March 28, 2013, 9 a.m.
Good Morning Traders~
Another opportunity Wednesday for micro-traders and hyper active day traders to buy the gap down dip into short-term support yesterday keeps the markets in check to the down side and resistance and $DJI over-bought key stocks are keeping a cap on further range expansion to the upside. But the markets want to grind higher exactly opposite of the selling we saw last year in May. initially stared with aggressive selling then tricked down to daily lower lows.
The dip shave been bought the past several months 3-4 and now we go into April after a long weekend rest to gauge the ability for the bulls to put cash to work up at the high $SPX 1550+ levels. So dips will rule but from what levels? Higher highs or progressive lower highs?
My model is not getting any entries and this is due to the over extension on the daily charts or the pull-backs are not triggering due to lack of buying after the 4-5 day. Then this creates a lack of strength on a weekly chart and my model puts a lot of emphasis on the weekly charts for strength.So I’m not seeing any real follow through after consolidation phases in a lot of stock at this point in time.
In the end, April will be the same old story for the first week or so. I feel as the markets will hold their ground. I will look for the NASDAQ ($NDX) to breakout and IF this happens (QQQ > 69 as a close I will probably get an entry in my ETF QLD I’m running on the TTT model. This will boost the $SPX to help it go to new highs but we may get a huge shift in money running to the Tech lagers fast. I would target SMH (Semi-Conductor Holders) for the run. I’m running GOOG and PCLN in the event we get the $NDX breakout.
See the “Decision Making” tab for the TTT system pending list.
March 27, 2013, 9:23 a.m.
Do not miss this important training webinar that covers my trading model, understanding the importance of a system plan and getting started with turning your strategies into trading systems.
For approximately one hour of your time, you will understand how trading models are created, tested and run to limit the outside noise and emotional distractions of the markets.
The webinar start Thursday evening at 6:00 pm eastern and will last for no less than one hour.
Have a great trading day!