The bulls gave up the initiative last week, as the bears aggressively turned us away from that stubborn late June resistance, which is around 1130 on the S&P 500. Going into this week, the temptation is to automatically assume that the bears will take us back down to the July 1st lows at 1010. Just as quickly as everyone seemingly became bullish, they have now become bearish. However, in addition to The PPT signaling that the next broad market move is higher, I am seeing many charts of stocks that have broken out, and only recently pulled back to what should be support zones. Perhaps some excellent short selling setups will present themselves soon, but for now I believe the easy bear money was made last week during the rapid selloff.
Below, you will find my best trading ideas for the upcoming week. Feel free to pick and choose whichever setups best fit your style. Please keep in mind that these are trading ideas only. I also urge you to use stop losses in order to mitigate your downside risk–I prefer a trailing 7-8% stop loss.
I hope you find these ideas helpful.
Tough to trade this market; I have to work all day behind the biggest firewall you can ever see; the flash crash has scared me off of stop losses. Still, I need to do some work.
Thanks for the ideas, Chess!
I’m convinced (at this point, at least) to treat any bounce as a day-trade opportunity only. (MACD, Stoch’s, TRIX and other oscillator signals are very clearly pointing south)
In addition to your suggestions, I’m also watching IGTE, CNTF, TSN, AMAT, PALL, SMOD, SURG for quick trades on breaks if market moves dramatically north…
Your COCO sell looks better every day.
scalp-out BIDU +1,00;TSN +0.35; SMOD + 0.11; AMAT +0.17
back in cash!
out TLT [email protected] I hate gaps!
Thx for the tip on BIDU!
Raised my stop on remaining 200 TLT to 104.50: will settle for 4.5% or better on the trade… G’day, sir!