics)
• Trading And Information Processing: Why Traders "Sabotage" Themselves
  (tags: trading success Psychology toread)
• Ways to View Wikipedia on a PDA
  (tags: PDA wikipedia Reference palm Tools treo)

(Note: This will be the last regular post (watchlists & recaps) until this weekend. Look for the next recap this weekend once I'm back from New York.)

Trading was choppy & sloppy today as the market tried to digest Bernanke's comments. The bulls gave it a good try mid-day but the indices still closed near their lows for the day. Here's the intraday QQQQ chart (15 minute candles):

It's also interesting to note that Bernanke's clarified the Fed's stance on inflation and now the market has basically given back all of the post-Fed gains from last week. Here's the intraday S&P 500 chart showing the liftoff caused by the Fed decision / statement last Wednesday:

I thought I'd show the Multiple Moving Averages (MMAs) again. Here's the Nasdaq chart showing that last week's rally didn't hold long enough to flip the long-term group back to a bullish posture. I'm now on the lookout for that long-term group to spread out, showing a strengthening downtrend.

The S&P 500 closed beneath its 50 DMA and gave a stochastic sell signal. The obvious potential support level for it and the other indices is the mid point of the W-bottom made earlier this month -- around 1410 for the S&P and 2405 for the Nasdaq.

The Russell's back below 800.

Lot's of 'downgrades' today with all the moving average breaks.

The 'homies' (& their ilk) are in the news again with this FBI probe of Beazer Homes for mortgage lending fraud. So my group of homebuilders & lenders (BZH, KBH, LEN, DHI, CTX, PHM, TOL, CFC, WM, LEND, FMT, WFC...) will remain front & center on my monitors.

The S&P is set to gap under its 50-day moving average so things could get interesting today as that important technical level gets taken out. Perhaps Big Ben Bernanke can save the day. He speaks at 10:30. I'm not sure that he'll say anything market-moving but there's always that potential...

On Today's Calendar:

• 10:30 -- Crude Inventories

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• Patience Is A Trader's Virtue
  Although the best investors and traders understand the importance of patience, it is one of the most difficult skills to learn as an investor and trader.
  (tags: trading investing)
• Why I Am a Bear by Tim Knight
  The bear explains himself
  (tags: stocks)
• Hillenbrand Industries (HB) | Wallstrip
  Whether you’re checking in or checking out, Hillenbrand Industries (HB) has just the product for you….too bad they don’t make wooden stakes.
  (tags: stocks)
• Toby Crabel And The Epistemology Of Trading Expertise
  (tags: trading toread)

If you're in New York Friday night please stop by and help us celebrate the 100^th episode of WallStrip:

Come join us if you are in NEW YORK this Friday evening to celebrate the actors and crew that helped build Wallstrip through 100 plus shows.

It is at 54 Bond Street, 3rd Floor at 9 pm. Food, Drinks, Cramer 2 (maybe even the real Cramer) the Vampire, The Adobe Flasher, The Doctors, and yes… Lindsay.

Selling was broad-based today but there wasn't much volume behind it. The major indices each lost at least 0.5% on the day as they hover near their 50-day moving averages. The Dow and Nasdaq closed beneath their 'fiddies' and are close to giving stochastic sell signals. The S&P is only 3 points above its 50-day moving average and it sure seems likely that it will also break that line. But I can't get too excited about playing the short side here unless volume picks up. You know what they say about shorting a dull market...

Worden had an interesting S&P chart & comment tonight. He did another of his "kiss the channel goodbye" pieces today. In other words, the index broke down out of its channel and then rallied back to touch (kiss) the bottom of that channel before rolling over. The channel he used, which is shown below is a regression channel with parameters of 100, 17, 20:

Here's my S&P chart. My focus will be on the 50-day moving average tomorrow.

The Naz is looking like a short to me but I'd like it better as a short if it breaks Monday's low on higher volume.

Looks like a retest of 800 on the Russell is around the corner.

The Nasdaq's intermediate-term trend is now down since it broke its 50-day moving average.

Home, home on the range... we're set for a small gap down, which will put the indices right in the middle of their ranges. (Yawn) Maybe some of these housing related stocks will follow-through to the downside...

On Today's Calendar:

• 10:00 -- Consumer Confidence

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• The stock is dead, long live commodities, says Jim Rogers
  The current stock market environment is similar to that of the 1970s with big trading ranges, which some people were able to exploit successfully. "But most people are not very good at this. They need to have a secular bull market
  (tags: stocks commodities investing)
• 3-30-07 Wallstrip Chat: Michael Covel
  Lindsay sits down with Michael Covel, author of “Turtle Trader” and “Trend Following”, and gets him to open the doors to the Turtle Trading Library.
  (tags: stocks video)
• For Easier Taxes, Plan Ahead
  For active traders, taxes can be difficult — and costly — if you’re not proactive. These tax-season tips can help fatten your refund check or lower your tax bill.
  (tags: taxes trading stocks investing)
• TraderFeed: Three Principles For Blogs And Businesses
  (tags: blogging for_TM)
• Why Traders Plan Trades But Don't Trade Their Plans
  (tags: trading)

Michelle B submits:

Having read a few comments at trading blogs---OK, I have read zillions---I have encountered more often than not, a frenzied, harried, stressful approach to time when one is trading. Some feel the demonic pressure crushing them as soon as the market opens; others feel enervated by its demands needling and pinpricking them throughout the trading day. Regard time, instead, as a wonderful and gracious friend, accommodating your need to focus and execute successful trades.

Specifically, I rely upon my friend, time, in three concrete ways:

I. Using Time frames

All time frames are useful and valuable--monthly, weekly, daily, hourly, thirty minute, fifteen minute, five minute, and last, but not least, one minute. My motto is: Fondle your candles. I look at my candlesticks lovingly and with great attention to details, sucking out the last bit of information they can give me. Certainly a graphic way of stating my point, but candlesticks of different time frames are worth the time upon which to ponder. Ah, time. We got it, so we need to use it well. And there they are, our helpful friends, all lined up, willing to protect our capital like dutiful soldiers, but we are too busy squandering time by not focusing and being distracted by all the action.

Often, time is used to oversee too many candidates or it is used to mind too many trades, so it is easier to just focus on one or two time frames, therefore resulting in the missing of much information. Some traders regard the one minute as dangerous, stimulating them to act foolish and blinding them to the smoother pattern of longer time frames. Others regard the longer time frames as concealing more pertinent details that only the shorter time frames can reveal. The disadvantages of one time frame is countered by the advantages of another, so using them all is truly taking advantage of those little bundles of time, with their high-quality content. In addition, looking at many time frames, will allow the beginner trader to learn the workings of the market. Checking out many time frames does not mean that you violate either your trading methodology or risk parameters.

II. Identifying, preparing for, and focusing on special time periods in the trading day

Already having discussed POT, I will address several other special times in the trading day.

1) 9:30 AM ET to 10:45 is a time of high volume, where usually a trend happens after a breakout in the opening range or consolidation.
2) 10:45 AM ET to Noon ET is when, following whatever trend that happened after the open, price will often consolidate during this time period on low to moderate volume.
3) Noon to 1:30 PM ET is when slow and steady trend continuing or reversals can happen on low to moderate volume.
4) 1:30 PM ET is when abrupt and pronounced continuation of trending or reversal on high volume can happen.
5) 2 PM ET (better known as POT) is also when abrupt and pronounced continuation of trending or reversal on high volume can happen.
6) 3 PM ET is yet again a possible time for either a high-volumed, abrupt, and pronounced continuation of trending or reversal happening.
7) 3:30 PM ET, yup, you guessed it, this particularly tricky time can trigger a very abrupt trend continuation or reversal on high volume.

III. Awareness of economic/seasonal events

It is important to know not only when earning releases are due, but also economic reports, options expirations, end of month and quarter, holidays, and seasonal times like the usual low-volume summertime.

Time is like beauty, in the sense how it can be interpreted differently in the eyes of the beholder. The above information was gleaned from actually trading the market over years. Each trader need to take the basic information and apply it to her/himself in order to make it their own so it will work equally well for them.

Michelle B submits:

Trading the second leg of two measured up legs separated by a bull flag is one my favorite trades, especially because the trade usually lasts only 30 to 60 minutes. In most cases, I will at least partially anticipate the breakout allowing me to keep a very tight stop loss.

What is noteworthy about this particular daytrade in PPL which I took Tuesday, March 27 is the smallness of the move. PPL is an electrical utility which got an upgrade premarket, and which I identified via the top gainers scan for the NYSE. Electrical utilities trading on the NYSE usually do not attract daytraders because intraday trading ranges are small. However, PPL made a new 52 week high and had high volume with a decent bid/ask spread.

Entering at 41.14 where the gently rising, one-minute 50 sma (blue line on the displayed chart) served as support and exiting at 41.46 resulted in only a .32 move. However, the stop loss was just .05, a couple pennies under the 50 sma support, so this small move packed a high R punch of 6. Because of such a small risk, I was able to trade a sizable lot resulting in a nice profit. So small can be big.

• Whole Foods (WFMI): The next Starbucks - MSN Money
  The 'emerging lifestyle' chain, known for high-quality goods and pleasant shopping environments, is on the verge of explosive growth that should double its stock price in three years.
  (tags: stocks toread)
• A Look At Kagi Charts
  This relatively unknown tool could help you find an asset's trend faster.
  (tags: stocks technicalanalysis)
• The Nintendo Wii gives NEW life to an old TREND - Gaming
  (tags: stocks)
• Stock Trends, Charts, and Commentary
  Are you letting your personal market opinion change how you read a chart? Here is the test ...
  (tags: stocks technicalanalysis)
• 3-28-07 MasterCard Incorporated (MA) | Wallstrip
  Going public and trending upwards: priceless. Making it easier to spend money with your MasterCard: also priceless.
  (tags: stocks)
• Sign of a Market Top?
  George Gilder has launched a hedge fund called the BetaZero Gilder Technology Fund.
  (tags: stocks hedgefunds)
• Looking Over The Shoulders Of A Successful Trader
  Would you be interested in peering over the shoulder of a profitable trader? one who has taken a $100,000 account and in less than three months grown it to $1.6 million?
  (tags: trading)
• Barry Ritholtz's Thoughts on Bernanke's Testimony
  This testimony makes clear (to me at least) drew precisely the wrong conclusion from the FOMC statement last week. Bernanke is now correcting that error via this speech.
  (tags: stocks economics)
• Trading And Information Processing: Why Traders "Sabotage" Themselves
  (tags: trading success Psychology toread)
• Ways to View Wikipedia on a PDA
  (tags: PDA wikipedia Reference palm Tools treo)

(Note: This will be the last regular post (watchlists & recaps) until this weekend. Look for the next recap this weekend once I'm back from New York.)

Trading was choppy & sloppy today as the market tried to digest Bernanke's comments. The bulls gave it a good try mid-day but the indices still closed near their lows for the day. Here's the intraday QQQQ chart (15 minute candles):

It's also interesting to note that Bernanke's clarified the Fed's stance on inflation and now the market has basically given back all of the post-Fed gains from last week. Here's the intraday S&P 500 chart showing the liftoff caused by the Fed decision / statement last Wednesday:

I thought I'd show the Multiple Moving Averages (MMAs) again. Here's the Nasdaq chart showing that last week's rally didn't hold long enough to flip the long-term group back to a bullish posture. I'm now on the lookout for that long-term group to spread out, showing a strengthening downtrend.

The S&P 500 closed beneath its 50 DMA and gave a stochastic sell signal. The obvious potential support level for it and the other indices is the mid point of the W-bottom made earlier this month -- around 1410 for the S&P and 2405 for the Nasdaq.

The Russell's back below 800.

Lot's of 'downgrades' today with all the moving average breaks.

The 'homies' (& their ilk) are in the news again with this FBI probe of Beazer Homes for mortgage lending fraud. So my group of homebuilders & lenders (BZH, KBH, LEN, DHI, CTX, PHM, TOL, CFC, WM, LEND, FMT, WFC...) will remain front & center on my monitors.

The S&P is set to gap under its 50-day moving average so things could get interesting today as that important technical level gets taken out. Perhaps Big Ben Bernanke can save the day. He speaks at 10:30. I'm not sure that he'll say anything market-moving but there's always that potential...

On Today's Calendar:

• 10:30 -- Crude Inventories

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• Patience Is A Trader's Virtue
  Although the best investors and traders understand the importance of patience, it is one of the most difficult skills to learn as an investor and trader.
  (tags: trading investing)
• Why I Am a Bear by Tim Knight
  The bear explains himself
  (tags: stocks)
• Hillenbrand Industries (HB) | Wallstrip
  Whether you’re checking in or checking out, Hillenbrand Industries (HB) has just the product for you….too bad they don’t make wooden stakes.
  (tags: stocks)
• Toby Crabel And The Epistemology Of Trading Expertise
  (tags: trading toread)

If you're in New York Friday night please stop by and help us celebrate the 100^th episode of WallStrip:

Come join us if you are in NEW YORK this Friday evening to celebrate the actors and crew that helped build Wallstrip through 100 plus shows.

It is at 54 Bond Street, 3rd Floor at 9 pm. Food, Drinks, Cramer 2 (maybe even the real Cramer) the Vampire, The Adobe Flasher, The Doctors, and yes… Lindsay.

Selling was broad-based today but there wasn't much volume behind it. The major indices each lost at least 0.5% on the day as they hover near their 50-day moving averages. The Dow and Nasdaq closed beneath their 'fiddies' and are close to giving stochastic sell signals. The S&P is only 3 points above its 50-day moving average and it sure seems likely that it will also break that line. But I can't get too excited about playing the short side here unless volume picks up. You know what they say about shorting a dull market...

Worden had an interesting S&P chart & comment tonight. He did another of his "kiss the channel goodbye" pieces today. In other words, the index broke down out of its channel and then rallied back to touch (kiss) the bottom of that channel before rolling over. The channel he used, which is shown below is a regression channel with parameters of 100, 17, 20:

Here's my S&P chart. My focus will be on the 50-day moving average tomorrow.

The Naz is looking like a short to me but I'd like it better as a short if it breaks Monday's low on higher volume.

Looks like a retest of 800 on the Russell is around the corner.

The Nasdaq's intermediate-term trend is now down since it broke its 50-day moving average.

Home, home on the range... we're set for a small gap down, which will put the indices right in the middle of their ranges. (Yawn) Maybe some of these housing related stocks will follow-through to the downside...

On Today's Calendar:

• 10:00 -- Consumer Confidence

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• The stock is dead, long live commodities, says Jim Rogers
  The current stock market environment is similar to that of the 1970s with big trading ranges, which some people were able to exploit successfully. "But most people are not very good at this. They need to have a secular bull market
  (tags: stocks commodities investing)
• 3-30-07 Wallstrip Chat: Michael Covel
  Lindsay sits down with Michael Covel, author of “Turtle Trader” and “Trend Following”, and gets him to open the doors to the Turtle Trading Library.
  (tags: stocks video)
• For Easier Taxes, Plan Ahead
  For active traders, taxes can be difficult — and costly — if you’re not proactive. These tax-season tips can help fatten your refund check or lower your tax bill.
  (tags: taxes trading stocks investing)
• TraderFeed: Three Principles For Blogs And Businesses
  (tags: blogging for_TM)
• Why Traders Plan Trades But Don't Trade Their Plans
  (tags: trading)

Michelle B submits:

Having read a few comments at trading blogs---OK, I have read zillions---I have encountered more often than not, a frenzied, harried, stressful approach to time when one is trading. Some feel the demonic pressure crushing them as soon as the market opens; others feel enervated by its demands needling and pinpricking them throughout the trading day. Regard time, instead, as a wonderful and gracious friend, accommodating your need to focus and execute successful trades.

