So, today the Dow closed up 379 points, and the S&P closed above the resistance at 716. This is a good sign for a bear market rally. Tomorrow should be interesting! From the chatter I have been hearing online, it seems to me that there is talk that the market will gap up tomorrow after showing such good relative strength into the close today.
Day trades today for me were uneventful. When you are limited to only trading one position at a time with 100 shares and a risk limit of 50 bucks, its tough to make any real profits. Think about it this way... yes, you can make a point or two in a day but its tough to do that because you are so limited on risk. If a trade goes against you and you are right about the trend, you might get squeezed out even though you know you are right just because you have the idea in the back of your mind that you don't want to hit your risk of $50. (These are the parameters setup for me with my current day trading account with my boss... no more details can be revealed!!!)
Anyway, my long term swing trades look good. I talked to some people in the multiple chatrooms available on Daytradingradio.com and realized that my original stops I had set were too little. So after reviewing and revising, I moved them back, and I am glad I did. If I didn't, I would have taken an unnecessary hit on my personal trading account. Anyway, Ebay is showing great strength and now that the market is popping, ebay is shooting up fast. Im not in the money yet, but another day like today and I will be!
PCX, my other swing trade that I'm long on is ok. Stochastics are embeded on the oversold side but they turned over again. Thats a good sign. On top of that, PCX has been holding above the $3.00 which is good. We'll see if it hits my stop.
Also, today, I checked out LDK (a stock I've been watching for a long time now since I know of someone through my father who aided in the developement of this company). Anyway, LDK is reporting earnings tommorow and the daily chart is set up nicely for a gap up. Stochastics are way oversold and starting to cross over. Because earnings are coming out, I didn't want to take a big position, so I took 25 shares at $4.71 (closing price of the day). I am looking to take a quick profit on this one tommorow if I can. What I am really looking for is a gap up. If it gaps up I plan to take profits immediatly even if I sell premarket.
Anyway, things are starting to look good! Can't wait to see things starting to grind their way back up. Also, as a side note, my prediction is that since we broke through that resistance today, I feel that the S&P will grind up to around 780 or maybe even 800, and then we'll see it fall apart again.
That's all for now!
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