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Short term trades in the stock market •$$$$$•

Madrus Rose

Madrus Rose

post 69
Veteran
RSI is just a really popular trading tool among traders based on a formula more easily explained here , that measures the momentum in stocks & when they get overbought or oversold . If u haven't ever used it before start doing so & then you can add other
indicators as well like the CCI & MACD (can google those too ).

RSI
http://en.wikipedia.org/wiki/Relative_Strength_Index


* beats the hell out of flying blind & beauty is u can see thru these indicators at a glance what all the pros are looking at too . Thru more technical charting analysis there can be more refined "support Levels" determined & Resistance levels . There's a saying in trading which is BAS SAR (or SAR BAS) which stands for " Buy at Support and Sell at Resistance"... and these indicators help tell you where those points are .
http://www.google.com/search?q=buy+...ie=UTF-8&oe=UTF-8&sourceid=ie7&rlz=1I7GGLL_en

just use this chart link for looking up stocks ,
its all set to go for ya & free ..u can set for daily or weekly etc
http://stockcharts.com/h-sc/ui?s=$COMPQ&p=D&b=5&g=0&id=p37712746800
 
zenoonez

zenoonez

Active member
Veteran
Nice man, thanks. I have been flying blind for a while and did okay I guess, averaged 7-9% weekly but this is a whole new ballgame now. I gotta learn how to use these tools :) maybe I can get a better percentage.
 
Madrus Rose

Madrus Rose

post 69
Veteran
well to be totally involved one has to be able to think "Short" sometimes ...if you only play "long" then you have to really be aware of those support levels . Then there's always what we call "sector rotation" when market has been trending up & they look for other sectors to buy into & run up , which have been lagging . They're always looking to make a buck , so rinse wash & repeat ..run something else up;)

catching the trend or the trend is your friend but takes alot of study & awareness of whats going on in all the different sectors . Knowing the market whole as a composite of many many sectors is really an important thing , & watch them daily .

Here's one of the important ones to watch is good old Goldman Sachs
over in the financial sector, they're into everything!!...

see what Goldman (GS) does here off this "test" of the 50day simple moving
average (the blue line ) here @$165 noticed it bounced there b4 off the 50ma , but better spot would be to look down to $155 as support which is the aug, sept , oct highs too. Thats very "long-term" strong support ...see the line u could draw there at $155? ? Patience is a key ...
http://stockcharts.com/h-sc/ui?s=GS&p=D&b=5&g=0&id=p84396545914

57694092.png
 
zenoonez

zenoonez

Active member
Veteran
Very interesting. So you think we should see a bounce because it is approaching being "under-bought" @ or around 40 RSI and to boot it is approaching its 50 day moving average? The chart seems to show that it is still a very popular stock as it seems to stick above 50 on the RSI for most of the time. That seems to indicate people are playing it when it approaches being balanced and then ride it up to being over-bought and dump it. If it is currently under-bought we could see it rise again but we could also see it stall if the market continues its downward slide. I don't think we are even close to the level of correction that I expect by the end of this but at the same time, I don't expect GS to stay low for very long. I guess I need to start thinking like a pro trader rather than rationalizing my predictions with my own rationale.
 
Madrus Rose

Madrus Rose

post 69
Veteran
zenoonez said:
Very interesting. So you think we should see a bounce because it is approaching being "under-bought" @ or around 40 RSI and to boot it is approaching its 50 day moving average? The chart seems to show that it is still a very popular stock as it seems to stick above 50 on the RSI for most of the time. That seems to indicate people are playing it when it approaches being balanced and then ride it up to being over-bought and dump it. If it is currently under-bought we could see it rise again but we could also see it stall if the market continues its downward slide. I don't think we are even close to the level of correction that I expect by the end of this but at the same time, I don't expect GS to stay low for very long. I guess I need to start thinking like a pro trader rather than rationalizing my predictions with my own rationale.
Click to expand...


see how these charts apple & the compx bounced off that touch on the 50RSI ?
one could have bought in there or if short covered there ...and now another short approaching ?