Specifically, I rely upon my friend, time, in three concrete ways:

I. Using Time frames

All time frames are useful and valuable--monthly, weekly, daily, hourly, thirty minute, fifteen minute, five minute, and last, but not least, one minute. My motto is: Fondle your candles. I look at my candlesticks lovingly and with great attention to details, sucking out the last bit of information they can give me. Certainly a graphic way of stating my point, but candlesticks of different time frames are worth the time upon which to ponder. Ah, time. We got it, so we need to use it well. And there they are, our helpful friends, all lined up, willing to protect our capital like dutiful soldiers, but we are too busy squandering time by not focusing and being distracted by all the action.

Often, time is used to oversee too many candidates or it is used to mind too many trades, so it is easier to just focus on one or two time frames, therefore resulting in the missing of much information. Some traders regard the one minute as dangerous, stimulating them to act foolish and blinding them to the smoother pattern of longer time frames. Others regard the longer time frames as concealing more pertinent details that only the shorter time frames can reveal. The disadvantages of one time frame is countered by the advantages of another, so using them all is truly taking advantage of those little bundles of time, with their high-quality content. In addition, looking at many time frames, will allow the beginner trader to learn the workings of the market. Checking out many time frames does not mean that you violate either your trading methodology or risk parameters.

II. Identifying, preparing for, and focusing on special time periods in the trading day

Already having discussed POT, I will address several other special times in the trading day.

1) 9:30 AM ET to 10:45 is a time of high volume, where usually a trend happens after a breakout in the opening range or consolidation.
2) 10:45 AM ET to Noon ET is when, following whatever trend that happened after the open, price will often consolidate during this time period on low to moderate volume.
3) Noon to 1:30 PM ET is when slow and steady trend continuing or reversals can happen on low to moderate volume.
4) 1:30 PM ET is when abrupt and pronounced continuation of trending or reversal on high volume can happen.
5) 2 PM ET (better known as POT) is also when abrupt and pronounced continuation of trending or reversal on high volume can happen.
6) 3 PM ET is yet again a possible time for either a high-volumed, abrupt, and pronounced continuation of trending or reversal happening.
7) 3:30 PM ET, yup, you guessed it, this particularly tricky time can trigger a very abrupt trend continuation or reversal on high volume.

III. Awareness of economic/seasonal events

It is important to know not only when earning releases are due, but also economic reports, options expirations, end of month and quarter, holidays, and seasonal times like the usual low-volume summertime.

Time is like beauty, in the sense how it can be interpreted differently in the eyes of the beholder. The above information was gleaned from actually trading the market over years. Each trader need to take the basic information and apply it to her/himself in order to make it their own so it will work equally well for them.

Michelle B submits:

Trading the second leg of two measured up legs separated by a bull flag is one my favorite trades, especially because the trade usually lasts only 30 to 60 minutes. In most cases, I will at least partially anticipate the breakout allowing me to keep a very tight stop loss.

What is noteworthy about this particular daytrade in PPL which I took Tuesday, March 27 is the smallness of the move. PPL is an electrical utility which got an upgrade premarket, and which I identified via the top gainers scan for the NYSE. Electrical utilities trading on the NYSE usually do not attract daytraders because intraday trading ranges are small. However, PPL made a new 52 week high and had high volume with a decent bid/ask spread.

Entering at 41.14 where the gently rising, one-minute 50 sma (blue line on the displayed chart) served as support and exiting at 41.46 resulted in only a .32 move. However, the stop loss was just .05, a couple pennies under the 50 sma support, so this small move packed a high R punch of 6. Because of such a small risk, I was able to trade a sizable lot resulting in a nice profit. So small can be big.

• Whole Foods (WFMI): The next Starbucks - MSN Money
  The 'emerging lifestyle' chain, known for high-quality goods and pleasant shopping environments, is on the verge of explosive growth that should double its stock price in three years.
  (tags: stocks toread)
• A Look At Kagi Charts
  This relatively unknown tool could help you find an asset's trend faster.
  (tags: stocks technicalanalysis)
• The Nintendo Wii gives NEW life to an old TREND - Gaming
  (tags: stocks)
• Stock Trends, Charts, and Commentary
  Are you letting your personal market opinion change how you read a chart? Here is the test ...
  (tags: stocks technicalanalysis)
• 3-28-07 MasterCard Incorporated (MA) | Wallstrip
  Going public and trending upwards: priceless. Making it easier to spend money with your MasterCard: also priceless.
  (tags: stocks)
• Sign of a Market Top?
  George Gilder has launched a hedge fund called the BetaZero Gilder Technology Fund.
  (tags: stocks hedgefunds)
• Looking Over The Shoulders Of A Successful Trader
  Would you be interested in peering over the shoulder of a profitable trader? one who has taken a $100,000 account and in less than three months grown it to $1.6 million?
  (tags: trading)
• Barry Ritholtz's Thoughts on Bernanke's Testimony
  This testimony makes clear (to me at least) drew precisely the wrong conclusion from the FOMC statement last week. Bernanke is now correcting that error via this speech.
  (tags: stocks economics)
• Trading And Information Processing: Why Traders "Sabotage" Themselves
  (tags: trading success Psychology toread)
• Ways to View Wikipedia on a PDA
  (tags: PDA wikipedia Reference palm Tools treo)

(Note: This will be the last regular post (watchlists & recaps) until this weekend. Look for the next recap this weekend once I'm back from New York.)

Trading was choppy & sloppy today as the market tried to digest Bernanke's comments. The bulls gave it a good try mid-day but the indices still closed near their lows for the day. Here's the intraday QQQQ chart (15 minute candles):

It's also interesting to note that Bernanke's clarified the Fed's stance on inflation and now the market has basically given back all of the post-Fed gains from last week. Here's the intraday S&P 500 chart showing the liftoff caused by the Fed decision / statement last Wednesday:

I thought I'd show the Multiple Moving Averages (MMAs) again. Here's the Nasdaq chart showing that last week's rally didn't hold long enough to flip the long-term group back to a bullish posture. I'm now on the lookout for that long-term group to spread out, showing a strengthening downtrend.

The S&P 500 closed beneath its 50 DMA and gave a stochastic sell signal. The obvious potential support level for it and the other indices is the mid point of the W-bottom made earlier this month -- around 1410 for the S&P and 2405 for the Nasdaq.

The Russell's back below 800.

Lot's of 'downgrades' today with all the moving average breaks.

The 'homies' (& their ilk) are in the news again with this FBI probe of Beazer Homes for mortgage lending fraud. So my group of homebuilders & lenders (BZH, KBH, LEN, DHI, CTX, PHM, TOL, CFC, WM, LEND, FMT, WFC...) will remain front & center on my monitors.

The S&P is set to gap under its 50-day moving average so things could get interesting today as that important technical level gets taken out. Perhaps Big Ben Bernanke can save the day. He speaks at 10:30. I'm not sure that he'll say anything market-moving but there's always that potential...

On Today's Calendar:

• 10:30 -- Crude Inventories

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• Patience Is A Trader's Virtue
  Although the best investors and traders understand the importance of patience, it is one of the most difficult skills to learn as an investor and trader.
  (tags: trading investing)
• Why I Am a Bear by Tim Knight
  The bear explains himself
  (tags: stocks)
• Hillenbrand Industries (HB) | Wallstrip
  Whether you’re checking in or checking out, Hillenbrand Industries (HB) has just the product for you….too bad they don’t make wooden stakes.
  (tags: stocks)
• Toby Crabel And The Epistemology Of Trading Expertise
  (tags: trading toread)

If you're in New York Friday night please stop by and help us celebrate the 100^th episode of WallStrip:

Come join us if you are in NEW YORK this Friday evening to celebrate the actors and crew that helped build Wallstrip through 100 plus shows.

It is at 54 Bond Street, 3rd Floor at 9 pm. Food, Drinks, Cramer 2 (maybe even the real Cramer) the Vampire, The Adobe Flasher, The Doctors, and yes… Lindsay.

Selling was broad-based today but there wasn't much volume behind it. The major indices each lost at least 0.5% on the day as they hover near their 50-day moving averages. The Dow and Nasdaq closed beneath their 'fiddies' and are close to giving stochastic sell signals. The S&P is only 3 points above its 50-day moving average and it sure seems likely that it will also break that line. But I can't get too excited about playing the short side here unless volume picks up. You know what they say about shorting a dull market...

Worden had an interesting S&P chart & comment tonight. He did another of his "kiss the channel goodbye" pieces today. In other words, the index broke down out of its channel and then rallied back to touch (kiss) the bottom of that channel before rolling over. The channel he used, which is shown below is a regression channel with parameters of 100, 17, 20:

Here's my S&P chart. My focus will be on the 50-day moving average tomorrow.

The Naz is looking like a short to me but I'd like it better as a short if it breaks Monday's low on higher volume.

Looks like a retest of 800 on the Russell is around the corner.

The Nasdaq's intermediate-term trend is now down since it broke its 50-day moving average.

Home, home on the range... we're set for a small gap down, which will put the indices right in the middle of their ranges. (Yawn) Maybe some of these housing related stocks will follow-through to the downside...

On Today's Calendar:

• 10:00 -- Consumer Confidence

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• The stock is dead, long live commodities, says Jim Rogers
  The current stock market environment is similar to that of the 1970s with big trading ranges, which some people were able to exploit successfully. "But most people are not very good at this. They need to have a secular bull market
  (tags: stocks commodities investing)
• 3-30-07 Wallstrip Chat: Michael Covel
  Lindsay sits down with Michael Covel, author of “Turtle Trader” and “Trend Following”, and gets him to open the doors to the Turtle Trading Library.
  (tags: stocks video)
• For Easier Taxes, Plan Ahead
  For active traders, taxes can be difficult — and costly — if you’re not proactive. These tax-season tips can help fatten your refund check or lower your tax bill.
  (tags: taxes trading stocks investing)
• TraderFeed: Three Principles For Blogs And Businesses
  (tags: blogging for_TM)
• Why Traders Plan Trades But Don't Trade Their Plans
  (tags: trading)

Michelle B submits:

Having read a few comments at trading blogs---OK, I have read zillions---I have encountered more often than not, a frenzied, harried, stressful approach to time when one is trading. Some feel the demonic pressure crushing them as soon as the market opens; others feel enervated by its demands needling and pinpricking them throughout the trading day. Regard time, instead, as a wonderful and gracious friend, accommodating your need to focus and execute successful trades.

Specifically, I rely upon my friend, time, in three concrete ways:

I. Using Time frames

All time frames are useful and valuable--monthly, weekly, daily, hourly, thirty minute, fifteen minute, five minute, and last, but not least, one minute. My motto is: Fondle your candles. I look at my candlesticks lovingly and with great attention to details, sucking out the last bit of information they can give me. Certainly a graphic way of stating my point, but candlesticks of different time frames are worth the time upon which to ponder. Ah, time. We got it, so we need to use it well. And there they are, our helpful friends, all lined up, willing to protect our capital like dutiful soldiers, but we are too busy squandering time by not focusing and being distracted by all the action.

Often, time is used to oversee too many candidates or it is used to mind too many trades, so it is easier to just focus on one or two time frames, therefore resulting in the missing of much information. Some traders regard the one minute as dangerous, stimulating them to act foolish and blinding them to the smoother pattern of longer time frames. Others regard the longer time frames as concealing more pertinent details that only the shorter time frames can reveal. The disadvantages of one time frame is countered by the advantages of another, so using them all is truly taking advantage of those little bundles of time, with their high-quality content. In addition, looking at many time frames, will allow the beginner trader to learn the workings of the market. Checking out many time frames does not mean that you violate either your trading methodology or risk parameters.

II. Identifying, preparing for, and focusing on special time periods in the trading day

Already having discussed POT, I will address several other special times in the trading day.

1) 9:30 AM ET to 10:45 is a time of high volume, where usually a trend happens after a breakout in the opening range or consolidation.
2) 10:45 AM ET to Noon ET is when, following whatever trend that happened after the open, price will often consolidate during this time period on low to moderate volume.
3) Noon to 1:30 PM ET is when slow and steady trend continuing or reversals can happen on low to moderate volume.
4) 1:30 PM ET is when abrupt and pronounced continuation of trending or reversal on high volume can happen.
5) 2 PM ET (better known as POT) is also when abrupt and pronounced continuation of trending or reversal on high volume can happen.
6) 3 PM ET is yet again a possible time for either a high-volumed, abrupt, and pronounced continuation of trending or reversal happening.
7) 3:30 PM ET, yup, you guessed it, this particularly tricky time can trigger a very abrupt trend continuation or reversal on high volume.

III. Awareness of economic/seasonal events

It is important to know not only when earning releases are due, but also economic reports, options expirations, end of month and quarter, holidays, and seasonal times like the usual low-volume summertime.

Time is like beauty, in the sense how it can be interpreted differently in the eyes of the beholder. The above information was gleaned from actually trading the market over years. Each trader need to take the basic information and apply it to her/himself in order to make it their own so it will work equally well for them.

Michelle B submits:

Trading the second leg of two measured up legs separated by a bull flag is one my favorite trades, especially because the trade usually lasts only 30 to 60 minutes. In most cases, I will at least partially anticipate the breakout allowing me to keep a very tight stop loss.

What is noteworthy about this particular daytrade in PPL which I took Tuesday, March 27 is the smallness of the move. PPL is an electrical utility which got an upgrade premarket, and which I identified via the top gainers scan for the NYSE. Electrical utilities trading on the NYSE usually do not attract daytraders because intraday trading ranges are small. However, PPL made a new 52 week high and had high volume with a decent bid/ask spread.

Entering at 41.14 where the gently rising, one-minute 50 sma (blue line on the displayed chart) served as support and exiting at 41.46 resulted in only a .32 move. However, the stop loss was just .05, a couple pennies under the 50 sma support, so this small move packed a high R punch of 6. Because of such a small risk, I was able to trade a sizable lot resulting in a nice profit. So small can be big.

• Whole Foods (WFMI): The next Starbucks - MSN Money
  The 'emerging lifestyle' chain, known for high-quality goods and pleasant shopping environments, is on the verge of explosive growth that should double its stock price in three years.
  (tags: stocks toread)
• A Look At Kagi Charts
  This relatively unknown tool could help you find an asset's trend faster.
  (tags: stocks technicalanalysis)
• The Nintendo Wii gives NEW life to an old TREND - Gaming
  (tags: stocks)
• Stock Trends, Charts, and Commentary
  Are you letting your personal market opinion change how you read a chart? Here is the test ...
  (tags: stocks technicalanalysis)
• 3-28-07 MasterCard Incorporated (MA) | Wallstrip
  Going public and trending upwards: priceless. Making it easier to spend money with your MasterCard: also priceless.
  (tags: stocks)
• Sign of a Market Top?
  George Gilder has launched a hedge fund called the BetaZero Gilder Technology Fund.
  (tags: stocks hedgefunds)
• Looking Over The Shoulders Of A Successful Trader
  Would you be interested in peering over the shoulder of a profitable trader? one who has taken a $100,000 account and in less than three months grown it to $1.6 million?
  (tags: trading)
• Barry Ritholtz's Thoughts on Bernanke's Testimony
  This testimony makes clear (to me at least) drew precisely the wrong conclusion from the FOMC statement last week. Bernanke is now correcting that error via this speech.
  (tags: stocks economics)
• Trading And Information Processing: Why Traders "Sabotage" Themselves
  (tags: trading success Psychology toread)
• Ways to View Wikipedia on a PDA
  (tags: PDA wikipedia Reference palm Tools treo)

(Note: This will be the last regular post (watchlists & recaps) until this weekend. Look for the next recap this weekend once I'm back from New York.)

