Updating Stop Orders Ahead Of All The Economic News

May 27th, 2009

Good morning all! First, here is the Trading Video from last night as well as the Member’s Only Portfolio Video in case you missed them. It’s still early here, but pre-market futures are trading flat again – mainly as most people are waiting for the housing data to come out at 10am. Regardless of whether its good or bad, the expectations in the numbers are what is going to be most important.

 

As I looked through a bunch of charts last night, I honestly couldn’t help to see that there was roughly a 70/30 split between great looking shorts and good looking longs. Some stocks are clearly still WAY over-bought, while others have had a meaningful correction to make them look more and more attractive. As I mentioned to Members, I am fairly positive that by the end of this week or very early next week I will be adding some of the better LONG positions to our portfolio. This would also be a great chance for new people to enter in here. As it stands now however, all the short term indicators are showing more bets on more downside here – so that’s where we will stay positioned for now. We have updated and tighted up most if not all of our stops on our short positions to lock in very good – not great – gains.

 

Below are two very cool looking charts I found and wanted to share. The first is FCL. It’s had a very clean breakout of the consolidation around $15 back in early May. Since however, it’s hit a major resistance line around $30. I see a fall back to $20 where support will be stronger.

 

fcl

 

The next one is HOC. This stock has followed this HUGE downward trendline for the better part of 2 years! Talk about trading the trend here. This has to make at least one more Higher Low if it every wants to break above the trendline in black. Interesting huh?

 

hoc

 

Okay, and finally the updated S&P 500 intra-day support and resistance number for you all. I will be watching the 921 level like a hawk today for a reversal target and you should too. These levels are very strong and I would use them to your advantage for entering you trades.

 

spx6

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