Day Trading Post #69

The market ended up 47 points on the DOW and 4.54 points on the SP500 after shaking a bit throughout the day. We are in a bull market, so it's time to buy! Stocks look good, companies earnings are coming out and performing well, and the market is reacting! The charts are very bullish, and being that we closed above 1093 on the SP500 cash, we are set to run up to around 1250 or so. The chart's don't lie, and just as we saw the market flush down last year at this time, there are no areas of major resistance to keep us from pushing up. Sure we may see some minor pull backs, but I feel the overall trend is set and we are going long!

Today, I took SYMC off the table. It hit my target yesterday and started to pull back today. I gave back about 20 cents, but I'm not too concerned with that. What I like more so about the trade is that it played out the way I had predicted. We filled the gap from last August and that's all there was too it. Other than that, my other positions maintained their current standings from yesterday or pushed up higher. The only losers I have on the table include LDK and AET. AET is very oversold, the SMI look good for a move up, and once the news quiets down regarding the health care bill, we should see some moves up in the health care sector. On the other hand, LDK is slowly falling down further, and if it breaks through this major area of support in the range of $7.60-$8.00, I am out of it. No point to tie up capital and let losers get bigger.

As for some trades I took today, I found some cheap stocks that I liked the setups on. I have a lot of capital (for my account) in the open market right now, so I was looking at some of the cheaper stocks to find some setups and came across MPG and CVM. The charts look great on both where they have both created a bullish flag like pattern, SMI's have crossed to the upside, and they are breaking through areas of resistance. I like how they are set up (charts posted below):

Along with these trades, I also purchased some OTC stocks which are very speculative plays that I wouldn't recommend to anyone. If anything, I would describe these trades as being experimental, and I only put up a couple hundred bucks which I am willing to take a loss on to see how these play out. I guess you could call this a little bit of foward testing (as opposed to back testing since I took the plunge and got into the positions). Anyway, I am in EDVP from about a week ago, and then I took BEHL today as well. EDVP and BEHL look decent on the daily charts for a bottoming pattern and have a tremendous upside potential. We will see how these play out, and again as I said, these are highly speculative and I wouldn't recommend them to anyone. They are high risk trades, but with high risk comes high reward.


To finish off the day, here is a screen shot of the SP500 cash where you can see that we have no significant resistance above us. As I said earlier, it's time to buy! The only problem I am running into right now is that I don't enough money to buy everything I want to hold on to right now!