Trading was choppy & sloppy today as the market tried to digest Bernanke's comments. The bulls gave it a good try mid-day but the indices still closed near their lows for the day. Here's the intraday QQQQ chart (15 minute candles):

It's also interesting to note that Bernanke's clarified the Fed's stance on inflation and now the market has basically given back all of the post-Fed gains from last week. Here's the intraday S&P 500 chart showing the liftoff caused by the Fed decision / statement last Wednesday:

I thought I'd show the Multiple Moving Averages (MMAs) again. Here's the Nasdaq chart showing that last week's rally didn't hold long enough to flip the long-term group back to a bullish posture. I'm now on the lookout for that long-term group to spread out, showing a strengthening downtrend.

The S&P 500 closed beneath its 50 DMA and gave a stochastic sell signal. The obvious potential support level for it and the other indices is the mid point of the W-bottom made earlier this month -- around 1410 for the S&P and 2405 for the Nasdaq.

The Russell's back below 800.

Lot's of 'downgrades' today with all the moving average breaks.

The 'homies' (& their ilk) are in the news again with this FBI probe of Beazer Homes for mortgage lending fraud. So my group of homebuilders & lenders (BZH, KBH, LEN, DHI, CTX, PHM, TOL, CFC, WM, LEND, FMT, WFC...) will remain front & center on my monitors.

The S&P is set to gap under its 50-day moving average so things could get interesting today as that important technical level gets taken out. Perhaps Big Ben Bernanke can save the day. He speaks at 10:30. I'm not sure that he'll say anything market-moving but there's always that potential...

On Today's Calendar:

• 10:30 -- Crude Inventories

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• Patience Is A Trader's Virtue
  Although the best investors and traders understand the importance of patience, it is one of the most difficult skills to learn as an investor and trader.
  (tags: trading investing)
• Why I Am a Bear by Tim Knight
  The bear explains himself
  (tags: stocks)
• Hillenbrand Industries (HB) | Wallstrip
  Whether you’re checking in or checking out, Hillenbrand Industries (HB) has just the product for you….too bad they don’t make wooden stakes.
  (tags: stocks)
• Toby Crabel And The Epistemology Of Trading Expertise
  (tags: trading toread)

If you're in New York Friday night please stop by and help us celebrate the 100^th episode of WallStrip:

Come join us if you are in NEW YORK this Friday evening to celebrate the actors and crew that helped build Wallstrip through 100 plus shows.

It is at 54 Bond Street, 3rd Floor at 9 pm. Food, Drinks, Cramer 2 (maybe even the real Cramer) the Vampire, The Adobe Flasher, The Doctors, and yes… Lindsay.

Selling was broad-based today but there wasn't much volume behind it. The major indices each lost at least 0.5% on the day as they hover near their 50-day moving averages. The Dow and Nasdaq closed beneath their 'fiddies' and are close to giving stochastic sell signals. The S&P is only 3 points above its 50-day moving average and it sure seems likely that it will also break that line. But I can't get too excited about playing the short side here unless volume picks up. You know what they say about shorting a dull market...

Worden had an interesting S&P chart & comment tonight. He did another of his "kiss the channel goodbye" pieces today. In other words, the index broke down out of its channel and then rallied back to touch (kiss) the bottom of that channel before rolling over. The channel he used, which is shown below is a regression channel with parameters of 100, 17, 20:

Here's my S&P chart. My focus will be on the 50-day moving average tomorrow.

The Naz is looking like a short to me but I'd like it better as a short if it breaks Monday's low on higher volume.

Looks like a retest of 800 on the Russell is around the corner.

The Nasdaq's intermediate-term trend is now down since it broke its 50-day moving average.

Home, home on the range... we're set for a small gap down, which will put the indices right in the middle of their ranges. (Yawn) Maybe some of these housing related stocks will follow-through to the downside...

On Today's Calendar:

• 10:00 -- Consumer Confidence

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• The stock is dead, long live commodities, says Jim Rogers
  The current stock market environment is similar to that of the 1970s with big trading ranges, which some people were able to exploit successfully. "But most people are not very good at this. They need to have a secular bull market
  (tags: stocks commodities investing)
• 3-30-07 Wallstrip Chat: Michael Covel
  Lindsay sits down with Michael Covel, author of “Turtle Trader” and “Trend Following”, and gets him to open the doors to the Turtle Trading Library.
  (tags: stocks video)
• For Easier Taxes, Plan Ahead
  For active traders, taxes can be difficult — and costly — if you’re not proactive. These tax-season tips can help fatten your refund check or lower your tax bill.
  (tags: taxes trading stocks investing)
• TraderFeed: Three Principles For Blogs And Businesses
  (tags: blogging for_TM)
• Why Traders Plan Trades But Don't Trade Their Plans
  (tags: trading)

Michelle B submits:

Having read a few comments at trading blogs---OK, I have read zillions---I have encountered more often than not, a frenzied, harried, stressful approach to time when one is trading. Some feel the demonic pressure crushing them as soon as the market opens; others feel enervated by its demands needling and pinpricking them throughout the trading day. Regard time, instead, as a wonderful and gracious friend, accommodating your need to focus and execute successful trades.

Specifically, I rely upon my friend, time, in three concrete ways:

I. Using Time frames

All time frames are useful and valuable--monthly, weekly, daily, hourly, thirty minute, fifteen minute, five minute, and last, but not least, one minute. My motto is: Fondle your candles. I look at my candlesticks lovingly and with great attention to details, sucking out the last bit of information they can give me. Certainly a graphic way of stating my point, but candlesticks of different time frames are worth the time upon which to ponder. Ah, time. We got it, so we need to use it well. And there they are, our helpful friends, all lined up, willing to protect our capital like dutiful soldiers, but we are too busy squandering time by not focusing and being distracted by all the action.

Often, time is used to oversee too many candidates or it is used to mind too many trades, so it is easier to just focus on one or two time frames, therefore resulting in the missing of much information. Some traders regard the one minute as dangerous, stimulating them to act foolish and blinding them to the smoother pattern of longer time frames. Others regard the longer time frames as concealing more pertinent details that only the shorter time frames can reveal. The disadvantages of one time frame is countered by the advantages of another, so using them all is truly taking advantage of those little bundles of time, with their high-quality content. In addition, looking at many time frames, will allow the beginner trader to learn the workings of the market. Checking out many time frames does not mean that you violate either your trading methodology or risk parameters.

II. Identifying, preparing for, and focusing on special time periods in the trading day

Already having discussed POT, I will address several other special times in the trading day.

1) 9:30 AM ET to 10:45 is a time of high volume, where usually a trend happens after a breakout in the opening range or consolidation.
2) 10:45 AM ET to Noon ET is when, following whatever trend that happened after the open, price will often consolidate during this time period on low to moderate volume.
3) Noon to 1:30 PM ET is when slow and steady trend continuing or reversals can happen on low to moderate volume.
4) 1:30 PM ET is when abrupt and pronounced continuation of trending or reversal on high volume can happen.
5) 2 PM ET (better known as POT) is also when abrupt and pronounced continuation of trending or reversal on high volume can happen.
6) 3 PM ET is yet again a possible time for either a high-volumed, abrupt, and pronounced continuation of trending or reversal happening.
7) 3:30 PM ET, yup, you guessed it, this particularly tricky time can trigger a very abrupt trend continuation or reversal on high volume.

III. Awareness of economic/seasonal events

It is important to know not only when earning releases are due, but also economic reports, options expirations, end of month and quarter, holidays, and seasonal times like the usual low-volume summertime.

Time is like beauty, in the sense how it can be interpreted differently in the eyes of the beholder. The above information was gleaned from actually trading the market over years. Each trader need to take the basic information and apply it to her/himself in order to make it their own so it will work equally well for them.

Michelle B submits:

Trading the second leg of two measured up legs separated by a bull flag is one my favorite trades, especially because the trade usually lasts only 30 to 60 minutes. In most cases, I will at least partially anticipate the breakout allowing me to keep a very tight stop loss.

What is noteworthy about this particular daytrade in PPL which I took Tuesday, March 27 is the smallness of the move. PPL is an electrical utility which got an upgrade premarket, and which I identified via the top gainers scan for the NYSE. Electrical utilities trading on the NYSE usually do not attract daytraders because intraday trading ranges are small. However, PPL made a new 52 week high and had high volume with a decent bid/ask spread.

Entering at 41.14 where the gently rising, one-minute 50 sma (blue line on the displayed chart) served as support and exiting at 41.46 resulted in only a .32 move. However, the stop loss was just .05, a couple pennies under the 50 sma support, so this small move packed a high R punch of 6. Because of such a small risk, I was able to trade a sizable lot resulting in a nice profit. So small can be big.

• Whole Foods (WFMI): The next Starbucks - MSN Money
  The 'emerging lifestyle' chain, known for high-quality goods and pleasant shopping environments, is on the verge of explosive growth that should double its stock price in three years.
  (tags: stocks toread)
• A Look At Kagi Charts
  This relatively unknown tool could help you find an asset's trend faster.
  (tags: stocks technicalanalysis)
• The Nintendo Wii gives NEW life to an old TREND - Gaming
  (tags: stocks)
• Stock Trends, Charts, and Commentary
  Are you letting your personal market opinion change how you read a chart? Here is the test ...
  (tags: stocks technicalanalysis)
• 3-28-07 MasterCard Incorporated (MA) | Wallstrip
  Going public and trending upwards: priceless. Making it easier to spend money with your MasterCard: also priceless.
  (tags: stocks)
• Sign of a Market Top?
  George Gilder has launched a hedge fund called the BetaZero Gilder Technology Fund.
  (tags: stocks hedgefunds)
• Looking Over The Shoulders Of A Successful Trader
  Would you be interested in peering over the shoulder of a profitable trader? one who has taken a $100,000 account and in less than three months grown it to $1.6 million?
  (tags: trading)
• Barry Ritholtz's Thoughts on Bernanke's Testimony
  This testimony makes clear (to me at least) drew precisely the wrong conclusion from the FOMC statement last week. Bernanke is now correcting that error via this speech.
  (tags: stocks economics)
• Trading And Information Processing: Why Traders "Sabotage" Themselves
  (tags: trading success Psychology toread)
• Ways to View Wikipedia on a PDA
  (tags: PDA wikipedia Reference palm Tools treo)

(Note: This will be the last regular post (watchlists & recaps) until this weekend. Look for the next recap this weekend once I'm back from New York.)

Trading was choppy & sloppy today as the market tried to digest Bernanke's comments. The bulls gave it a good try mid-day but the indices still closed near their lows for the day. Here's the intraday QQQQ chart (15 minute candles):

It's also interesting to note that Bernanke's clarified the Fed's stance on inflation and now the market has basically given back all of the post-Fed gains from last week. Here's the intraday S&P 500 chart showing the liftoff caused by the Fed decision / statement last Wednesday:

I thought I'd show the Multiple Moving Averages (MMAs) again. Here's the Nasdaq chart showing that last week's rally didn't hold long enough to flip the long-term group back to a bullish posture. I'm now on the lookout for that long-term group to spread out, showing a strengthening downtrend.

The S&P 500 closed beneath its 50 DMA and gave a stochastic sell signal. The obvious potential support level for it and the other indices is the mid point of the W-bottom made earlier this month -- around 1410 for the S&P and 2405 for the Nasdaq.

The Russell's back below 800.

Lot's of 'downgrades' today with all the moving average breaks.

The 'homies' (& their ilk) are in the news again with this FBI probe of Beazer Homes for mortgage lending fraud. So my group of homebuilders & lenders (BZH, KBH, LEN, DHI, CTX, PHM, TOL, CFC, WM, LEND, FMT, WFC...) will remain front & center on my monitors.

The S&P is set to gap under its 50-day moving average so things could get interesting today as that important technical level gets taken out. Perhaps Big Ben Bernanke can save the day. He speaks at 10:30. I'm not sure that he'll say anything market-moving but there's always that potential...

On Today's Calendar:

• 10:30 -- Crude Inventories

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• Patience Is A Trader's Virtue
  Although the best investors and traders understand the importance of patience, it is one of the most difficult skills to learn as an investor and trader.
  (tags: trading investing)
• Why I Am a Bear by Tim Knight
  The bear explains himself
  (tags: stocks)
• Hillenbrand Industries (HB) | Wallstrip
  Whether you’re checking in or checking out, Hillenbrand Industries (HB) has just the product for you….too bad they don’t make wooden stakes.
  (tags: stocks)
• Toby Crabel And The Epistemology Of Trading Expertise
  (tags: trading toread)

If you're in New York Friday night please stop by and help us celebrate the 100^th episode of WallStrip:

Come join us if you are in NEW YORK this Friday evening to celebrate the actors and crew that helped build Wallstrip through 100 plus shows.

It is at 54 Bond Street, 3rd Floor at 9 pm. Food, Drinks, Cramer 2 (maybe even the real Cramer) the Vampire, The Adobe Flasher, The Doctors, and yes… Lindsay.

Selling was broad-based today but there wasn't much volume behind it. The major indices each lost at least 0.5% on the day as they hover near their 50-day moving averages. The Dow and Nasdaq closed beneath their 'fiddies' and are close to giving stochastic sell signals. The S&P is only 3 points above its 50-day moving average and it sure seems likely that it will also break that line. But I can't get too excited about playing the short side here unless volume picks up. You know what they say about shorting a dull market...

Worden had an interesting S&P chart & comment tonight. He did another of his "kiss the channel goodbye" pieces today. In other words, the index broke down out of its channel and then rallied back to touch (kiss) the bottom of that channel before rolling over. The channel he used, which is shown below is a regression channel with parameters of 100, 17, 20:

Here's my S&P chart. My focus will be on the 50-day moving average tomorrow.

The Naz is looking like a short to me but I'd like it better as a short if it breaks Monday's low on higher volume.

Looks like a retest of 800 on the Russell is around the corner.

The Nasdaq's intermediate-term trend is now down since it broke its 50-day moving average.

Home, home on the range... we're set for a small gap down, which will put the indices right in the middle of their ranges. (Yawn) Maybe some of these housing related stocks will follow-through to the downside...

On Today's Calendar:

• 10:00 -- Consumer Confidence

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• The stock is dead, long live commodities, says Jim Rogers
  The current stock market environment is similar to that of the 1970s with big trading ranges, which some people were able to exploit successfully. "But most people are not very good at this. They need to have a secular bull market
  (tags: stocks commodities investing)
• 3-30-07 Wallstrip Chat: Michael Covel
  Lindsay sits down with Michael Covel, author of “Turtle Trader” and “Trend Following”, and gets him to open the doors to the Turtle Trading Library.
  (tags: stocks video)
• For Easier Taxes, Plan Ahead
  For active traders, taxes can be difficult — and costly — if you’re not proactive. These tax-season tips can help fatten your refund check or lower your tax bill.
  (tags: taxes trading stocks investing)
• TraderFeed: Three Principles For Blogs And Businesses
  (tags: blogging for_TM)
• Why Traders Plan Trades But Don't Trade Their Plans
  (tags: trading)

Michelle B submits:

Having read a few comments at trading blogs---OK, I have read zillions---I have encountered more often than not, a frenzied, harried, stressful approach to time when one is trading. Some feel the demonic pressure crushing them as soon as the market opens; others feel enervated by its demands needling and pinpricking them throughout the trading day. Regard time, instead, as a wonderful and gracious friend, accommodating your need to focus and execute successful trades.

