Breakdown Watch 4.23.12

“Trend is your friend” and it works to the downside too. From what the charts are saying the risk/reward is to the downside. That won’t change until buyers step in, which could be Monday or in 6 weeks. Don’t fight the tape.

Looking at this SPY chart this morning I started thinking I might be looking for reasons to start selling short. Perhaps, I was over analyzing the chart and developing a dangerous bias.

I cleared everything off and took a step back, looking at a larger time frame this rising wedge was the first thing that popped out at me. We’re heading lower, in my opinion.

Same chart as the $IWM

I am watching a few longs but the majority of my focus will be on shorting this correction. When stocks breakdown, they breakdown down fast and violent. People as a whole are irrational and panic easily. This is why stocks can grind and grind higher for months and give it all back in a day or two. Large moves available for capture but you have to act quickly.

I am currently long $RTN. We closed below this resistance level but were sitting above it the majority of the day. I am chasing here (because lack of volume) so I am light and have a tight stop.

CVS – This one caught my attention during my scans. Nice rising ascending triangle intact. You could buy here for a nice risk/reward entry.

ACE – This one has seen heavy buying volume the last two days and cleared resistance levels. May see a follow through day on Monday.

Shorts

INTC – Still watching this rising wedge. When the failure happens on heavy volume I’ll sell short.

AAPL – Watching closely for a close below Tuesday’s (4.17.12) lows for the next leg lower.  Note* Earnings after hours on 4.24.12.

CMG – Losing major support on huge selling volume. This one is heading lower.

MCD – Support becoming resistance. Setting up for lower prices, would love to buy some puts after another test of the descending trend line.


Enjoy the rest of your weekends,
@affluenzavirus

12 Responses to “Breakdown Watch 4.23.12”

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Comments are closed.
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Breakdown Watch 4.23.12

“Trend is your friend” and it works to the downside too. From what the charts are saying the risk/reward is to the downside. That won’t change until buyers step in, which could be Monday or in 6 weeks. Don’t fight the tape.

Looking at this SPY chart this morning I started thinking I might be looking for reasons to start selling short. Perhaps, I was over analyzing the chart and developing a dangerous bias.

I cleared everything off and took a step back, looking at a larger time frame this rising wedge was the first thing that popped out at me. We’re heading lower, in my opinion.

Same chart as the $IWM

I am watching a few longs but the majority of my focus will be on shorting this correction. When stocks breakdown, they breakdown down fast and violent. People as a whole are irrational and panic easily. This is why stocks can grind and grind higher for months and give it all back in a day or two. Large moves available for capture but you have to act quickly.

I am currently long $RTN. We closed below this resistance level but were sitting above it the majority of the day. I am chasing here (because lack of volume) so I am light and have a tight stop.

CVS – This one caught my attention during my scans. Nice rising ascending triangle intact. You could buy here for a nice risk/reward entry.

ACE – This one has seen heavy buying volume the last two days and cleared resistance levels. May see a follow through day on Monday.

Shorts

INTC – Still watching this rising wedge. When the failure happens on heavy volume I’ll sell short.

AAPL – Watching closely for a close below Tuesday’s (4.17.12) lows for the next leg lower.  Note* Earnings after hours on 4.24.12.

CMG – Losing major support on huge selling volume. This one is heading lower.

MCD – Support becoming resistance. Setting up for lower prices, would love to buy some puts after another test of the descending trend line.


Enjoy the rest of your weekends,
@affluenzavirus

12 Responses to “Breakdown Watch 4.23.12”

  1. Many thanks for all your efforts that you’ve invest this type of. worth it to learn details.? A excellent exile? azines life isn’t any living.? through Leonidas relating to Tarentum.

  2. I have asked several questions, and many of the replies suggest that I consider FIREFOX. I’m not sure what it is – probably a browser. Is it similar to Netscape and Internet Explorer? What are its good features and its bad features?.

  3. AffluenzaVirus

    I like FireFox. Use it on one of my machines. It rarely crashes. You can google “firefox” and download the browser free from mozilla.

  4. Hey about i do believe your weblog is moderately full pleasant i discovered it in google and that i set it on my favourite record want to see additional nice posts from u shortly.

  5. Its wonderful as your other posts : D, regards for posting . “Always be nice to people on the way up because you’ll meet the same people on the way down.” by Wilson Mizner.

  6. Hello! I simply wish to give an enormous thumbs up for the nice information you have here on this post. I will be coming again to your weblog for more soon.

  7. Wow! This could be one particular of the most helpful blogs We have ever arrive across on this subject. Actually Wonderful. I am also an expert in this topic so I can understand your hard work.

  8. I was just seeking this info for a while. After six hours of continuous Googleing, finally I got it in your website. I wonder what’s the lack of Google strategy that do not rank this kind of informative web sites in top of the list. Generally the top websites are full of garbage.

  9. A person essentially help to make seriously articles I would state. This is the first time I frequented your web page and thus far? I surprised with the research you made to create this particular publish incredible. Great job!

  10. It is really a different article posted in this blog and makes users to feel interesting while reading the content. I am happy to say that all the content that I have read from this blog really helped in many ways.

Comments are closed.