A very very nice day for bulls !
As predicted last night, 1750 is the key level for NASDAQ !
And today the market just fluctuates around the key level 1750. But finally, the bulls win, because it stands above 1750 at the close. More important, it closed above the year line with about 10 points gain !
Very nice.
In addition, VRTU has a small run up today with about 5% gain. Once breakout 8.50, it should shoot up to 10 very quickly. The initial call of VRTU is here. Click the link for the initial chart set-up.
NASDAQ's current key level
What a nice day ! What a nice bouncing back, as predicted last night. That's the power of chart reading !
NASDAQ's current key level is about 1750. Please refer the charts below.
If the bulls can hold 1750 well, then the first target is the yellow line, about 1793. Yesterday I also gave a bouncing target as shown in the chart! The chart's link is here. Please click the link for previous charts.
On the other hand, if 1750 is successfully broken down by bears, I will expect the market drop to 1725 area, at least.
So, watch 1750 very closely, then we will know where is the market heading to !
As mentioned before, this battle is over the year line between bulls and bears. The bears have tried 5 weeks so far to push the market below the year line. To date, the market is still above the
year line, which is about 1745. I am afraid that bears may lose the battle for now, at least for this round of battle. When the bear's trap is formed, that's the end of this battle.
NASDAQ's current key level is about 1750. Please refer the charts below.
If the bulls can hold 1750 well, then the first target is the yellow line, about 1793. Yesterday I also gave a bouncing target as shown in the chart! The chart's link is here. Please click the link for previous charts.
On the other hand, if 1750 is successfully broken down by bears, I will expect the market drop to 1725 area, at least.
So, watch 1750 very closely, then we will know where is the market heading to !
As mentioned before, this battle is over the year line between bulls and bears. The bears have tried 5 weeks so far to push the market below the year line. To date, the market is still above the
year line, which is about 1745. I am afraid that bears may lose the battle for now, at least for this round of battle. When the bear's trap is formed, that's the end of this battle.
Some technical analysis tips
Some technical analysis tips have been added recently. Please refer to the side bar columns or click the link here for details.
The ideal situation is to know the big picture of the next day's price movement, if not longer, just based on the historic chart patterns. That's why I keep reading the chart every day and try to understand it better. Some misunderstandings will, of course, be corrected and improved as the time passes.
Reading the chart is very very fun since it tells you the battles between the bulls and the bears all the time. it is just like watching a great movie on the war !!
Another thing I am learning now is to plan the trade every night ahead of the day, then trade the plan accordingly over the day !! Stay away from the market during the trading period when the trading plan is carried out! Finally, evaluate each trading plan and learn from the plans.
The ideal situation is to know the big picture of the next day's price movement, if not longer, just based on the historic chart patterns. That's why I keep reading the chart every day and try to understand it better. Some misunderstandings will, of course, be corrected and improved as the time passes.
Reading the chart is very very fun since it tells you the battles between the bulls and the bears all the time. it is just like watching a great movie on the war !!
Another thing I am learning now is to plan the trade every night ahead of the day, then trade the plan accordingly over the day !! Stay away from the market during the trading period when the trading plan is carried out! Finally, evaluate each trading plan and learn from the plans.
A possible bounce back is expected
A possible bounce back is expected ! Very possible. Please refer to the chart below.
Once the breakout is real, the NASDAQ index target is to fill the gap, at least.
If the breakout fail, then NASDAQ will easily hit 1700. But, I don't expect this will happen very soon. At least, it is unlikely before a nice bouncing back.
QID will head to 33 once it can not break out 35.
As mentioned last night, the current game is the battle over the year line. Keep watching this line because it will tell us who can win the game, bears? or the bulls?
Once the breakout is real, the NASDAQ index target is to fill the gap, at least.
If the breakout fail, then NASDAQ will easily hit 1700. But, I don't expect this will happen very soon. At least, it is unlikely before a nice bouncing back.
QID will head to 33 once it can not break out 35.
As mentioned last night, the current game is the battle over the year line. Keep watching this line because it will tell us who can win the game, bears? or the bulls?
80-20 and 50-50 rules
80-20 and 50-50 rules, that's my personal portfolio management secrets.
80-20 means always leave 20% of your account value for hedging
50-50 means for each planned swing trade, always allocate 50% to buy at the support price and sell at the resistance price so that the cost of the other 50% position could drop to zero. Then the position becomes risk free finally.
Why this method works very well? Because the nature of the market is the fluctuation.