Very low volumes ...

aapl.png


And the $compx

68904957.png
 
Madrus Rose

Madrus Rose

post 69
Veteran
SpasticGramps said:
Dow getting close to breaking 12,000 today. Anyone think we'll see 14K this year?
Click to expand...

better deal with reaching 13k gramps 1rst ....

right now going to have a time here with 12k , this is where the rubber meets the road at a strategic pivot ...very overbought & will pull back here to profitaking . Actually hit
intra day high of 12019 closed @ 11089 up only +4pts from the open ..so it got sold a bit.

induy.png
 
T

Tela

Member
if january is an indicator for how well the market will do this year, there is going to be a lot of money made.
 
SpasticGramps

SpasticGramps

Don't Drone Me, Bro!
ICMag Donor
Veteran
Egypt and the middles east mess seems to be weighing on the markets today.

Unemployment figure was terrible yesterday too. Anyone think we are started stagflation in earnest yet?
 
TNTBudSticker

TNTBudSticker

Active member
Veteran
Seen C hasn't be sold off until march.I think it's a good stock to make money or having it all pay for itself trading with limit orders and having loads of stock for cheap on the dollar.

That portfolio I posted is actually up at 314.23 for it's high today by having those 2 Shorts when the market is taking a hit at -159.00

I added a position FGP for it's dividends.



Gold did indeed go below $1320 and a nice bounce today.

I was in MMG trading it at $1.00 and selling it above $1.10

Going to be hard but when gold spikes..MMG just may market-perform along side with gold.If not chunk the piece of crap.But thanks for the party !

Read an article that says that DOW at 12,000 could \ will be a selling point for traders.

I'm seeing a bounce.... lol ..... but then it's a wait and see.Some graph is telling me a bounce.
Ye 'a 'bounce
 
M

Mountain

As I thought AAPL took a dump today on vol after setting up near it's recent highs. Still feel what happened a few days ago was the start of a correction, who knows how long it'll last, and not surprised the market made a small run back to the high's. Institutions selling shares like crazy today. Was in CCME before the pop and locked in most of my gains. Getting a bit too volatile now for my tastes though. Still think long term it has great potential but needs to settle down a bit for another entry but don't know if it will any time soon...lol...huge short interest on a highly rated company getting all kinds of coverage the past few weeks. Ridiculously low PE and guessing it'll make a nice run in the near future...depending on general market conditions of course.
 
Madrus Rose

Madrus Rose

post 69
Veteran
The $INDU was really overdue & almost never , when a chart gets this high a RSI reading do you not see a pull back & profitaking kick in . At "12K" almost every fundmanager thats been riding this 25% gain since august/sept is going to be ready to seel at this "Nice Round Pivot" number .

They're all looking at the same charts is why ..easy to see 12k as a major resistance point here after one major 5mo straight bull run . Trading above the 50ma the whole time the bulls were in full control the enitire ride .

But up here the air was getting mighty thin ....no new drivers to take it higher since the holiday spending is over, americans have shot their wad ...now patience is a key & wait for tests of lower supports , to rebuy in at lower levels .


indu2.png


compx2.png
 
Madrus Rose

Madrus Rose

post 69
Veteran
And the $SPX (S&P) atnice even "1300"...these "Nice Round Numbers" are golden shorting opps

Come around only rarely when they do are so totally obvious ...when technical overbought indicators are there on all indices & both the INDU , COMPX & $SPX are all in kind of a harmonic convergence ready to draw back .

If u only did 4-8 trades a year waiting for these kinds of set ups , you almost would never lose ....patience is the key & watch the charts .

good support at 1250 (50ma), next @ 1220 & 10% correction would be down @ 1180 where u see the bounce up the 1rst of dec off the 50ma then & congestion area

spxr.png
 
TNTBudSticker

TNTBudSticker

Active member
Veteran
Yay ! Ze'bounce! :jump:

I use the 25Ma-100ma instead of the 50ma-200ma..That's just me.I also use the RSI-Relative strength index for those Small Cap picks.I use the Full Stochastics also.


MMG (mining) is like "sell the news,I'm going up!" So with Gold,silver going down it's a push and pull stock.Up it went today.

I'm paper-trading MMG with 36,000 shares at 1.06 and now at 1.13.
Going to sell 18,000 shares at limit $1.13 in the morning.And a stop limit at $1.11 for the rest.
I usually don't advocate penny stocks and disdain them because other stocks are better,stable and easier to invest.This is just paper-trading and learning if I made a mistake somewhere and why.

