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



Sunday, March 31, 2013

Market Update Week April 1 –April 5, Support line for the Dow, resistance for Basic materials

The Dow continues unabated in its uptrend treading alongside a perfect 45 degree line, since Feb 1st and with a tiny correction the Dow went from 14009.79 to 14578.74 at close on March 28, for a superb 4% gain in two months.
The Dow gave again a buying signal last Thursday with a 14880 target, the support line for this week is at 14349, the index must lose 1.60% from last week close to signal an end to the uptrend, any closing price this week below 14349 is a signal to exit all Dow Longs.



I suspect this continuous uptrend of the Dow since not all the groups are trading alongside, Basic Materials had a dismal performance in the same period going from 290.09 on Feb 1st to 282.92 at last week close, shedding 7.17 points or 2.47%.
The group gave a short signal on March 25 with a 1.3% target to the downside, March 27 low could be the target so I am not shorting the group, possibly it will overcome its 50 ma halting the down move for a while. This is a weak group making it a favorite short candidate if the market starts consolidating.  The 285 level, extremely close the 50 ma is resistance for downs next week.



Positions: In the sidelines.
Good luck to all,

Thursday, March 28, 2013

Dow Jones Support March 28

Hello all,
The Dow continues ascending and today it added 0.36% making again a new 52 week high. As it keeps climbing my last target established at 14429 on February 1 was surpassed, so now it is on uncertainty territory.
Definitively is you did not enter early now is not a right time to go long on the Dow’s ETFs, it is an exercise on patience  but what I’m doing is waiting on the sidelines for a short or at least a correction on the move since I don’t have a new uptrend target.
What happened was on February 1st I got a new target but also my January 11 target was reached so I was kind of in a dilemma, so in February 5 I sold with my original target in mind, it proved wrong because the Dow Jones kept climbing without crossing the support line for that week, anyway it was a 7.3% leveraged profit in 20 trading days, I really do not believe on buy and hold.
As you can see in the chart, the angle was a near perfect 45 degree so the volatility ignited move was a no brainer. Always suspect a long move with a steep angle since it tends to correct quickly.
Support for this week is at 14278.




Sorry for not posting for a couple of months, I’ll try to make time.




Shalom,

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About Me

I am a civil engineer who likes charts, to me, speculating in the markets is both a hobby and a second profession and in my view the stock market is the most honest environment, since it is only your knowledge and preparation that matters. I live, and work in the construction industry, in the Dominican Republic. I read and answer all my mail so please feel free to write sternloinaz@gmail.com Thanks, Erick