Hi, these are just ideas not recommendations, sometimes I trade my ideas, sometimes I don’t.
Always remember, yours is the responsibility for your trades,
Good luck,
Erick



Wednesday, October 20, 2010

Yesterday Action

The 1.7% advance of the dollar yesterday may signal a shift in the direction of the market at least in the short term. The strong volume of traders buying dollars (the highest in three months) could be the beginning of money going out of stocks and into cash.


Long term the market looks strong with the Dow Jones trading cleanly above the 10 and 30 weeks moving average, however a one or two weeks correction can take you out of your hard earned profits. Since I trade with a short to medium term in mind, I sold all my positions yesterday with a small profit. I am convinced that making money in the stock market is a long race with the preservation of capital being the most important consideration.

Now it is probably a time to reassess, The Dow lost 1.48% yesterday the SP and the Nasdaq dropped in excess of 1.5% and the volume was significant. I will be waiting for a signal of the markets to start trading again. A simple bullish signal would be for the markets to overcome Monday’s high which is also the same as last week high level.

Start looking for medium term shorts if the market closes below yesterday close or below last week low.


For shorts you may consider looking at AKAM and JNPR.

No comments:

Post a Comment

BlogCatalog

Investing Blogs - BlogCatalog Blog Directory

Followers

About Me

From the Dominican Republic - Swing Trader Speculator - Civil Engineer/Project Manager - sternloinaz@gmail.com