Specifically, I rely upon my friend, time, in three concrete ways:

I. Using Time frames

All time frames are useful and valuable--monthly, weekly, daily, hourly, thirty minute, fifteen minute, five minute, and last, but not least, one minute. My motto is: Fondle your candles. I look at my candlesticks lovingly and with great attention to details, sucking out the last bit of information they can give me. Certainly a graphic way of stating my point, but candlesticks of different time frames are worth the time upon which to ponder. Ah, time. We got it, so we need to use it well. And there they are, our helpful friends, all lined up, willing to protect our capital like dutiful soldiers, but we are too busy squandering time by not focusing and being distracted by all the action.

Often, time is used to oversee too many candidates or it is used to mind too many trades, so it is easier to just focus on one or two time frames, therefore resulting in the missing of much information. Some traders regard the one minute as dangerous, stimulating them to act foolish and blinding them to the smoother pattern of longer time frames. Others regard the longer time frames as concealing more pertinent details that only the shorter time frames can reveal. The disadvantages of one time frame is countered by the advantages of another, so using them all is truly taking advantage of those little bundles of time, with their high-quality content. In addition, looking at many time frames, will allow the beginner trader to learn the workings of the market. Checking out many time frames does not mean that you violate either your trading methodology or risk parameters.

II. Identifying, preparing for, and focusing on special time periods in the trading day

Already having discussed POT, I will address several other special times in the trading day.

1) 9:30 AM ET to 10:45 is a time of high volume, where usually a trend happens after a breakout in the opening range or consolidation.
2) 10:45 AM ET to Noon ET is when, following whatever trend that happened after the open, price will often consolidate during this time period on low to moderate volume.
3) Noon to 1:30 PM ET is when slow and steady trend continuing or reversals can happen on low to moderate volume.
4) 1:30 PM ET is when abrupt and pronounced continuation of trending or reversal on high volume can happen.
5) 2 PM ET (better known as POT) is also when abrupt and pronounced continuation of trending or reversal on high volume can happen.
6) 3 PM ET is yet again a possible time for either a high-volumed, abrupt, and pronounced continuation of trending or reversal happening.
7) 3:30 PM ET, yup, you guessed it, this particularly tricky time can trigger a very abrupt trend continuation or reversal on high volume.

III. Awareness of economic/seasonal events

It is important to know not only when earning releases are due, but also economic reports, options expirations, end of month and quarter, holidays, and seasonal times like the usual low-volume summertime.

Time is like beauty, in the sense how it can be interpreted differently in the eyes of the beholder. The above information was gleaned from actually trading the market over years. Each trader need to take the basic information and apply it to her/himself in order to make it their own so it will work equally well for them.

Michelle B submits:

Trading the second leg of two measured up legs separated by a bull flag is one my favorite trades, especially because the trade usually lasts only 30 to 60 minutes. In most cases, I will at least partially anticipate the breakout allowing me to keep a very tight stop loss.

What is noteworthy about this particular daytrade in PPL which I took Tuesday, March 27 is the smallness of the move. PPL is an electrical utility which got an upgrade premarket, and which I identified via the top gainers scan for the NYSE. Electrical utilities trading on the NYSE usually do not attract daytraders because intraday trading ranges are small. However, PPL made a new 52 week high and had high volume with a decent bid/ask spread.

Entering at 41.14 where the gently rising, one-minute 50 sma (blue line on the displayed chart) served as support and exiting at 41.46 resulted in only a .32 move. However, the stop loss was just .05, a couple pennies under the 50 sma support, so this small move packed a high R punch of 6. Because of such a small risk, I was able to trade a sizable lot resulting in a nice profit. So small can be big.

• Whole Foods (WFMI): The next Starbucks - MSN Money
  The 'emerging lifestyle' chain, known for high-quality goods and pleasant shopping environments, is on the verge of explosive growth that should double its stock price in three years.
  (tags: stocks toread)
• A Look At Kagi Charts
  This relatively unknown tool could help you find an asset's trend faster.
  (tags: stocks technicalanalysis)
• The Nintendo Wii gives NEW life to an old TREND - Gaming
  (tags: stocks)
• Stock Trends, Charts, and Commentary
  Are you letting your personal market opinion change how you read a chart? Here is the test ...
  (tags: stocks technicalanalysis)
• 3-28-07 MasterCard Incorporated (MA) | Wallstrip
  Going public and trending upwards: priceless. Making it easier to spend money with your MasterCard: also priceless.
  (tags: stocks)
• Sign of a Market Top?
  George Gilder has launched a hedge fund called the BetaZero Gilder Technology Fund.
  (tags: stocks hedgefunds)
• Looking Over The Shoulders Of A Successful Trader
  Would you be interested in peering over the shoulder of a profitable trader? one who has taken a $100,000 account and in less than three months grown it to $1.6 million?
  (tags: trading)
• Barry Ritholtz's Thoughts on Bernanke's Testimony
  This testimony makes clear (to me at least) drew precisely the wrong conclusion from the FOMC statement last week. Bernanke is now correcting that error via this speech.
  (tags: stocks economics)
• Trading And Information Processing: Why Traders "Sabotage" Themselves
  (tags: trading success Psychology toread)
• Ways to View Wikipedia on a PDA
  (tags: PDA wikipedia Reference palm Tools treo)

(Note: This will be the last regular post (watchlists & recaps) until this weekend. Look for the next recap this weekend once I'm back from New York.)

Trading was choppy & sloppy today as the market tried to digest Bernanke's comments. The bulls gave it a good try mid-day but the indices still closed near their lows for the day. Here's the intraday QQQQ chart (15 minute candles):

It's also interesting to note that Bernanke's clarified the Fed's stance on inflation and now the market has basically given back all of the post-Fed gains from last week. Here's the intraday S&P 500 chart showing the liftoff caused by the Fed decision / statement last Wednesday:

I thought I'd show the Multiple Moving Averages (MMAs) again. Here's the Nasdaq chart showing that last week's rally didn't hold long enough to flip the long-term group back to a bullish posture. I'm now on the lookout for that long-term group to spread out, showing a strengthening downtrend.

The S&P 500 closed beneath its 50 DMA and gave a stochastic sell signal. The obvious potential support level for it and the other indices is the mid point of the W-bottom made earlier this month -- around 1410 for the S&P and 2405 for the Nasdaq.

The Russell's back below 800.

Lot's of 'downgrades' today with all the moving average breaks.

The 'homies' (& their ilk) are in the news again with this FBI probe of Beazer Homes for mortgage lending fraud. So my group of homebuilders & lenders (BZH, KBH, LEN, DHI, CTX, PHM, TOL, CFC, WM, LEND, FMT, WFC...) will remain front & center on my monitors.

The S&P is set to gap under its 50-day moving average so things could get interesting today as that important technical level gets taken out. Perhaps Big Ben Bernanke can save the day. He speaks at 10:30. I'm not sure that he'll say anything market-moving but there's always that potential...

On Today's Calendar:

• 10:30 -- Crude Inventories

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• Patience Is A Trader's Virtue
  Although the best investors and traders understand the importance of patience, it is one of the most difficult skills to learn as an investor and trader.
  (tags: trading investing)
• Why I Am a Bear by Tim Knight
  The bear explains himself
  (tags: stocks)
• Hillenbrand Industries (HB) | Wallstrip
  Whether you’re checking in or checking out, Hillenbrand Industries (HB) has just the product for you….too bad they don’t make wooden stakes.
  (tags: stocks)
• Toby Crabel And The Epistemology Of Trading Expertise
  (tags: trading toread)

If you're in New York Friday night please stop by and help us celebrate the 100^th episode of WallStrip:

Come join us if you are in NEW YORK this Friday evening to celebrate the actors and crew that helped build Wallstrip through 100 plus shows.

It is at 54 Bond Street, 3rd Floor at 9 pm. Food, Drinks, Cramer 2 (maybe even the real Cramer) the Vampire, The Adobe Flasher, The Doctors, and yes… Lindsay.

Selling was broad-based today but there wasn't much volume behind it. The major indices each lost at least 0.5% on the day as they hover near their 50-day moving averages. The Dow and Nasdaq closed beneath their 'fiddies' and are close to giving stochastic sell signals. The S&P is only 3 points above its 50-day moving average and it sure seems likely that it will also break that line. But I can't get too excited about playing the short side here unless volume picks up. You know what they say about shorting a dull market...

Worden had an interesting S&P chart & comment tonight. He did another of his "kiss the channel goodbye" pieces today. In other words, the index broke down out of its channel and then rallied back to touch (kiss) the bottom of that channel before rolling over. The channel he used, which is shown below is a regression channel with parameters of 100, 17, 20:

Here's my S&P chart. My focus will be on the 50-day moving average tomorrow.

The Naz is looking like a short to me but I'd like it better as a short if it breaks Monday's low on higher volume.

Looks like a retest of 800 on the Russell is around the corner.

The Nasdaq's intermediate-term trend is now down since it broke its 50-day moving average.

Home, home on the range... we're set for a small gap down, which will put the indices right in the middle of their ranges. (Yawn) Maybe some of these housing related stocks will follow-through to the downside...

On Today's Calendar:

• 10:00 -- Consumer Confidence

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• The stock is dead, long live commodities, says Jim Rogers
  The current stock market environment is similar to that of the 1970s with big trading ranges, which some people were able to exploit successfully. "But most people are not very good at this. They need to have a secular bull market
  (tags: stocks commodities investing)
• 3-30-07 Wallstrip Chat: Michael Covel
  Lindsay sits down with Michael Covel, author of “Turtle Trader” and “Trend Following”, and gets him to open the doors to the Turtle Trading Library.
  (tags: stocks video)
• For Easier Taxes, Plan Ahead
  For active traders, taxes can be difficult — and costly — if you’re not proactive. These tax-season tips can help fatten your refund check or lower your tax bill.
  (tags: taxes trading stocks investing)
• TraderFeed: Three Principles For Blogs And Businesses
  (tags: blogging for_TM)
• Why Traders Plan Trades But Don't Trade Their Plans
  (tags: trading)

Michelle B submits:

Having read a few comments at trading blogs---OK, I have read zillions---I have encountered more often than not, a frenzied, harried, stressful approach to time when one is trading. Some feel the demonic pressure crushing them as soon as the market opens; others feel enervated by its demands needling and pinpricking them throughout the trading day. Regard time, instead, as a wonderful and gracious friend, accommodating your need to focus and execute successful trades.

Specifically, I rely upon my friend, time, in three concrete ways:

I. Using Time frames

All time frames are useful and valuable--monthly, weekly, daily, hourly, thirty minute, fifteen minute, five minute, and last, but not least, one minute. My motto is: Fondle your candles. I look at my candlesticks lovingly and with great attention to details, sucking out the last bit of information they can give me. Certainly a graphic way of stating my point, but candlesticks of different time frames are worth the time upon which to ponder. Ah, time. We got it, so we need to use it well. And there they are, our helpful friends, all lined up, willing to protect our capital like dutiful soldiers, but we are too busy squandering time by not focusing and being distracted by all the action.

Often, time is used to oversee too many candidates or it is used to mind too many trades, so it is easier to just focus on one or two time frames, therefore resulting in the missing of much information. Some traders regard the one minute as dangerous, stimulating them to act foolish and blinding them to the smoother pattern of longer time frames. Others regard the longer time frames as concealing more pertinent details that only the shorter time frames can reveal. The disadvantages of one time frame is countered by the advantages of another, so using them all is truly taking advantage of those little bundles of time, with their high-quality content. In addition, looking at many time frames, will allow the beginner trader to learn the workings of the market. Checking out many time frames does not mean that you violate either your trading methodology or risk parameters.

II. Identifying, preparing for, and focusing on special time periods in the trading day

Already having discussed POT, I will address several other special times in the trading day.

1) 9:30 AM ET to 10:45 is a time of high volume, where usually a trend happens after a breakout in the opening range or consolidation.
2) 10:45 AM ET to Noon ET is when, following whatever trend that happened after the open, price will often consolidate during this time period on low to moderate volume.
3) Noon to 1:30 PM ET is when slow and steady trend continuing or reversals can happen on low to moderate volume.
4) 1:30 PM ET is when abrupt and pronounced continuation of trending or reversal on high volume can happen.
5) 2 PM ET (better known as POT) is also when abrupt and pronounced continuation of trending or reversal on high volume can happen.
6) 3 PM ET is yet again a possible time for either a high-volumed, abrupt, and pronounced continuation of trending or reversal happening.
7) 3:30 PM ET, yup, you guessed it, this particularly tricky time can trigger a very abrupt trend continuation or reversal on high volume.

III. Awareness of economic/seasonal events

It is important to know not only when earning releases are due, but also economic reports, options expirations, end of month and quarter, holidays, and seasonal times like the usual low-volume summertime.

Time is like beauty, in the sense how it can be interpreted differently in the eyes of the beholder. The above information was gleaned from actually trading the market over years. Each trader need to take the basic information and apply it to her/himself in order to make it their own so it will work equally well for them.

Michelle B submits:

Trading the second leg of two measured up legs separated by a bull flag is one my favorite trades, especially because the trade usually lasts only 30 to 60 minutes. In most cases, I will at least partially anticipate the breakout allowing me to keep a very tight stop loss.

What is noteworthy about this particular daytrade in PPL which I took Tuesday, March 27 is the smallness of the move. PPL is an electrical utility which got an upgrade premarket, and which I identified via the top gainers scan for the NYSE. Electrical utilities trading on the NYSE usually do not attract daytraders because intraday trading ranges are small. However, PPL made a new 52 week high and had high volume with a decent bid/ask spread.

Entering at 41.14 where the gently rising, one-minute 50 sma (blue line on the displayed chart) served as support and exiting at 41.46 resulted in only a .32 move. However, the stop loss was just .05, a couple pennies under the 50 sma support, so this small move packed a high R punch of 6. Because of such a small risk, I was able to trade a sizable lot resulting in a nice profit. So small can be big.

• Whole Foods (WFMI): The next Starbucks - MSN Money
  The 'emerging lifestyle' chain, known for high-quality goods and pleasant shopping environments, is on the verge of explosive growth that should double its stock price in three years.
  (tags: stocks toread)
• A Look At Kagi Charts
  This relatively unknown tool could help you find an asset's trend faster.
  (tags: stocks technicalanalysis)
• The Nintendo Wii gives NEW life to an old TREND - Gaming
  (tags: stocks)
• Stock Trends, Charts, and Commentary
  Are you letting your personal market opinion change how you read a chart? Here is the test ...
  (tags: stocks technicalanalysis)
• 3-28-07 MasterCard Incorporated (MA) | Wallstrip
  Going public and trending upwards: priceless. Making it easier to spend money with your MasterCard: also priceless.
  (tags: stocks)
• Sign of a Market Top?
  George Gilder has launched a hedge fund called the BetaZero Gilder Technology Fund.
  (tags: stocks hedgefunds)
• Looking Over The Shoulders Of A Successful Trader
  Would you be interested in peering over the shoulder of a profitable trader? one who has taken a $100,000 account and in less than three months grown it to $1.6 million?
  (tags: trading)
• Barry Ritholtz's Thoughts on Bernanke's Testimony
  This testimony makes clear (to me at least) drew precisely the wrong conclusion from the FOMC statement last week. Bernanke is now correcting that error via this speech.
  (tags: stocks economics)
• Trading And Information Processing: Why Traders "Sabotage" Themselves
  (tags: trading success Psychology toread)
• Ways to View Wikipedia on a PDA
  (tags: PDA wikipedia Reference palm Tools treo)

(Note: This will be the last regular post (watchlists & recaps) until this weekend. Look for the next recap this weekend once I'm back from New York.)

