Trade Plan for Wednesday
Posted on June 22, 2010 by trader21 in GLOBAL CHART ANALYSIS
I here all the talking head speaking of poor fundamentals in the economy when last week they were all talking about how great everything was. They are nothing but re-actionists and we here are pro-activists when it comes to the moves in the market. These facts were all out there yesterday and last week and the week before. We are pulling back because we hit the top of the trading range where profits are taken and shorts initiate their new positions. This is what we have been warning about for the past few days and not something new today like it appears to be to them. We also have not had a day of profit taking in nearly 2 weeks! The market just can’t go up forever and it needs to pause especially at resistance levels like we pointed out. It’s as simple as that. Now how far does this selloff go? We broke out of downtrend last week and will probably rest above that level. If we do see support on the top of that range then we should see a huge bounce off that point. There is a chance we break back below that and head back towards the old lows but we aren’t too worried about that yet.
The Euro is reversing like we said it would and it still has a ways to go. I believe it has the potential to pull our market down with it but then we may shake loose of that connection and head higher going into quarter end.
This may take a couple days to pan out but as of now we will be looking to get long this next bounce.
Hang tight
Even though we saw aggressive selling VRX did get moving again. Looks like it was up 8.46% for the day on our 2 open positions. We are now up 47% and 57% on these 2 trades. Very nice
We will have more to report tomorrow after the USA world cup game. We will also be profiling 100’s of our winning trades from the past year to show what we saw and why it was a good trade setup.
Thanks,
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