I'm up a darn 331 points today..Yup it was ze'bounce!
Wish I can Short gold in the portfolio but now that would be getting too greedy wouldn't it? :jump:

The All-Worst stock I thought would recover because it was paying dividends.It was a housing,loan bank stock and it was the wrong time to get in.It didn't wean off dividends and reduced it or at least I would have sold it off.Ran it all the way from $7.25 to .02 cents

The stock is talking to me.."This is my .02 cents what I think about you when you didn't sell say at $6.75 and who's the idiot now,running it to .02 ?!" :moon: :laughing:
 
M

Mountain

Man CCME has been on a crazy ride. Forbes recently listed it as the #1 small-to-medium sized company in China with the greatest potential for growth and others say it is a total fraud...LOL. Anyway too much damage technically to even think about it at this point.

Action is really in the big caps lately like CAT, HAL, AA, DE, etc. AA is breaking out of an important year old base. Some saying it might be a takeover target by companies like RIO later this year as they, and a few others, are weak in aluminum in their portfolio. AA is in the process of starting up mothballed facilities and a general shift in steel to Al underway in things like autos etc. China is cutting back on Al With copper way up aluminum replacing it in some applications.

Anyway...today making up some damage from Friday but volume already tapering off. With all the major indices at MAJOR resistance levels should be interesting.

LULU making a nice move today so far but go go Alcoa :)

I use the 25Ma-100ma instead of the 50ma-200ma..That's just me
Click to expand...
Why? I stick with 20/50/200 simple for support/resistance and use the 10 for very short term stuff and bullish/bearish crossovers.
 
M

Mountain

For those enamored with AAPL the reason I see it as a bellwether for the market is if you compare an AAPL chart to that of the Nasdaq Composite (COMP) they are almost identical. Right now as AAPL goes so goes the Nasdaq and vice versa.
 
TNTBudSticker

TNTBudSticker

Active member
Veteran
25Ma-100ma is just a shorter duration between stock moves.. the 200ma is a long time and by that time it passes that mark,one may have been in it at the 100ma mark anyways.

Glad aluminum -AA is turning around because I added CENX back in 12/23/09 at $15.87 and AA at $12.93 and still down .40 in CENX but up ahead 5 ponies in AA.

One of the things I do when I get a stock and it goes down...I'll buy another stock in the same sector a few months later,this is what I did with Aluminum stocks AA and CENX instead of buying down when stocks get cheaper if the market takes a hit.Like buying CENX all the way down till one runs out of cash and waits.

CENX I'm letting go and keep AA... CENX too scary with minus earnings still.It may improve but I rather relax and Run with AA.

I'm looking at WEN-Wendy...Seems something is'a happening with this boy.I'll keep watching it
 
M

Mountain

Those are unconventional MA's you're using. I follow stocks that have strong institutional support and are highly rated for things like Relative Strength, Return On Equity, low debt levels, sector leaders, strong fundamentals, etc. but rely on technical analysis for entries/exits. For these stocks usually the 20 and 50's are important as that's what institutions follow. Virtually nothing is anywhere near their 200 right now...lol.

While WEN's chart definitely has turned around the overall rating for the stock sucks and CENX is not very good either. I stay away from the dogs. Also with something like Wendy's considering the competition and it's such a huge company not much chance of significant movement in the stock because the company can't really do much in regards to expansion, new products, increasing market share, etc.

I've been a fan of Investors Business Daily for years and generally follow their information on stocks and what's happening in the general market. Their website is pretty good and their stock checkup feature gives a quick snapshot of the underlying fundamentals.
 
Madrus Rose

Madrus Rose

post 69
Veteran
here's CENX corp using the 25/100ma instead of the 50/200ma & threw in the Bollinger Bands as well ...
it bounced there off the 100ma & simultaneous touch on the oversold 30RSI @ $14 .

Now the 25ma (blue line) is offering resisistance ...was very oversold near
term @$14 as the CCI showed underneath which usually leads & reflects
the RSI by a little .

CENX was downgraded jan 14th & took its hit here's one article looking
ahead in the aluminum sector
Aluminum Industry Faces Lofty Expectations in 2011
http://finance.yahoo.com/news/Aluminum-Industry-Faces-Lofty-iw-1619127776.html?x=0&.v=1

cenx.png
 
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