Trading was choppy & sloppy today as the market tried to digest Bernanke's comments. The bulls gave it a good try mid-day but the indices still closed near their lows for the day. Here's the intraday QQQQ chart (15 minute candles):

It's also interesting to note that Bernanke's clarified the Fed's stance on inflation and now the market has basically given back all of the post-Fed gains from last week. Here's the intraday S&P 500 chart showing the liftoff caused by the Fed decision / statement last Wednesday:

I thought I'd show the Multiple Moving Averages (MMAs) again. Here's the Nasdaq chart showing that last week's rally didn't hold long enough to flip the long-term group back to a bullish posture. I'm now on the lookout for that long-term group to spread out, showing a strengthening downtrend.

The S&P 500 closed beneath its 50 DMA and gave a stochastic sell signal. The obvious potential support level for it and the other indices is the mid point of the W-bottom made earlier this month -- around 1410 for the S&P and 2405 for the Nasdaq.

The Russell's back below 800.

Lot's of 'downgrades' today with all the moving average breaks.

The 'homies' (& their ilk) are in the news again with this FBI probe of Beazer Homes for mortgage lending fraud. So my group of homebuilders & lenders (BZH, KBH, LEN, DHI, CTX, PHM, TOL, CFC, WM, LEND, FMT, WFC...) will remain front & center on my monitors.

The S&P is set to gap under its 50-day moving average so things could get interesting today as that important technical level gets taken out. Perhaps Big Ben Bernanke can save the day. He speaks at 10:30. I'm not sure that he'll say anything market-moving but there's always that potential...

On Today's Calendar:

• 10:30 -- Crude Inventories

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• Patience Is A Trader's Virtue
  Although the best investors and traders understand the importance of patience, it is one of the most difficult skills to learn as an investor and trader.
  (tags: trading investing)
• Why I Am a Bear by Tim Knight
  The bear explains himself
  (tags: stocks)
• Hillenbrand Industries (HB) | Wallstrip
  Whether you’re checking in or checking out, Hillenbrand Industries (HB) has just the product for you….too bad they don’t make wooden stakes.
  (tags: stocks)
• Toby Crabel And The Epistemology Of Trading Expertise
  (tags: trading toread)

If you're in New York Friday night please stop by and help us celebrate the 100^th episode of WallStrip:

Come join us if you are in NEW YORK this Friday evening to celebrate the actors and crew that helped build Wallstrip through 100 plus shows.

It is at 54 Bond Street, 3rd Floor at 9 pm. Food, Drinks, Cramer 2 (maybe even the real Cramer) the Vampire, The Adobe Flasher, The Doctors, and yes… Lindsay.

Selling was broad-based today but there wasn't much volume behind it. The major indices each lost at least 0.5% on the day as they hover near their 50-day moving averages. The Dow and Nasdaq closed beneath their 'fiddies' and are close to giving stochastic sell signals. The S&P is only 3 points above its 50-day moving average and it sure seems likely that it will also break that line. But I can't get too excited about playing the short side here unless volume picks up. You know what they say about shorting a dull market...

Worden had an interesting S&P chart & comment tonight. He did another of his "kiss the channel goodbye" pieces today. In other words, the index broke down out of its channel and then rallied back to touch (kiss) the bottom of that channel before rolling over. The channel he used, which is shown below is a regression channel with parameters of 100, 17, 20:

Here's my S&P chart. My focus will be on the 50-day moving average tomorrow.

The Naz is looking like a short to me but I'd like it better as a short if it breaks Monday's low on higher volume.

Looks like a retest of 800 on the Russell is around the corner.

The Nasdaq's intermediate-term trend is now down since it broke its 50-day moving average.

Home, home on the range... we're set for a small gap down, which will put the indices right in the middle of their ranges. (Yawn) Maybe some of these housing related stocks will follow-through to the downside...

On Today's Calendar:

• 10:00 -- Consumer Confidence

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• The stock is dead, long live commodities, says Jim Rogers
  The current stock market environment is similar to that of the 1970s with big trading ranges, which some people were able to exploit successfully. "But most people are not very good at this. They need to have a secular bull market
  (tags: stocks commodities investing)
• 3-30-07 Wallstrip Chat: Michael Covel
  Lindsay sits down with Michael Covel, author of “Turtle Trader” and “Trend Following”, and gets him to open the doors to the Turtle Trading Library.
  (tags: stocks video)
• For Easier Taxes, Plan Ahead
  For active traders, taxes can be difficult — and costly — if you’re not proactive. These tax-season tips can help fatten your refund check or lower your tax bill.
  (tags: taxes trading stocks investing)
• TraderFeed: Three Principles For Blogs And Businesses
  (tags: blogging for_TM)
• Why Traders Plan Trades But Don't Trade Their Plans
  (tags: trading)

Michelle B submits:

Having read a few comments at trading blogs---OK, I have read zillions---I have encountered more often than not, a frenzied, harried, stressful approach to time when one is trading. Some feel the demonic pressure crushing them as soon as the market opens; others feel enervated by its demands needling and pinpricking them throughout the trading day. Regard time, instead, as a wonderful and gracious friend, accommodating your need to focus and execute successful trades.

Specifically, I rely upon my friend, time, in three concrete ways:

I. Using Time frames

All time frames are useful and valuable--monthly, weekly, daily, hourly, thirty minute, fifteen minute, five minute, and last, but not least, one minute. My motto is: Fondle your candles. I look at my candlesticks lovingly and with great attention to details, sucking out the last bit of information they can give me. Certainly a graphic way of stating my point, but candlesticks of different time frames are worth the time upon which to ponder. Ah, time. We got it, so we need to use it well. And there they are, our helpful friends, all lined up, willing to protect our capital like dutiful soldiers, but we are too busy squandering time by not focusing and being distracted by all the action.

Often, time is used to oversee too many candidates or it is used to mind too many trades, so it is easier to just focus on one or two time frames, therefore resulting in the missing of much information. Some traders regard the one minute as dangerous, stimulating them to act foolish and blinding them to the smoother pattern of longer time frames. Others regard the longer time frames as concealing more pertinent details that only the shorter time frames can reveal. The disadvantages of one time frame is countered by the advantages of another, so using them all is truly taking advantage of those little bundles of time, with their high-quality content. In addition, looking at many time frames, will allow the beginner trader to learn the workings of the market. Checking out many time frames does not mean that you violate either your trading methodology or risk parameters.

II. Identifying, preparing for, and focusing on special time periods in the trading day

Already having discussed POT, I will address several other special times in the trading day.

1) 9:30 AM ET to 10:45 is a time of high volume, where usually a trend happens after a breakout in the opening range or consolidation.
2) 10:45 AM ET to Noon ET is when, following whatever trend that happened after the open, price will often consolidate during this time period on low to moderate volume.
3) Noon to 1:30 PM ET is when slow and steady trend continuing or reversals can happen on low to moderate volume.
4) 1:30 PM ET is when abrupt and pronounced continuation of trending or reversal on high volume can happen.
5) 2 PM ET (better known as POT) is also when abrupt and pronounced continuation of trending or reversal on high volume can happen.
6) 3 PM ET is yet again a possible time for either a high-volumed, abrupt, and pronounced continuation of trending or reversal happening.
7) 3:30 PM ET, yup, you guessed it, this particularly tricky time can trigger a very abrupt trend continuation or reversal on high volume.

III. Awareness of economic/seasonal events

It is important to know not only when earning releases are due, but also economic reports, options expirations, end of month and quarter, holidays, and seasonal times like the usual low-volume summertime.

Time is like beauty, in the sense how it can be interpreted differently in the eyes of the beholder. The above information was gleaned from actually trading the market over years. Each trader need to take the basic information and apply it to her/himself in order to make it their own so it will work equally well for them.

Michelle B submits:

Trading the second leg of two measured up legs separated by a bull flag is one my favorite trades, especially because the trade usually lasts only 30 to 60 minutes. In most cases, I will at least partially anticipate the breakout allowing me to keep a very tight stop loss.

What is noteworthy about this particular daytrade in PPL which I took Tuesday, March 27 is the smallness of the move. PPL is an electrical utility which got an upgrade premarket, and which I identified via the top gainers scan for the NYSE. Electrical utilities trading on the NYSE usually do not attract daytraders because intraday trading ranges are small. However, PPL made a new 52 week high and had high volume with a decent bid/ask spread.

Entering at 41.14 where the gently rising, one-minute 50 sma (blue line on the displayed chart) served as support and exiting at 41.46 resulted in only a .32 move. However, the stop loss was just .05, a couple pennies under the 50 sma support, so this small move packed a high R punch of 6. Because of such a small risk, I was able to trade a sizable lot resulting in a nice profit. So small can be big.

• Whole Foods (WFMI): The next Starbucks - MSN Money
  The 'emerging lifestyle' chain, known for high-quality goods and pleasant shopping environments, is on the verge of explosive growth that should double its stock price in three years.
  (tags: stocks toread)
• A Look At Kagi Charts
  This relatively unknown tool could help you find an asset's trend faster.
  (tags: stocks technicalanalysis)
• The Nintendo Wii gives NEW life to an old TREND - Gaming
  (tags: stocks)
• Stock Trends, Charts, and Commentary
  Are you letting your personal market opinion change how you read a chart? Here is the test ...
  (tags: stocks technicalanalysis)
• 3-28-07 MasterCard Incorporated (MA) | Wallstrip
  Going public and trending upwards: priceless. Making it easier to spend money with your MasterCard: also priceless.
  (tags: stocks)
• Sign of a Market Top?
  George Gilder has launched a hedge fund called the BetaZero Gilder Technology Fund.
  (tags: stocks hedgefunds)
• Looking Over The Shoulders Of A Successful Trader
  Would you be interested in peering over the shoulder of a profitable trader? one who has taken a $100,000 account and in less than three months grown it to $1.6 million?
  (tags: trading)
• Barry Ritholtz's Thoughts on Bernanke's Testimony
  This testimony makes clear (to me at least) drew precisely the wrong conclusion from the FOMC statement last week. Bernanke is now correcting that error via this speech.
  (tags: stocks economics)
• Trading And Information Processing: Why Traders "Sabotage" Themselves
  (tags: trading success Psychology toread)
• Ways to View Wikipedia on a PDA
  (tags: PDA wikipedia Reference palm Tools treo)

(Note: This will be the last regular post (watchlists & recaps) until this weekend. Look for the next recap this weekend once I'm back from New York.)

Trading was choppy & sloppy today as the market tried to digest Bernanke's comments. The bulls gave it a good try mid-day but the indices still closed near their lows for the day. Here's the intraday QQQQ chart (15 minute candles):

It's also interesting to note that Bernanke's clarified the Fed's stance on inflation and now the market has basically given back all of the post-Fed gains from last week. Here's the intraday S&P 500 chart showing the liftoff caused by the Fed decision / statement last Wednesday:

I thought I'd show the Multiple Moving Averages (MMAs) again. Here's the Nasdaq chart showing that last week's rally didn't hold long enough to flip the long-term group back to a bullish posture. I'm now on the lookout for that long-term group to spread out, showing a strengthening downtrend.

The S&P 500 closed beneath its 50 DMA and gave a stochastic sell signal. The obvious potential support level for it and the other indices is the mid point of the W-bottom made earlier this month -- around 1410 for the S&P and 2405 for the Nasdaq.

The Russell's back below 800.

Lot's of 'downgrades' today with all the moving average breaks.

The 'homies' (& their ilk) are in the news again with this FBI probe of Beazer Homes for mortgage lending fraud. So my group of homebuilders & lenders (BZH, KBH, LEN, DHI, CTX, PHM, TOL, CFC, WM, LEND, FMT, WFC...) will remain front & center on my monitors.

The S&P is set to gap under its 50-day moving average so things could get interesting today as that important technical level gets taken out. Perhaps Big Ben Bernanke can save the day. He speaks at 10:30. I'm not sure that he'll say anything market-moving but there's always that potential...

On Today's Calendar:

• 10:30 -- Crude Inventories

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• Patience Is A Trader's Virtue
  Although the best investors and traders understand the importance of patience, it is one of the most difficult skills to learn as an investor and trader.
  (tags: trading investing)
• Why I Am a Bear by Tim Knight
  The bear explains himself
  (tags: stocks)
• Hillenbrand Industries (HB) | Wallstrip
  Whether you’re checking in or checking out, Hillenbrand Industries (HB) has just the product for you….too bad they don’t make wooden stakes.
  (tags: stocks)
• Toby Crabel And The Epistemology Of Trading Expertise
  (tags: trading toread)

If you're in New York Friday night please stop by and help us celebrate the 100^th episode of WallStrip:

Come join us if you are in NEW YORK this Friday evening to celebrate the actors and crew that helped build Wallstrip through 100 plus shows.

It is at 54 Bond Street, 3rd Floor at 9 pm. Food, Drinks, Cramer 2 (maybe even the real Cramer) the Vampire, The Adobe Flasher, The Doctors, and yes… Lindsay.

Selling was broad-based today but there wasn't much volume behind it. The major indices each lost at least 0.5% on the day as they hover near their 50-day moving averages. The Dow and Nasdaq closed beneath their 'fiddies' and are close to giving stochastic sell signals. The S&P is only 3 points above its 50-day moving average and it sure seems likely that it will also break that line. But I can't get too excited about playing the short side here unless volume picks up. You know what they say about shorting a dull market...

Worden had an interesting S&P chart & comment tonight. He did another of his "kiss the channel goodbye" pieces today. In other words, the index broke down out of its channel and then rallied back to touch (kiss) the bottom of that channel before rolling over. The channel he used, which is shown below is a regression channel with parameters of 100, 17, 20:

Here's my S&P chart. My focus will be on the 50-day moving average tomorrow.

The Naz is looking like a short to me but I'd like it better as a short if it breaks Monday's low on higher volume.

Looks like a retest of 800 on the Russell is around the corner.

The Nasdaq's intermediate-term trend is now down since it broke its 50-day moving average.

Home, home on the range... we're set for a small gap down, which will put the indices right in the middle of their ranges. (Yawn) Maybe some of these housing related stocks will follow-through to the downside...

