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Fridays for me are spend going through hundreds of charts and during this research session I try to keep a close eye on the markets and take any trades that might be setting up for next week. Well what a day to be on the other side of the mic! The Nasdaq just got pummeled down over 100 points and the Dow and S&P also put in some negative candles.

 

Going into this morning I thought there was a good chance to sell the news (Jobs Report) and the market did just that. The markets did sell, and did it in a way that leads me to believe we have some more downside. Here are some important keys to today's action.

 

1. The $SPX (S&P) traded higher then yesterdays highs which is also a new all time high, then closed lower then yesterdays low making the candle a bearish outside (engulfing pattern)

 

2. The Engulfing pattern happened when we were overbought on the daily..This is the criteria I use for a true reversal I want to have a overbought or oversold reading when the candle is formed.

 

3. Volume was higher on this then the previous 3 days.

 

4. The key takeaway here is the crossover on the daily stochastics and the the large area underneath us that can be tested and still keep this market technically sound.

 

On a positive note for Monday we got oversold quickly on the 60 min time frame based on the stochastics oscillator and this has been a very reliable signal for a short term move up.

 

So that's the outlook for early next week, Looking for very short term recovery possibly into Tuesday and then watch how far we get on any bounce and look for that failure that should lead to some further downside.

 

1800 on the S&P is definitely a possibility down the road.

 

I put out a early watch list during the day and a more focused watch list of some scalps I will be taking early in the week both can be found here. I go back over some key charts in both video's so you might have some duplicate info if time is an issue then watch the second one down on the page.

 

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Chart 1 Larger Image View

 

spxdailybearenhulfing.png

 

Chart 2

 

One last note:

 

The hardest thing to do is call a top ..even though this look like a great combination of bearish signals this market has proven the bears wrong time and time again when it comes to calling a correction (7%-10%)

 

 

DayTraderRockStar

Edited by daytradingradio

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Market Radar for April 22nd 2014 Slight Bearish Bias

 

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A slow day as a lot of markets still on Easter and Passover holiday, Tomorrow things should heat up again and even though I am expecting more upside I am not sure we hold the gains. Calling for a slight negative bias later in that day and overall 1 arrow down day. Market feels like its climbing that wall of worry again. This could easily continue as the rally's in the past flag averaged over 8 days.

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BEST BET FOR NEXT WEEK $AKAM

 

Doing some extra scanning today and came up a great opportunity, Most of the notes are on the chart so I won't retype them here except for to mention as I was doing some deeper research I found that most analyst reiterated there Buy rating or upgraded the stock since the beginning of 2014. One company Maxim covers the stock and they have a Buy rating and a 44 dollar target. This is or course back in 2013 and they have not yet updated there coverage of AKAM. So we should get a target raise on AKAM for at least one more analyst.

akam-best-bet.png

Link Chart 1 Larger Image View

Live Image View

 

akam-targets.jpg

Chart 2

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Market Direction Forecast for Tuesday April 29th Plus 3 stocks to watch for follow through

 

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The title says it all, Based mainly on the daily chart we are looking very good for today and I am giving it a 2 arrow up day. Best setup for today $AMGN , $WDAY, $IP,$LULU.

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Market Radar for Fed Day April 30th watch for new highs!!

 

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Today's action was a classic example of a Fed day and a Pre Fed day, today at 2:00pm we have the FOMC rate decision and statement. Expect an early bolt out of the gate then more of what we experienced today, a tightening of the range as we get closer to 2:00pm. I always treat Fed days a little different then a normal trading day in that there usually is not a lot of range and getting into something could be a frustration trade until after 2pm. Don't trade out of boredom!

 

My Market Radar for tomorrow is a bold call for new highs on the SPX (S&P500), Markets have been very resilient and new highs seems in the cards. Looking at tomorrow to be the catalyst for that move. If we do get selling after the statement I don't expect it to be the start of any significant selling and still would expect new highs sooner then later.

 

The Reversal Candles that were discussed yesterday were LULU, AMGN and WDAY. and WDAY was the best performer followed by LULU both had there follow through days and AMGN closed close to yesterday highs and we are still looking great as the stochastics are coiled and ready to be sprung so watch this close today.

 

AKAM gave us a great close and also expecting follow through today as a lane divergence play.

 

Watching AMT as a small flag setting up.

 

MPEL showing up on the radar

 

PCP Higher low on the stochastics expecting a channel breakout.

