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Monday, November 9, 2009

Day Trading Post #77

Well, today got me a bit bullish again and I took some long positions. I am only planning on holding for a short period of time. I bought SPG, UAUA, and SKS. Charts with my notes are below:

SKS is an interesting chart. For the past 6 months you can see (from my interpretation of this chart) that we traded in an upward channel with a wide range. Short term, we have a downward channel which brings us to the lower trend line of the long term channel where you see we bounce. Along with that, the Stochastics and MACD have setup for a long. Things look good for about a point move give or take some. 


SPG is one I have been watching for a while. The stochastics and MACD have crossed to the upside and look bullish. There is the potential for it to pull back down into the falling wedge pattern present on the chart, and if that is the case I may cut my losses and wait for a better entry. Although right now it looks as if we may have caught the breakout. Overall, I took small size but will be watching it closely.

UAUA is a trade I took when looking at a bunch of different airline stocks. I honestly think that you could take a basket of airlines and hold for a few days or so with a tight stop and have some decent profits. Many airline stocks look very similar to UAUA and have the stochastics and MACD setup for a buy.



Finally, the S&P cash chart. On the daily, we look really good for a move up, but I am hesitant around the 1100 level since I got burned pretty badly the last time we hit 1100. Mid October, I should have locked in profits but got greedy and held on resulting in many winning positions rolling over and turning into losing positions. This time, I am not going to let that happen. If I see the market stalling out and showing some resistance around 1100 again, I plan to scale out / lock in profits. We will see in the next few days / weeks!



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