{+++}
A transformer just exploded in front of my house, so I am on a wireless card and I have zero power. I’m starting to feel like Burgess Meredith in that apocalyptic Twilight Zone episode.
We’ll be back to video soon as soon as the summer doldrums near an end. I will also be popping out some instructional videos during the week that will discuses specific chart reads and set ups. This will include pattern recognition for:
1- bull and bear flags
2- bull and bear wedges
3- how to really take advantage of the power of uptrend and downtrend lines
4-reading MACD
If you have any suggestions or if there is anything that you would like me to devote so time to, please send me an email and I will do my best to incorporate it.
This market is insane. This is what the S&P has done since June 1.
*** From June 4 to June 19 we rally 95 points.
*** From June 20 to June 25 we fall 55 points
*** From June 28 to July 3 we rally back up 65 handles
*** From July 3 to July 12 we drop 50 S&P points
*** From July 13 to now we pop 62 S&P points
It’s a great trading market assuming you go home flat everyday, but if you are swinging positions it can temporarily leave your P&L shaken and stirred. It hasn’t been an easy tape and we are still subject to all the European headlines on a daily basis.
We saw the market rip on Thursday on what is now referred to as the Draghi rally. It continued on Friday. We are overbought now, just like we were oversold on Wednesday, so this “rip and dip” scenario will probably continue for a while. So buying the dip and selling the rip still seems to be the way to go, although it is easier said than done sometimes.
I did an update on the coal sector on the blog a few hours ago, so you can click the story later if you like.
As you guys know, Monday has been brutal for the tape over the last couple of months and I don’t know yet if history will repeat, but stay cautious up here as we find ourselves in the nosebleed seats again.
I have added 4 new longs and a short tonight. Please see the P&L for entries and stops on these new additions.
Long: ARUN, DPZ, JOY, THLD
Short: TDJ
See you all in the chat room in the morning. Have a great night.