 

The rest to be discussed premarket

 

 

DTRS

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LL

 

Let the market show you where the top is don't try to guess. Look for more shorter time frame trades 60 min and 5 min and on the HPS quality stocks. Biggest question I get is it to late to get into such and such stock? yesterday's best bets all led the market higher ..when in my eyes they did! UA, LULU, GOOG, TRIP. These stocks were some of the best set ups for this week. I want you to strive to only trade the best set ups and reap the rewards. Today I want to see some follow through in both LULU and UA. More research later.

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LL

Market Radar for May 16th Bearish Lane Divergence possible

 

The possibility of a bearish Lane Divergence setting up is making me a bit nervous going into tomorrow, The Lane divergences on recent stocks have shown a great 2 day follow through when the divergence was confirmed with the cross over signal of the stochastics. Well we have that now setting up on the down side and today was the cross over, Fridays are always tricky and even though we have the daily divergence triggering we still have the 60 min oversold and that has not disappointing in a long time.. Daily negative and 60 min positive on the fact we are oversold, but could turn negative as we could be getting embedded. Cautious outlook for tomorrow and looking for great trades off the tradeometer,

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LL

What charts you want to trade in this market.

 

Some notes on the market and what to expect as the summer trade comes into effect.

 

As school wraps up for the summer more and more traders will be focused on vacations and family obligations this will be seen in the markets by lighter volume and in some ways a lack of enthusiasm. This does not prevent us from profiting in the market. In this post I want to show you what type of trades I will be committed to bring you each week.

 

In bringing you these HPS (High Probability Setups) I want to remind you of the underlying rules that you want to continue to stay aware of that will only make your trading more profitable. One of my favorite analogies is comparing trading to baseball and when you think of the characteristics that make up a great baseball player (we are talking hitting) It comes down to not swinging at bad pitches and putting yourself in the best position to make contact and get the ball in play. Wait for your Trade!!

 

Below is what I call waiting for your pitch. You will continue to get these pitched over the plate for you each week. If you have a know anything about the markets then you know that there is no sure things only great opportunities that come around periodically the HPS site delivered these to you before they move so you can decide which trade is best for you. These are trades of the watch list form the last 2 weeks.

 

Here is a current active one that I am in right now and about to take profits

 

cboe-wedge-hps.png

CBOE Larger image view

 

This next one is a great quality company that has the recognizable channel and multiple time frames lining. You can see the results from this

 

ua-hps.png

UA larger image view

 

This Next setup is another falling wedge pattern similar to the current CBOE look for the same type of performance.

 

lmca-wedge-hps.png

LMCA larger image view

 

We continue to jump on any Lane Divergences that cross my path this past week has been great for these. If there is one great technique that does not have you chasing a stock it the "Lane Divergence" I have a lot of education on this important indicator on the site.

 

mdrx-lane-hps.png

MDRX Larger image view

 

Another Lane Divergence

 

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IACI Larger image view

The list goes on and on. DNKN was also a Lane Divergence and you can see each chart comes with the buy trigger defined with target and stop. Each of these are discussed on the weekend video that goes out with the watch list giving you a great lesson on how to spot and chart them out.

 

one last note before i get out of office SLV looking great and GLD this could be the beginning of a bigger move in Metals.. and does the situation in Iraq escalate and effect the markets..

 

Have a great weekend

 

John

 

DTRS

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Charts showing a nice chance for a pullback this week in S&P 500 (Great Info)

 

Last weeks rising wedge broke down to give us a nice profit in the VXX and the 60 min had once again called the bottom, and we bounced nice from there but I am seeing some indications of more weakness ahead. This is shown in the video along with some great set ups for next week

 

NOTE: if this this weak pattern confirms itself with a break down then I would consider patterns to be subject to failure and I will look at a case by case scenario on the longs I am holding.

 

rising-wedge-in-spx-july.png

Link to Chart Larger Image View

 

As of right now the 60 is close to being oversold and we could easily continue to move higher. I will take off the VXX on a move back up above 1991 on the SPX. Even before if the market looks strong.

 

The Longs are set up nice so business as usual with those wai t- strike-and-take profits.

 

$EAT is one of 3 Best Bets and the stocks on this list are in some of the best zones I've seen in a long time. Watch for the Special alert in $MON there are 2 scenarios I like the alert on the HPS Page.

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