On Today's Calendar:

• 10:00 -- Consumer Confidence

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• The stock is dead, long live commodities, says Jim Rogers
  The current stock market environment is similar to that of the 1970s with big trading ranges, which some people were able to exploit successfully. "But most people are not very good at this. They need to have a secular bull market
  (tags: stocks commodities investing)
• 3-30-07 Wallstrip Chat: Michael Covel
  Lindsay sits down with Michael Covel, author of “Turtle Trader” and “Trend Following”, and gets him to open the doors to the Turtle Trading Library.
  (tags: stocks video)
• For Easier Taxes, Plan Ahead
  For active traders, taxes can be difficult — and costly — if you’re not proactive. These tax-season tips can help fatten your refund check or lower your tax bill.
  (tags: taxes trading stocks investing)
• TraderFeed: Three Principles For Blogs And Businesses
  (tags: blogging for_TM)
• Why Traders Plan Trades But Don't Trade Their Plans
  (tags: trading)

Michelle B submits:

Having read a few comments at trading blogs---OK, I have read zillions---I have encountered more often than not, a frenzied, harried, stressful approach to time when one is trading. Some feel the demonic pressure crushing them as soon as the market opens; others feel enervated by its demands needling and pinpricking them throughout the trading day. Regard time, instead, as a wonderful and gracious friend, accommodating your need to focus and execute successful trades.

Specifically, I rely upon my friend, time, in three concrete ways:

I. Using Time frames

All time frames are useful and valuable--monthly, weekly, daily, hourly, thirty minute, fifteen minute, five minute, and last, but not least, one minute. My motto is: Fondle your candles. I look at my candlesticks lovingly and with great attention to details, sucking out the last bit of information they can give me. Certainly a graphic way of stating my point, but candlesticks of different time frames are worth the time upon which to ponder. Ah, time. We got it, so we need to use it well. And there they are, our helpful friends, all lined up, willing to protect our capital like dutiful soldiers, but we are too busy squandering time by not focusing and being distracted by all the action.

Often, time is used to oversee too many candidates or it is used to mind too many trades, so it is easier to just focus on one or two time frames, therefore resulting in the missing of much information. Some traders regard the one minute as dangerous, stimulating them to act foolish and blinding them to the smoother pattern of longer time frames. Others regard the longer time frames as concealing more pertinent details that only the shorter time frames can reveal. The disadvantages of one time frame is countered by the advantages of another, so using them all is truly taking advantage of those little bundles of time, with their high-quality content. In addition, looking at many time frames, will allow the beginner trader to learn the workings of the market. Checking out many time frames does not mean that you violate either your trading methodology or risk parameters.

II. Identifying, preparing for, and focusing on special time periods in the trading day

Already having discussed POT, I will address several other special times in the trading day.

1) 9:30 AM ET to 10:45 is a time of high volume, where usually a trend happens after a breakout in the opening range or consolidation.
2) 10:45 AM ET to Noon ET is when, following whatever trend that happened after the open, price will often consolidate during this time period on low to moderate volume.
3) Noon to 1:30 PM ET is when slow and steady trend continuing or reversals can happen on low to moderate volume.
4) 1:30 PM ET is when abrupt and pronounced continuation of trending or reversal on high volume can happen.
5) 2 PM ET (better known as POT) is also when abrupt and pronounced continuation of trending or reversal on high volume can happen.
6) 3 PM ET is yet again a possible time for either a high-volumed, abrupt, and pronounced continuation of trending or reversal happening.
7) 3:30 PM ET, yup, you guessed it, this particularly tricky time can trigger a very abrupt trend continuation or reversal on high volume.

III. Awareness of economic/seasonal events

It is important to know not only when earning releases are due, but also economic reports, options expirations, end of month and quarter, holidays, and seasonal times like the usual low-volume summertime.

Time is like beauty, in the sense how it can be interpreted differently in the eyes of the beholder. The above information was gleaned from actually trading the market over years. Each trader need to take the basic information and apply it to her/himself in order to make it their own so it will work equally well for them.

Michelle B submits:

Trading the second leg of two measured up legs separated by a bull flag is one my favorite trades, especially because the trade usually lasts only 30 to 60 minutes. In most cases, I will at least partially anticipate the breakout allowing me to keep a very tight stop loss.

What is noteworthy about this particular daytrade in PPL which I took Tuesday, March 27 is the smallness of the move. PPL is an electrical utility which got an upgrade premarket, and which I identified via the top gainers scan for the NYSE. Electrical utilities trading on the NYSE usually do not attract daytraders because intraday trading ranges are small. However, PPL made a new 52 week high and had high volume with a decent bid/ask spread.

Entering at 41.14 where the gently rising, one-minute 50 sma (blue line on the displayed chart) served as support and exiting at 41.46 resulted in only a .32 move. However, the stop loss was just .05, a couple pennies under the 50 sma support, so this small move packed a high R punch of 6. Because of such a small risk, I was able to trade a sizable lot resulting in a nice profit. So small can be big.

• Whole Foods (WFMI): The next Starbucks - MSN Money
  The 'emerging lifestyle' chain, known for high-quality goods and pleasant shopping environments, is on the verge of explosive growth that should double its stock price in three years.
  (tags: stocks toread)
• A Look At Kagi Charts
  This relatively unknown tool could help you find an asset's trend faster.
  (tags: stocks technicalanalysis)
• The Nintendo Wii gives NEW life to an old TREND - Gaming
  (tags: stocks)
• Stock Trends, Charts, and Commentary
  Are you letting your personal market opinion change how you read a chart? Here is the test ...
  (tags: stocks technicalanalysis)
• 3-28-07 MasterCard Incorporated (MA) | Wallstrip
  Going public and trending upwards: priceless. Making it easier to spend money with your MasterCard: also priceless.
  (tags: stocks)
• Sign of a Market Top?
  George Gilder has launched a hedge fund called the BetaZero Gilder Technology Fund.
  (tags: stocks hedgefunds)
• Looking Over The Shoulders Of A Successful Trader
  Would you be interested in peering over the shoulder of a profitable trader? one who has taken a $100,000 account and in less than three months grown it to $1.6 million?
  (tags: trading)
• Barry Ritholtz's Thoughts on Bernanke's Testimony
  This testimony makes clear (to me at least) drew precisely the wrong conclusion from the FOMC statement last week. Bernanke is now correcting that error via this speech.
  (tags: stocks economics)
• Trading And Information Processing: Why Traders "Sabotage" Themselves
  (tags: trading success Psychology toread)
• Ways to View Wikipedia on a PDA
  (tags: PDA wikipedia Reference palm Tools treo)

(Note: This will be the last regular post (watchlists & recaps) until this weekend. Look for the next recap this weekend once I'm back from New York.)

Trading was choppy & sloppy today as the market tried to digest Bernanke's comments. The bulls gave it a good try mid-day but the indices still closed near their lows for the day. Here's the intraday QQQQ chart (15 minute candles):

It's also interesting to note that Bernanke's clarified the Fed's stance on inflation and now the market has basically given back all of the post-Fed gains from last week. Here's the intraday S&P 500 chart showing the liftoff caused by the Fed decision / statement last Wednesday:

I thought I'd show the Multiple Moving Averages (MMAs) again. Here's the Nasdaq chart showing that last week's rally didn't hold long enough to flip the long-term group back to a bullish posture. I'm now on the lookout for that long-term group to spread out, showing a strengthening downtrend.

The S&P 500 closed beneath its 50 DMA and gave a stochastic sell signal. The obvious potential support level for it and the other indices is the mid point of the W-bottom made earlier this month -- around 1410 for the S&P and 2405 for the Nasdaq.

The Russell's back below 800.

Lot's of 'downgrades' today with all the moving average breaks.

The 'homies' (& their ilk) are in the news again with this FBI probe of Beazer Homes for mortgage lending fraud. So my group of homebuilders & lenders (BZH, KBH, LEN, DHI, CTX, PHM, TOL, CFC, WM, LEND, FMT, WFC...) will remain front & center on my monitors.

The S&P is set to gap under its 50-day moving average so things could get interesting today as that important technical level gets taken out. Perhaps Big Ben Bernanke can save the day. He speaks at 10:30. I'm not sure that he'll say anything market-moving but there's always that potential...

On Today's Calendar:

• 10:30 -- Crude Inventories

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• Patience Is A Trader's Virtue
  Although the best investors and traders understand the importance of patience, it is one of the most difficult skills to learn as an investor and trader.
  (tags: trading investing)
• Why I Am a Bear by Tim Knight
  The bear explains himself
  (tags: stocks)
• Hillenbrand Industries (HB) | Wallstrip
  Whether you’re checking in or checking out, Hillenbrand Industries (HB) has just the product for you….too bad they don’t make wooden stakes.
  (tags: stocks)
• Toby Crabel And The Epistemology Of Trading Expertise
  (tags: trading toread)

If you're in New York Friday night please stop by and help us celebrate the 100^th episode of WallStrip:

Come join us if you are in NEW YORK this Friday evening to celebrate the actors and crew that helped build Wallstrip through 100 plus shows.

It is at 54 Bond Street, 3rd Floor at 9 pm. Food, Drinks, Cramer 2 (maybe even the real Cramer) the Vampire, The Adobe Flasher, The Doctors, and yes… Lindsay.

Selling was broad-based today but there wasn't much volume behind it. The major indices each lost at least 0.5% on the day as they hover near their 50-day moving averages. The Dow and Nasdaq closed beneath their 'fiddies' and are close to giving stochastic sell signals. The S&P is only 3 points above its 50-day moving average and it sure seems likely that it will also break that line. But I can't get too excited about playing the short side here unless volume picks up. You know what they say about shorting a dull market...

Worden had an interesting S&P chart & comment tonight. He did another of his "kiss the channel goodbye" pieces today. In other words, the index broke down out of its channel and then rallied back to touch (kiss) the bottom of that channel before rolling over. The channel he used, which is shown below is a regression channel with parameters of 100, 17, 20:

Here's my S&P chart. My focus will be on the 50-day moving average tomorrow.

The Naz is looking like a short to me but I'd like it better as a short if it breaks Monday's low on higher volume.

Looks like a retest of 800 on the Russell is around the corner.

The Nasdaq's intermediate-term trend is now down since it broke its 50-day moving average.

Home, home on the range... we're set for a small gap down, which will put the indices right in the middle of their ranges. (Yawn) Maybe some of these housing related stocks will follow-through to the downside...

On Today's Calendar:

• 10:00 -- Consumer Confidence

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• The stock is dead, long live commodities, says Jim Rogers
  The current stock market environment is similar to that of the 1970s with big trading ranges, which some people were able to exploit successfully. "But most people are not very good at this. They need to have a secular bull market
  (tags: stocks commodities investing)
• 3-30-07 Wallstrip Chat: Michael Covel
  Lindsay sits down with Michael Covel, author of “Turtle Trader” and “Trend Following”, and gets him to open the doors to the Turtle Trading Library.
  (tags: stocks video)
• For Easier Taxes, Plan Ahead
  For active traders, taxes can be difficult — and costly — if you’re not proactive. These tax-season tips can help fatten your refund check or lower your tax bill.
  (tags: taxes trading stocks investing)
• TraderFeed: Three Principles For Blogs And Businesses
  (tags: blogging for_TM)
• Why Traders Plan Trades But Don't Trade Their Plans
  (tags: trading)

Michelle B submits:

Having read a few comments at trading blogs---OK, I have read zillions---I have encountered more often than not, a frenzied, harried, stressful approach to time when one is trading. Some feel the demonic pressure crushing them as soon as the market opens; others feel enervated by its demands needling and pinpricking them throughout the trading day. Regard time, instead, as a wonderful and gracious friend, accommodating your need to focus and execute successful trades.

Specifically, I rely upon my friend, time, in three concrete ways:

I. Using Time frames

All time frames are useful and valuable--monthly, weekly, daily, hourly, thirty minute, fifteen minute, five minute, and last, but not least, one minute. My motto is: Fondle your candles. I look at my candlesticks lovingly and with great attention to details, sucking out the last bit of information they can give me. Certainly a graphic way of stating my point, but candlesticks of different time frames are worth the time upon which to ponder. Ah, time. We got it, so we need to use it well. And there they are, our helpful friends, all lined up, willing to protect our capital like dutiful soldiers, but we are too busy squandering time by not focusing and being distracted by all the action.

Often, time is used to oversee too many candidates or it is used to mind too many trades, so it is easier to just focus on one or two time frames, therefore resulting in the missing of much information. Some traders regard the one minute as dangerous, stimulating them to act foolish and blinding them to the smoother pattern of longer time frames. Others regard the longer time frames as concealing more pertinent details that only the shorter time frames can reveal. The disadvantages of one time frame is countered by the advantages of another, so using them all is truly taking advantage of those little bundles of time, with their high-quality content. In addition, looking at many time frames, will allow the beginner trader to learn the workings of the market. Checking out many time frames does not mean that you violate either your trading methodology or risk parameters.

II. Identifying, preparing for, and focusing on special time periods in the trading day

Already having discussed POT, I will address several other special times in the trading day.

1) 9:30 AM ET to 10:45 is a time of high volume, where usually a trend happens after a breakout in the opening range or consolidation.
2) 10:45 AM ET to Noon ET is when, following whatever trend that happened after the open, price will often consolidate during this time period on low to moderate volume.
3) Noon to 1:30 PM ET is when slow and steady trend continuing or reversals can happen on low to moderate volume.
4) 1:30 PM ET is when abrupt and pronounced continuation of trending or reversal on high volume can happen.
5) 2 PM ET (better known as POT) is also when abrupt and pronounced continuation of trending or reversal on high volume can happen.
6) 3 PM ET is yet again a possible time for either a high-volumed, abrupt, and pronounced continuation of trending or reversal happening.
7) 3:30 PM ET, yup, you guessed it, this particularly tricky time can trigger a very abrupt trend continuation or reversal on high volume.

III. Awareness of economic/seasonal events

It is important to know not only when earning releases are due, but also economic reports, options expirations, end of month and quarter, holidays, and seasonal times like the usual low-volume summertime.

Time is like beauty, in the sense how it can be interpreted differently in the eyes of the beholder. The above information was gleaned from actually trading the market over years. Each trader need to take the basic information and apply it to her/himself in order to make it their own so it will work equally well for them.

Michelle B submits:

Trading the second leg of two measured up legs separated by a bull flag is one my favorite trades, especially because the trade usually lasts only 30 to 60 minutes. In most cases, I will at least partially anticipate the breakout allowing me to keep a very tight stop loss.

What is noteworthy about this particular daytrade in PPL which I took Tuesday, March 27 is the smallness of the move. PPL is an electrical utility which got an upgrade premarket, and which I identified via the top gainers scan for the NYSE. Electrical utilities trading on the NYSE usually do not attract daytraders because intraday trading ranges are small. However, PPL made a new 52 week high and had high volume with a decent bid/ask spread.

Entering at 41.14 where the gently rising, one-minute 50 sma (blue line on the displayed chart) served as support and exiting at 41.46 resulted in only a .32 move. However, the stop loss was just .05, a couple pennies under the 50 sma support, so this small move packed a high R punch of 6. Because of such a small risk, I was able to trade a sizable lot resulting in a nice profit. So small can be big.

