Posts Tagged ‘ June ’

Why I am long $SPY $QQQ $IWM going into tomorrow.

I have been eyeing to go long S&P 500 $SPY, NASADQ $QQQ and Russell 2000 $IWM  since June 1, 2012 when we had the false breakdown on volume which had no followthru the next day.

$SPY $QQQ $IWM all trended up till June 19, 2012 before we had that big down move which was called out in my post ‘ WHY I am long $TZA’. We had a sever down move on June 21, 2012 and I was watching how the market was gonna react on June 22, 2012. Once again we had very little follow thru to the downside.

Between June 26th and Jul 3rd we once again trended up nicely, I blogged about ‘ Is it time to buy the DIPS’ on July 4, 2012 before we had a down move today on July 10, 2012.

AT 3:50pm I tweeted out to go long  $SPY and also mentioned in  free online live trading room

Follow me on twitter @dchsn6 for my tweets.

My Thesis why I mentioned long $SPY $QQQ $IWM, as traders we look for opportunities which favors the reward to risk.

As can be seen from the chart ,

1.  Tested trendline B which is the upward slopping trendline.

2. Tested Trendline A which is the downward sloping trendline.

3. 134 on $SPY is also the region between 38% and 50% retracements on fibonaccis.

4. We did the gap fill created on June 29th gap up.

5. We have the volume accumulation signs in $SPY

6. 20EMA and 50SMA as support on daily.

The above are the 6 points why I mentioned to go long $SPY $QQQ $IWM.

My thesis is nullified if $SPY goes below 130. But once again as a trader we look for risk-reward with 4point downside, I am looking for 1st tgt atleast to 142 on $SPY.

I am also offering a 6 HOUR POWER DAY TRADING COURSE for new and experienced traders.

My previous Market Calls

dchsn6

www.dchsn6.com

2012
07/10
CATEGORY
$SPY $QQQ $TNA $TZA $ES_F $TNA $TZA analysis
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2 comments

IS IT TIME TO BUY THE DIPS?

At this point of time I would still be a bit cautioned about buying the dips. However, all the indications from the S&P 500 $SPY and NASDAQ $QQQ chart it looks rather constructive.

Image

1. At point A we had a failed breakdown of 131.20 level which was clear level of support.  Failed breakdowns lead to big snap backs.

2. At point B, we can see that market gapped down on June 27th and June 28th and on both days the bulls took control and bought it right back up.

3. At point C, the utmost important resistance of 136 was breached rather convicingly on high volume on June 29th. Now, some traders may argue that on July 2nd and July 3rd the follow thru days was on lighter volume. But they shouldn’t forget that we had July 4th coming up, hence trading a few days before is usually light.

for $SPY we still have 138.40 resistance coming up. If your looking to intitiate long positions, I would recommend you to wait for either a pullback to 134 which is the gapfill or maybe look for a consolidation under 138.40. At this point of time, markets look a bit extended and a rest or a pullback should be considered as an opportunity to get in long.

At these levels on $SPY and $QQQ I favor the bullscamp, $SPY below 131.20  I will have to revaluate. But as a trader, for intraday trading I am willing to switch to bear camp on a dime.

I am also offering a 6 HOUR POWER DAY TRADING COURSE for new and experienced traders.

My previous Market Calls

If you would like to see how I navigate through these markets intraday email: dchsn6@gmail.com for free trading room request.

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dchsn6

2012
07/04
CATEGORY
$SPY $QQQ $TNA $TZA $ES_F $TNA $TZA analysis
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5 comments