80-20 means always leave 20% of your account value for hedging
50-50 means for each planned swing trade, always allocate 50% to buy at the support price and sell at the resistance price so that the cost of the other 50% position could drop to zero. Then the position becomes risk free finally.
Why this method works very well? Because the nature of the market is the fluctuation.
The chart already told us where is today's low ?
The chart already told us where is today's low ? Isn't it ? See the chart below: Today's NASDAQ's low 1745.38, and the year line value for today is 1745.34. See, it is exactly predictable !!!! That's the beauty of chart reading. That's why I always read the chart all the time !
This market correction is no surprise at all ! On June 12, 2009, I pointed out the market top of 1879.92. Here is the old post to review. I also quote some below:
This market correction is no surprise at all ! On June 12, 2009, I pointed out the market top of 1879.92. Here is the old post to review. I also quote some below:"As mentioned last niht, the magic green line has kept the bulls under 4 days, today will be the 5th day.Euro hitted a high, then a big down last night and now is about 1.39.Oil is around 70. Gold ~ 939.Shang Hai index down ~1.9%, and all European stock markets are down now.Fortunately, we forcasted this morning's gap down correctly. Hope you have taken some profits yesterday, or set up some short positions yesterday.Based on the moving pattern of QID this morning, I feel that yesterday 's 1,879.92 of NASDAQ may be a top/high for some time."
So far, 1879.92 has been a top for almost a Month! There is no magic for such predictions ! Again, it's the chart reading ! The chart already told us the story. To be specific, I have mentioned the magic green line several times ...
What the market doing now actually is quite simple: trying to retest the year line of NASDAQ and see if the breakout of the year line, about 5 weeks ago, is real ? So, the story should be quite simple in the next few weeks...
What a nice bearish day, as expected
What a nice bearish day, as expected.
It is a very easy day to trade today, as expected. See below the quotes from yesterday:
" But if NASDAQ can not breakout 1800, then a retest of 1770 is possible. In that case, I expect the market will break down 1770, and head to 1750 area, at least."
Once NASDAQ breaks down 1770, it surely will head to 1750 area, at least. Today's close is 1,746.17, nearly 5 points below 1750.
That's the power of chart reading ! it can tell us where is the "sure" money as well as the short term trading opportunities.
Great day ! Really, it is !
More charts analysis later tonight.
It is a very easy day to trade today, as expected. See below the quotes from yesterday:
" But if NASDAQ can not breakout 1800, then a retest of 1770 is possible. In that case, I expect the market will break down 1770, and head to 1750 area, at least."
Once NASDAQ breaks down 1770, it surely will head to 1750 area, at least. Today's close is 1,746.17, nearly 5 points below 1750.
That's the power of chart reading ! it can tell us where is the "sure" money as well as the short term trading opportunities.
Great day ! Really, it is !
More charts analysis later tonight.
A very nice intra-day reversal today
A very nice intra-day reversal today.
I have predicted today's intra-day reversal last Thursday:
There is no magic for such predictions. Very simple, because SP&500 will touch 200MA today, and NASDAQ will touch 50MA today. Such trading opportunities are golden time to make some "sure" money.
Tomorrow, NASDAQ 1800 level is very important, once breakout, the market will close up. More important, closing above 1800 could become a signal for the end of this small market down wave and start a new up trend line. But if NASDAQ can not breakout 1800, then a retest of 1770 is possible. In that case, I expect the market will break down 1770, and head to 1750 area, at least.
As mentioned several times before, 1880 and 1750 are two key watch points now. Breaking out/down either one will lead the market to the next level in the same direction.
I have predicted today's intra-day reversal last Thursday:
Today's Market Close Prediction
July 06, 2009: UPThere is no magic for such predictions. Very simple, because SP&500 will touch 200MA today, and NASDAQ will touch 50MA today. Such trading opportunities are golden time to make some "sure" money.
Tomorrow, NASDAQ 1800 level is very important, once breakout, the market will close up. More important, closing above 1800 could become a signal for the end of this small market down wave and start a new up trend line. But if NASDAQ can not breakout 1800, then a retest of 1770 is possible. In that case, I expect the market will break down 1770, and head to 1750 area, at least.
As mentioned several times before, 1880 and 1750 are two key watch points now. Breaking out/down either one will lead the market to the next level in the same direction.
Gap up and run example -OSK
here is the 10days 5minutes chart, let's see when it can complete the climax run and learn ...
Subscribe to:
Posts (Atom)