• Whole Foods (WFMI): The next Starbucks - MSN Money
  The 'emerging lifestyle' chain, known for high-quality goods and pleasant shopping environments, is on the verge of explosive growth that should double its stock price in three years.
  (tags: stocks toread)
• A Look At Kagi Charts
  This relatively unknown tool could help you find an asset's trend faster.
  (tags: stocks technicalanalysis)
• The Nintendo Wii gives NEW life to an old TREND - Gaming
  (tags: stocks)
• Stock Trends, Charts, and Commentary
  Are you letting your personal market opinion change how you read a chart? Here is the test ...
  (tags: stocks technicalanalysis)
• 3-28-07 MasterCard Incorporated (MA) | Wallstrip
  Going public and trending upwards: priceless. Making it easier to spend money with your MasterCard: also priceless.
  (tags: stocks)
• Sign of a Market Top?
  George Gilder has launched a hedge fund called the BetaZero Gilder Technology Fund.
  (tags: stocks hedgefunds)
• Looking Over The Shoulders Of A Successful Trader
  Would you be interested in peering over the shoulder of a profitable trader? one who has taken a $100,000 account and in less than three months grown it to $1.6 million?
  (tags: trading)
• Barry Ritholtz's Thoughts on Bernanke's Testimony
  This testimony makes clear (to me at least) drew precisely the wrong conclusion from the FOMC statement last week. Bernanke is now correcting that error via this speech.
  (tags: stocks economics)
• Trading And Information Processing: Why Traders "Sabotage" Themselves
  (tags: trading success Psychology toread)
• Ways to View Wikipedia on a PDA
  (tags: PDA wikipedia Reference palm Tools treo)

(Note: This will be the last regular post (watchlists & recaps) until this weekend. Look for the next recap this weekend once I'm back from New York.)

Trading was choppy & sloppy today as the market tried to digest Bernanke's comments. The bulls gave it a good try mid-day but the indices still closed near their lows for the day. Here's the intraday QQQQ chart (15 minute candles):

It's also interesting to note that Bernanke's clarified the Fed's stance on inflation and now the market has basically given back all of the post-Fed gains from last week. Here's the intraday S&P 500 chart showing the liftoff caused by the Fed decision / statement last Wednesday:

I thought I'd show the Multiple Moving Averages (MMAs) again. Here's the Nasdaq chart showing that last week's rally didn't hold long enough to flip the long-term group back to a bullish posture. I'm now on the lookout for that long-term group to spread out, showing a strengthening downtrend.

The S&P 500 closed beneath its 50 DMA and gave a stochastic sell signal. The obvious potential support level for it and the other indices is the mid point of the W-bottom made earlier this month -- around 1410 for the S&P and 2405 for the Nasdaq.

The Russell's back below 800.

Lot's of 'downgrades' today with all the moving average breaks.

The 'homies' (& their ilk) are in the news again with this FBI probe of Beazer Homes for mortgage lending fraud. So my group of homebuilders & lenders (BZH, KBH, LEN, DHI, CTX, PHM, TOL, CFC, WM, LEND, FMT, WFC...) will remain front & center on my monitors.

The S&P is set to gap under its 50-day moving average so things could get interesting today as that important technical level gets taken out. Perhaps Big Ben Bernanke can save the day. He speaks at 10:30. I'm not sure that he'll say anything market-moving but there's always that potential...

On Today's Calendar:

• 10:30 -- Crude Inventories

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• Patience Is A Trader's Virtue
  Although the best investors and traders understand the importance of patience, it is one of the most difficult skills to learn as an investor and trader.
  (tags: trading investing)
• Why I Am a Bear by Tim Knight
  The bear explains himself
  (tags: stocks)
• Hillenbrand Industries (HB) | Wallstrip
  Whether you’re checking in or checking out, Hillenbrand Industries (HB) has just the product for you….too bad they don’t make wooden stakes.
  (tags: stocks)
• Toby Crabel And The Epistemology Of Trading Expertise
  (tags: trading toread)

If you're in New York Friday night please stop by and help us celebrate the 100^th episode of WallStrip:

Come join us if you are in NEW YORK this Friday evening to celebrate the actors and crew that helped build Wallstrip through 100 plus shows.

It is at 54 Bond Street, 3rd Floor at 9 pm. Food, Drinks, Cramer 2 (maybe even the real Cramer) the Vampire, The Adobe Flasher, The Doctors, and yes… Lindsay.

Selling was broad-based today but there wasn't much volume behind it. The major indices each lost at least 0.5% on the day as they hover near their 50-day moving averages. The Dow and Nasdaq closed beneath their 'fiddies' and are close to giving stochastic sell signals. The S&P is only 3 points above its 50-day moving average and it sure seems likely that it will also break that line. But I can't get too excited about playing the short side here unless volume picks up. You know what they say about shorting a dull market...

Worden had an interesting S&P chart & comment tonight. He did another of his "kiss the channel goodbye" pieces today. In other words, the index broke down out of its channel and then rallied back to touch (kiss) the bottom of that channel before rolling over. The channel he used, which is shown below is a regression channel with parameters of 100, 17, 20:

Here's my S&P chart. My focus will be on the 50-day moving average tomorrow.

The Naz is looking like a short to me but I'd like it better as a short if it breaks Monday's low on higher volume.

Looks like a retest of 800 on the Russell is around the corner.

The Nasdaq's intermediate-term trend is now down since it broke its 50-day moving average.

Home, home on the range... we're set for a small gap down, which will put the indices right in the middle of their ranges. (Yawn) Maybe some of these housing related stocks will follow-through to the downside...

On Today's Calendar:

• 10:00 -- Consumer Confidence

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• The stock is dead, long live commodities, says Jim Rogers
  The current stock market environment is similar to that of the 1970s with big trading ranges, which some people were able to exploit successfully. "But most people are not very good at this. They need to have a secular bull market
  (tags: stocks commodities investing)
• 3-30-07 Wallstrip Chat: Michael Covel
  Lindsay sits down with Michael Covel, author of “Turtle Trader” and “Trend Following”, and gets him to open the doors to the Turtle Trading Library.
  (tags: stocks video)
• For Easier Taxes, Plan Ahead
  For active traders, taxes can be difficult — and costly — if you’re not proactive. These tax-season tips can help fatten your refund check or lower your tax bill.
  (tags: taxes trading stocks investing)
• TraderFeed: Three Principles For Blogs And Businesses
  (tags: blogging for_TM)
• Why Traders Plan Trades But Don't Trade Their Plans
  (tags: trading)

Michelle B submits:

Having read a few comments at trading blogs---OK, I have read zillions---I have encountered more often than not, a frenzied, harried, stressful approach to time when one is trading. Some feel the demonic pressure crushing them as soon as the market opens; others feel enervated by its demands needling and pinpricking them throughout the trading day. Regard time, instead, as a wonderful and gracious friend, accommodating your need to focus and execute successful trades.

Specifically, I rely upon my friend, time, in three concrete ways:

I. Using Time frames

All time frames are useful and valuable--monthly, weekly, daily, hourly, thirty minute, fifteen minute, five minute, and last, but not least, one minute. My motto is: Fondle your candles. I look at my candlesticks lovingly and with great attention to details, sucking out the last bit of information they can give me. Certainly a graphic way of stating my point, but candlesticks of different time frames are worth the time upon which to ponder. Ah, time. We got it, so we need to use it well. And there they are, our helpful friends, all lined up, willing to protect our capital like dutiful soldiers, but we are too busy squandering time by not focusing and being distracted by all the action.

Often, time is used to oversee too many candidates or it is used to mind too many trades, so it is easier to just focus on one or two time frames, therefore resulting in the missing of much information. Some traders regard the one minute as dangerous, stimulating them to act foolish and blinding them to the smoother pattern of longer time frames. Others regard the longer time frames as concealing more pertinent details that only the shorter time frames can reveal. The disadvantages of one time frame is countered by the advantages of another, so using them all is truly taking advantage of those little bundles of time, with their high-quality content. In addition, looking at many time frames, will allow the beginner trader to learn the workings of the market. Checking out many time frames does not mean that you violate either your trading methodology or risk parameters.

II. Identifying, preparing for, and focusing on special time periods in the trading day

Already having discussed POT, I will address several other special times in the trading day.

1) 9:30 AM ET to 10:45 is a time of high volume, where usually a trend happens after a breakout in the opening range or consolidation.
2) 10:45 AM ET to Noon ET is when, following whatever trend that happened after the open, price will often consolidate during this time period on low to moderate volume.
3) Noon to 1:30 PM ET is when slow and steady trend continuing or reversals can happen on low to moderate volume.
4) 1:30 PM ET is when abrupt and pronounced continuation of trending or reversal on high volume can happen.
5) 2 PM ET (better known as POT) is also when abrupt and pronounced continuation of trending or reversal on high volume can happen.
6) 3 PM ET is yet again a possible time for either a high-volumed, abrupt, and pronounced continuation of trending or reversal happening.
7) 3:30 PM ET, yup, you guessed it, this particularly tricky time can trigger a very abrupt trend continuation or reversal on high volume.

III. Awareness of economic/seasonal events

It is important to know not only when earning releases are due, but also economic reports, options expirations, end of month and quarter, holidays, and seasonal times like the usual low-volume summertime.

Time is like beauty, in the sense how it can be interpreted differently in the eyes of the beholder. The above information was gleaned from actually trading the market over years. Each trader need to take the basic information and apply it to her/himself in order to make it their own so it will work equally well for them.

Michelle B submits:

Trading the second leg of two measured up legs separated by a bull flag is one my favorite trades, especially because the trade usually lasts only 30 to 60 minutes. In most cases, I will at least partially anticipate the breakout allowing me to keep a very tight stop loss.

What is noteworthy about this particular daytrade in PPL which I took Tuesday, March 27 is the smallness of the move. PPL is an electrical utility which got an upgrade premarket, and which I identified via the top gainers scan for the NYSE. Electrical utilities trading on the NYSE usually do not attract daytraders because intraday trading ranges are small. However, PPL made a new 52 week high and had high volume with a decent bid/ask spread.

Entering at 41.14 where the gently rising, one-minute 50 sma (blue line on the displayed chart) served as support and exiting at 41.46 resulted in only a .32 move. However, the stop loss was just .05, a couple pennies under the 50 sma support, so this small move packed a high R punch of 6. Because of such a small risk, I was able to trade a sizable lot resulting in a nice profit. So small can be big.

• Whole Foods (WFMI): The next Starbucks - MSN Money
  The 'emerging lifestyle' chain, known for high-quality goods and pleasant shopping environments, is on the verge of explosive growth that should double its stock price in three years.
  (tags: stocks toread)
• A Look At Kagi Charts
  This relatively unknown tool could help you find an asset's trend faster.
  (tags: stocks technicalanalysis)
• The Nintendo Wii gives NEW life to an old TREND - Gaming
  (tags: stocks)
• Stock Trends, Charts, and Commentary
  Are you letting your personal market opinion change how you read a chart? Here is the test ...
  (tags: stocks technicalanalysis)
• 3-28-07 MasterCard Incorporated (MA) | Wallstrip
  Going public and trending upwards: priceless. Making it easier to spend money with your MasterCard: also priceless.
  (tags: stocks)
• Sign of a Market Top?
  George Gilder has launched a hedge fund called the BetaZero Gilder Technology Fund.
  (tags: stocks hedgefunds)
• Looking Over The Shoulders Of A Successful Trader
  Would you be interested in peering over the shoulder of a profitable trader? one who has taken a $100,000 account and in less than three months grown it to $1.6 million?
  (tags: trading)
• Barry Ritholtz's Thoughts on Bernanke's Testimony
  This testimony makes clear (to me at least) drew precisely the wrong conclusion from the FOMC statement last week. Bernanke is now correcting that error via this speech.
  (tags: stocks economics)
• Trading And Information Processing: Why Traders "Sabotage" Themselves
  (tags: trading success Psychology toread)
• Ways to View Wikipedia on a PDA
  (tags: PDA wikipedia Reference palm Tools treo)

(Note: This will be the last regular post (watchlists & recaps) until this weekend. Look for the next recap this weekend once I'm back from New York.)

Trading was choppy & sloppy today as the market tried to digest Bernanke's comments. The bulls gave it a good try mid-day but the indices still closed near their lows for the day. Here's the intraday QQQQ chart (15 minute candles):

It's also interesting to note that Bernanke's clarified the Fed's stance on inflation and now the market has basically given back all of the post-Fed gains from last week. Here's the intraday S&P 500 chart showing the liftoff caused by the Fed decision / statement last Wednesday:

I thought I'd show the Multiple Moving Averages (MMAs) again. Here's the Nasdaq chart showing that last week's rally didn't hold long enough to flip the long-term group back to a bullish posture. I'm now on the lookout for that long-term group to spread out, showing a strengthening downtrend.

The S&P 500 closed beneath its 50 DMA and gave a stochastic sell signal. The obvious potential support level for it and the other indices is the mid point of the W-bottom made earlier this month -- around 1410 for the S&P and 2405 for the Nasdaq.

The Russell's back below 800.

Lot's of 'downgrades' today with all the moving average breaks.

The 'homies' (& their ilk) are in the news again with this FBI probe of Beazer Homes for mortgage lending fraud. So my group of homebuilders & lenders (BZH, KBH, LEN, DHI, CTX, PHM, TOL, CFC, WM, LEND, FMT, WFC...) will remain front & center on my monitors.

The S&P is set to gap under its 50-day moving average so things could get interesting today as that important technical level gets taken out. Perhaps Big Ben Bernanke can save the day. He speaks at 10:30. I'm not sure that he'll say anything market-moving but there's always that potential...

On Today's Calendar:

• 10:30 -- Crude Inventories

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• Patience Is A Trader's Virtue
  Although the best investors and traders understand the importance of patience, it is one of the most difficult skills to learn as an investor and trader.
  (tags: trading investing)
• Why I Am a Bear by Tim Knight
  The bear explains himself
  (tags: stocks)
• Hillenbrand Industries (HB) | Wallstrip
  Whether you’re checking in or checking out, Hillenbrand Industries (HB) has just the product for you….too bad they don’t make wooden stakes.
  (tags: stocks)
• Toby Crabel And The Epistemology Of Trading Expertise
  (tags: trading toread)

If you're in New York Friday night please stop by and help us celebrate the 100^th episode of WallStrip:

Come join us if you are in NEW YORK this Friday evening to celebrate the actors and crew that helped build Wallstrip through 100 plus shows.

It is at 54 Bond Street, 3rd Floor at 9 pm. Food, Drinks, Cramer 2 (maybe even the real Cramer) the Vampire, The Adobe Flasher, The Doctors, and yes… Lindsay.

Selling was broad-based today but there wasn't much volume behind it. The major indices each lost at least 0.5% on the day as they hover near their 50-day moving averages. The Dow and Nasdaq closed beneath their 'fiddies' and are close to giving stochastic sell signals. The S&P is only 3 points above its 50-day moving average and it sure seems likely that it will also break that line. But I can't get too excited about playing the short side here unless volume picks up. You know what they say about shorting a dull market...

Worden had an interesting S&P chart & comment tonight. He did another of his "kiss the channel goodbye" pieces today. In other words, the index broke down out of its channel and then rallied back to touch (kiss) the bottom of that channel before rolling over. The channel he used, which is shown below is a regression channel with parameters of 100, 17, 20:

Here's my S&P chart. My focus will be on the 50-day moving average tomorrow.

The Naz is looking like a short to me but I'd like it better as a short if it breaks Monday's low on higher volume.

Looks like a retest of 800 on the Russell is around the corner.

The Nasdaq's intermediate-term trend is now down since it broke its 50-day moving average.

Home, home on the range... we're set for a small gap down, which will put the indices right in the middle of their ranges. (Yawn) Maybe some of these housing related stocks will follow-through to the downside...

