This evenings watch list has a few new set ups and some interesting charts for the rest of the week, all of the set ups have potential, It takes a lot of research and preparation each night to become a profitable trader. Even while i stay home tonight and send in my research, i try not to ever miss a day when i am involved in the markets. Each night i receive many emails, A try to answer them most, even if its a few words of encouragement, as we all know trading today's market is one of the hardest career choices you can make. But worth the decision 10 times over. Here is a recent email that i wanted to share, because i get many that are similar. I don't claim to have all the answers, but I have experience and been to the mountain top and have fallen . But to have the courage to get back up and learn from your past separates the successful from the average.
Hi john, having a hard time in this market lately was hoping for some help.. R/S lines.. when i draw a few lines on a chart that look as if they are going to be important and indeed when the candles hit they do indeed either turn down or pop threw.. what is the best indicator to determine weather that line is going to act as support or resistance, could you mail me back.. perhaps would be a good topic for a Utube video..thanks john
Hi D...
Yes i have to agree this markets has been tough for even the pro's, What you will find and what a lot of people over look is something called market profile it when you can draw "support or resistance line " across the chart at an obvious place "2 highs or 2 lows, but you need to extend that line as far back as you can and see how it reacts with the history of the charts. you will find the best support lines will be hit way before they come into play again and these areas are the have the most history at a certain price level. There are indicators that can show you market profile, but I find if you learn the meat and potato's of the market you won't go hungry for to long, just have faith in the strongest lines that you find if they fail then that's your signal, but 7 times out of 10 you will get a move off this and you need to take profits faster then normal and if you are looking for a 1-2 then lock in 1/2 at .50 until the market starts to trend. the second big rule is and I know you heard it "The trend is your friend" try to trade the direction of the markets this is more then half the battle this is the battle.. as Sun Tzu says so perfectly
If your enemy is secure at all points, be prepared for him. If he is in superior strength, evade him. If your opponent is temperamental, seek to irritate him. Pretend to be weak, that he may grow arrogant. If he is taking his ease, give him no rest. If his forces are united, separate them. If sovereign and subject are in accord, put division between them. Attack him where he is unprepared, appear where you are not expected.
Basically fight your fight not the markets
DTRS
Watch the consolidation..that simple, set the alert and forget about it.
Nice triangle pattern here, One thing i notice is the embedded stochastics, (Embedded Stochastics occur when both the red "K" line and yellow "D" line stay over an 80 reading for 3-days in a row, this is usually a good sign of underlying strength in the stock)
UPN Like the volume and the higher low being put in, Markets seem to be putting in one last charge above S&P 800 level if it can hold UPN look great today and tomorrow
The Steel play I take pride in saying is my favorite swing trader, as a full time trader you begin to learn different stocks and how they move, Even if you take a position in a stock in a pattern you will have to have the confidence to hold thru the swings while inside the pattern. This one looks great to 25 and more.
20.65 as a trigger buy long this will take out the recent consolidation and 200 emaBelow is GE We are way over due for a bounce, Here on the monthly chart there is no real sign of support, so you have to got on guts and intuition, below i have a daily chart, I am looking to start a position in this this week. I bet the CNBS personnel are pretty upset about there options plan right about now
Above you can see the sector map for today, on the radio today www.daytradingradio.com you heard me talking about the weakness in the fins (Financials) on this map you can see in the lower left corner the Financial sector. the positive thing about this situation is the market rallied without the Fins, The market works in ways where you will see sector rotation, Tomorrow if the Fins come back into play ( my bet on the JMP entry today (in the money)) We should get a continuation and a whole different story in the markets..
GE daily chart as mentioned above ..looking for an entry , and at least scaling in tomorrow.
Every day I get asked if i am still holding F (Ford) yes i am and just maybe, just maybe we are about to see why. Today's reversal on auto sale numbers (dismal) this could all be priced in tomorrow will be a important day if we can get some follow through, I might even add to F here
Dont know much about this company or stock history, but came up on scan and wanted to pass it on. Volume, Stochastics and trend line break made it look like a great momentum play into the close .. to bad i just found it tonight.
So that's all for tonight..No show tonight but tomorrow I want to get on. Been working hard on getting the members section upgraded to a point where i can just concentrate on the members, I find a lot of people like the ustream chat app. but there is a lot of distractions , and at this point in the markets, It is best to be focused on the goal at hand. So any feedback will help in the overall decision. please email any suggestion or comment to Iornaction@yahoo.com
I am meeting with a crackerjack web designer tomorrow afternoon, The site will be totally customised , and relaunched as a major media site in the next month. I Look forward to bringing the site and station to the next level. There is plans to raise prices in the near future. Before the launch of the new site. THIS WILL NOT EFFECT CURRENT MEMBERS..You are grandfathered in forever at the original prices. So just want to clarify this before i get tons of emails about that. No change...
I will also be having a booth at the traders expo in NYC on feb 21-24 www.tradersexpo.com, and will be doing a 45 minute presentation, I hope to meet a lot of members at the show and spend some good times getting to know you. If you know you will be going to the the show let me know. I will be posting a meet and greet schedule for the weekend on the site very soon.
See everyone in the markets tomorrow
John
DayTraderRockStar
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