The market had its first real down day of the year, with the indexes closing down around -1.5%, and it looks like lower prices may be ahead.

Personally, I would like to see the market continue to move lower for the next day or two. This should bring the McClellan Oscillator to levels which typically precede a market bottom. This chart is making me maintain a bullish stance, although I am not holding or buying anything at the moment. The next couple of days should provide a clearer picture.

Some of my recent trades did not work out. including AG which started out nicely. Recent picks have would have in fact made better shorts. Since I trade the leading stocks, it is important to listen to what these are saying, because the market will follow. For now, there is no point in trading the leaders, unless it is on the short side. But for reasons stated above, I believe that the downside may be limited.

Trade Ideas for 03/06/12:

None

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The indexes continue higher with virtually no rest, and the NASDAQ continues to climb within this tight channel. No sense in guessing when it will end, but these certainly has to be some rest soon.

Metals are starting to move, and silver stocks especially moved well. This was great for AG, a chart I posted here and a trade a entered last week.

CTCT was a recent trigger which rested today after breaking out yesterday.

I am seeing some more charts emerge which look attractive.

Trade Ideas for 02/29/12:

Good luck and good trading!

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 Not much movement in the market on Friday fro the indexes, which could be stalling out.

In my last post, I mentioned AG as a trade idea, which I am now in. This is a silver stock, and silver and gold have been perking up.

This chart of GLD shows that it has broken out of a consolidation pattern.

I was also stopped out of CXO. As a rule, I sell before earnings and accidentally held this one into earnings. I have not been posting or following the market as I should lately, and this was the result. Overall though, not a bad trade.

Gas prices in the US have been rising fast and are now near $3.70 per gallon. Whenever the national average has hit $4 in the past, the market has tanked, going back to 2008. It’s clear that gas prices want to be above $4 per gallon (and are in Calfornia), but the question is, can the US economy afford it? For the past 4 years, the answer has been “no”. I am curious to see how the market reacts as we approach $4. 

Trade Ideas for 02/27/12:

There is only one chart I like here, and that is CTCT. It recently reported strong earnings and has consolidated nicely since then. If this triggers, I will buy using 10% of my account, with a stop below the 10-Day MA.

Good luck and good trading!

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