On Today's Calendar:

• 10:00 -- Consumer Confidence

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• The stock is dead, long live commodities, says Jim Rogers
  The current stock market environment is similar to that of the 1970s with big trading ranges, which some people were able to exploit successfully. "But most people are not very good at this. They need to have a secular bull market
  (tags: stocks commodities investing)
• 3-30-07 Wallstrip Chat: Michael Covel
  Lindsay sits down with Michael Covel, author of “Turtle Trader” and “Trend Following”, and gets him to open the doors to the Turtle Trading Library.
  (tags: stocks video)
• For Easier Taxes, Plan Ahead
  For active traders, taxes can be difficult — and costly — if you’re not proactive. These tax-season tips can help fatten your refund check or lower your tax bill.
  (tags: taxes trading stocks investing)
• TraderFeed: Three Principles For Blogs And Businesses
  (tags: blogging for_TM)
• Why Traders Plan Trades But Don't Trade Their Plans
  (tags: trading)

Michelle B submits:

Having read a few comments at trading blogs---OK, I have read zillions---I have encountered more often than not, a frenzied, harried, stressful approach to time when one is trading. Some feel the demonic pressure crushing them as soon as the market opens; others feel enervated by its demands needling and pinpricking them throughout the trading day. Regard time, instead, as a wonderful and gracious friend, accommodating your need to focus and execute successful trades.

Specifically, I rely upon my friend, time, in three concrete ways:

I. Using Time frames

All time frames are useful and valuable--monthly, weekly, daily, hourly, thirty minute, fifteen minute, five minute, and last, but not least, one minute. My motto is: Fondle your candles. I look at my candlesticks lovingly and with great attention to details, sucking out the last bit of information they can give me. Certainly a graphic way of stating my point, but candlesticks of different time frames are worth the time upon which to ponder. Ah, time. We got it, so we need to use it well. And there they are, our helpful friends, all lined up, willing to protect our capital like dutiful soldiers, but we are too busy squandering time by not focusing and being distracted by all the action.

Often, time is used to oversee too many candidates or it is used to mind too many trades, so it is easier to just focus on one or two time frames, therefore resulting in the missing of much information. Some traders regard the one minute as dangerous, stimulating them to act foolish and blinding them to the smoother pattern of longer time frames. Others regard the longer time frames as concealing more pertinent details that only the shorter time frames can reveal. The disadvantages of one time frame is countered by the advantages of another, so using them all is truly taking advantage of those little bundles of time, with their high-quality content. In addition, looking at many time frames, will allow the beginner trader to learn the workings of the market. Checking out many time frames does not mean that you violate either your trading methodology or risk parameters.

II. Identifying, preparing for, and focusing on special time periods in the trading day

Already having discussed POT, I will address several other special times in the trading day.

1) 9:30 AM ET to 10:45 is a time of high volume, where usually a trend happens after a breakout in the opening range or consolidation.
2) 10:45 AM ET to Noon ET is when, following whatever trend that happened after the open, price will often consolidate during this time period on low to moderate volume.
3) Noon to 1:30 PM ET is when slow and steady trend continuing or reversals can happen on low to moderate volume.
4) 1:30 PM ET is when abrupt and pronounced continuation of trending or reversal on high volume can happen.
5) 2 PM ET (better known as POT) is also when abrupt and pronounced continuation of trending or reversal on high volume can happen.
6) 3 PM ET is yet again a possible time for either a high-volumed, abrupt, and pronounced continuation of trending or reversal happening.
7) 3:30 PM ET, yup, you guessed it, this particularly tricky time can trigger a very abrupt trend continuation or reversal on high volume.

III. Awareness of economic/seasonal events

It is important to know not only when earning releases are due, but also economic reports, options expirations, end of month and quarter, holidays, and seasonal times like the usual low-volume summertime.

Time is like beauty, in the sense how it can be interpreted differently in the eyes of the beholder. The above information was gleaned from actually trading the market over years. Each trader need to take the basic information and apply it to her/himself in order to make it their own so it will work equally well for them.

Michelle B submits:

Trading the second leg of two measured up legs separated by a bull flag is one my favorite trades, especially because the trade usually lasts only 30 to 60 minutes. In most cases, I will at least partially anticipate the breakout allowing me to keep a very tight stop loss.

What is noteworthy about this particular daytrade in PPL which I took Tuesday, March 27 is the smallness of the move. PPL is an electrical utility which got an upgrade premarket, and which I identified via the top gainers scan for the NYSE. Electrical utilities trading on the NYSE usually do not attract daytraders because intraday trading ranges are small. However, PPL made a new 52 week high and had high volume with a decent bid/ask spread.

Entering at 41.14 where the gently rising, one-minute 50 sma (blue line on the displayed chart) served as support and exiting at 41.46 resulted in only a .32 move. However, the stop loss was just .05, a couple pennies under the 50 sma support, so this small move packed a high R punch of 6. Because of such a small risk, I was able to trade a sizable lot resulting in a nice profit. So small can be big.

• Whole Foods (WFMI): The next Starbucks - MSN Money
  The 'emerging lifestyle' chain, known for high-quality goods and pleasant shopping environments, is on the verge of explosive growth that should double its stock price in three years.
  (tags: stocks toread)
• A Look At Kagi Charts
  This relatively unknown tool could help you find an asset's trend faster.
  (tags: stocks technicalanalysis)
• The Nintendo Wii gives NEW life to an old TREND - Gaming
  (tags: stocks)
• Stock Trends, Charts, and Commentary
  Are you letting your personal market opinion change how you read a chart? Here is the test ...
  (tags: stocks technicalanalysis)
• 3-28-07 MasterCard Incorporated (MA) | Wallstrip
  Going public and trending upwards: priceless. Making it easier to spend money with your MasterCard: also priceless.
  (tags: stocks)
• Sign of a Market Top?
  George Gilder has launched a hedge fund called the BetaZero Gilder Technology Fund.
  (tags: stocks hedgefunds)
• Looking Over The Shoulders Of A Successful Trader
  Would you be interested in peering over the shoulder of a profitable trader? one who has taken a $100,000 account and in less than three months grown it to $1.6 million?
  (tags: trading)
• Barry Ritholtz's Thoughts on Bernanke's Testimony
  This testimony makes clear (to me at least) drew precisely the wrong conclusion from the FOMC statement last week. Bernanke is now correcting that error via this speech.
  (tags: stocks economics)
• Trading And Information Processing: Why Traders "Sabotage" Themselves
  (tags: trading success Psychology toread)
• Ways to View Wikipedia on a PDA
  (tags: PDA wikipedia Reference palm Tools treo)

(Note: This will be the last regular post (watchlists & recaps) until this weekend. Look for the next recap this weekend once I'm back from New York.)

Trading was choppy & sloppy today as the market tried to digest Bernanke's comments. The bulls gave it a good try mid-day but the indices still closed near their lows for the day. Here's the intraday QQQQ chart (15 minute candles):

It's also interesting to note that Bernanke's clarified the Fed's stance on inflation and now the market has basically given back all of the post-Fed gains from last week. Here's the intraday S&P 500 chart showing the liftoff caused by the Fed decision / statement last Wednesday:

I thought I'd show the Multiple Moving Averages (MMAs) again. Here's the Nasdaq chart showing that last week's rally didn't hold long enough to flip the long-term group back to a bullish posture. I'm now on the lookout for that long-term group to spread out, showing a strengthening downtrend.

The S&P 500 closed beneath its 50 DMA and gave a stochastic sell signal. The obvious potential support level for it and the other indices is the mid point of the W-bottom made earlier this month -- around 1410 for the S&P and 2405 for the Nasdaq.

The Russell's back below 800.

Lot's of 'downgrades' today with all the moving average breaks.

The 'homies' (& their ilk) are in the news again with this FBI probe of Beazer Homes for mortgage lending fraud. So my group of homebuilders & lenders (BZH, KBH, LEN, DHI, CTX, PHM, TOL, CFC, WM, LEND, FMT, WFC...) will remain front & center on my monitors.

The S&P is set to gap under its 50-day moving average so things could get interesting today as that important technical level gets taken out. Perhaps Big Ben Bernanke can save the day. He speaks at 10:30. I'm not sure that he'll say anything market-moving but there's always that potential...

On Today's Calendar:

• 10:30 -- Crude Inventories

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• Patience Is A Trader's Virtue
  Although the best investors and traders understand the importance of patience, it is one of the most difficult skills to learn as an investor and trader.
  (tags: trading investing)
• Why I Am a Bear by Tim Knight
  The bear explains himself
  (tags: stocks)
• Hillenbrand Industries (HB) | Wallstrip
  Whether you’re checking in or checking out, Hillenbrand Industries (HB) has just the product for you….too bad they don’t make wooden stakes.
  (tags: stocks)
• Toby Crabel And The Epistemology Of Trading Expertise
  (tags: trading toread)

If you're in New York Friday night please stop by and help us celebrate the 100^th episode of WallStrip:

Come join us if you are in NEW YORK this Friday evening to celebrate the actors and crew that helped build Wallstrip through 100 plus shows.

It is at 54 Bond Street, 3rd Floor at 9 pm. Food, Drinks, Cramer 2 (maybe even the real Cramer) the Vampire, The Adobe Flasher, The Doctors, and yes… Lindsay.

Selling was broad-based today but there wasn't much volume behind it. The major indices each lost at least 0.5% on the day as they hover near their 50-day moving averages. The Dow and Nasdaq closed beneath their 'fiddies' and are close to giving stochastic sell signals. The S&P is only 3 points above its 50-day moving average and it sure seems likely that it will also break that line. But I can't get too excited about playing the short side here unless volume picks up. You know what they say about shorting a dull market...

Worden had an interesting S&P chart & comment tonight. He did another of his "kiss the channel goodbye" pieces today. In other words, the index broke down out of its channel and then rallied back to touch (kiss) the bottom of that channel before rolling over. The channel he used, which is shown below is a regression channel with parameters of 100, 17, 20:

Here's my S&P chart. My focus will be on the 50-day moving average tomorrow.

The Naz is looking like a short to me but I'd like it better as a short if it breaks Monday's low on higher volume.

Looks like a retest of 800 on the Russell is around the corner.

The Nasdaq's intermediate-term trend is now down since it broke its 50-day moving average.

Home, home on the range... we're set for a small gap down, which will put the indices right in the middle of their ranges. (Yawn) Maybe some of these housing related stocks will follow-through to the downside...

On Today's Calendar:

• 10:00 -- Consumer Confidence

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

• The stock is dead, long live commodities, says Jim Rogers
  The current stock market environment is similar to that of the 1970s with big trading ranges, which some people were able to exploit successfully. "But most people are not very good at this. They need to have a secular bull market
  (tags: stocks commodities investing)
• 3-30-07 Wallstrip Chat: Michael Covel
  Lindsay sits down with Michael Covel, author of “Turtle Trader” and “Trend Following”, and gets him to open the doors to the Turtle Trading Library.
  (tags: stocks video)
• For Easier Taxes, Plan Ahead
  For active traders, taxes can be difficult — and costly — if you’re not proactive. These tax-season tips can help fatten your refund check or lower your tax bill.
  (tags: taxes trading stocks investing)
• TraderFeed: Three Principles For Blogs And Businesses
  (tags: blogging for_TM)
• Why Traders Plan Trades But Don't Trade Their Plans
  (tags: trading)

Michelle B submits:

Having read a few comments at trading blogs---OK, I have read zillions---I have encountered more often than not, a frenzied, harried, stressful approach to time when one is trading. Some feel the demonic pressure crushing them as soon as the market opens; others feel enervated by its demands needling and pinpricking them throughout the trading day. Regard time, instead, as a wonderful and gracious friend, accommodating your need to focus and execute successful trades.

Specifically, I rely upon my friend, time, in three concrete ways:

I. Using Time frames

All time frames are useful and valuable--monthly, weekly, daily, hourly, thirty minute, fifteen minute, five minute, and last, but not least, one minute. My motto is: Fondle your candles. I look at my candlesticks lovingly and with great attention to details, sucking out the last bit of information they can give me. Certainly a graphic way of stating my point, but candlesticks of different time frames are worth the time upon which to ponder. Ah, time. We got it, so we need to use it well. And there they are, our helpful friends, all lined up, willing to protect our capital like dutiful soldiers, but we are too busy squandering time by not focusing and being distracted by all the action.

Often, time is used to oversee too many candidates or it is used to mind too many trades, so it is easier to just focus on one or two time frames, therefore resulting in the missing of much information. Some traders regard the one minute as dangerous, stimulating them to act foolish and blinding them to the smoother pattern of longer time frames. Others regard the longer time frames as concealing more pertinent details that only the shorter time frames can reveal. The disadvantages of one time frame is countered by the advantages of another, so using them all is truly taking advantage of those little bundles of time, with their high-quality content. In addition, looking at many time frames, will allow the beginner trader to learn the workings of the market. Checking out many time frames does not mean that you violate either your trading methodology or risk parameters.

II. Identifying, preparing for, and focusing on special time periods in the trading day

Already having discussed POT, I will address several other special times in the trading day.

1) 9:30 AM ET to 10:45 is a time of high volume, where usually a trend happens after a breakout in the opening range or consolidation.
2) 10:45 AM ET to Noon ET is when, following whatever trend that happened after the open, price will often consolidate during this time period on low to moderate volume.
3) Noon to 1:30 PM ET is when slow and steady trend continuing or reversals can happen on low to moderate volume.
4) 1:30 PM ET is when abrupt and pronounced continuation of trending or reversal on high volume can happen.
5) 2 PM ET (better known as POT) is also when abrupt and pronounced continuation of trending or reversal on high volume can happen.
6) 3 PM ET is yet again a possible time for either a high-volumed, abrupt, and pronounced continuation of trending or reversal happening.
7) 3:30 PM ET, yup, you guessed it, this particularly tricky time can trigger a very abrupt trend continuation or reversal on high volume.

III. Awareness of economic/seasonal events

It is important to know not only when earning releases are due, but also economic reports, options expirations, end of month and quarter, holidays, and seasonal times like the usual low-volume summertime.

Time is like beauty, in the sense how it can be interpreted differently in the eyes of the beholder. The above information was gleaned from actually trading the market over years. Each trader need to take the basic information and apply it to her/himself in order to make it their own so it will work equally well for them.

Michelle B submits:

Trading the second leg of two measured up legs separated by a bull flag is one my favorite trades, especially because the trade usually lasts only 30 to 60 minutes. In most cases, I will at least partially anticipate the breakout allowing me to keep a very tight stop loss.

What is noteworthy about this particular daytrade in PPL which I took Tuesday, March 27 is the smallness of the move. PPL is an electrical utility which got an upgrade premarket, and which I identified via the top gainers scan for the NYSE. Electrical utilities trading on the NYSE usually do not attract daytraders because intraday trading ranges are small. However, PPL made a new 52 week high and had high volume with a decent bid/ask spread.

Entering at 41.14 where the gently rising, one-minute 50 sma (blue line on the displayed chart) served as support and exiting at 41.46 resulted in only a .32 move. However, the stop loss was just .05, a couple pennies under the 50 sma support, so this small move packed a high R punch of 6. Because of such a small risk, I was able to trade a sizable lot resulting in a nice profit. So small can be big.

• Whole Foods (WFMI): The next Starbucks - MSN Money
  The 'emerging lifestyle' chain, known for high-quality goods and pleasant shopping environments, is on the verge of explosive growth that should double its stock price in three years.
  (tags: stocks toread)
• A Look At Kagi Charts
  This relatively unknown tool could help you find an asset's trend faster.
  (tags: stocks technicalanalysis)
• The Nintendo Wii gives NEW life to an old TREND - Gaming
  (tags: stocks)
• Stock Trends, Charts, and Commentary
  Are you l