The market gapped down on Friday morning, but those who didn’t panic were rewarded as the market recovered in the afternoon. The NASDAQ has confirmed a close above its 50-Day SMA, a positive sign for the market.

The S&P 500 sits right at the 50-Day. Let’s hope it follows the lead of the NASDAQ, although some rest above there would be a good thing.

I had 2 triggers on Friday. TSTC was the best mover, and still looks good.

ACXM also triggered, but didn’t move much. It could be forming a double top as well. My stop is tight in this one.

There was also some nice movement in recent triggers.
CSE had a fantastic day Friday. I sold 2/3 on Friday, still holding the remaining 1/3.



JDAS did not move higher Friday, but may have found some support. If so, it could try another run higher.

In looking over charts this weekend, I was trying to identify some longer term trends. There is some positive action in UUP and TBT, which includes a potential golden cross of the 50 and 200-Day SMA’. If that occurs, then I will buy pullbacks in these and hold them for longer term trades.


The market looked bearish a week ago, and now looks pretty bullish here, although a rest is certainly due. But with the choppiness, it helps to be open minded in this market. If things start looking bearish again, I like EDZ as a possible trade, with an obvious stop below the 50-Day SMA.

Only considering the charts that look the best to me. I passed on a lot of ones I felt were mediocre. I don’t plan to hold anything too long until we get a confirmed rally on higher volume.




Good luck and good trading!
4 Responses
Jeremy
February 21st, 2010 at 10:44 pm
1Hi, I have been following your post for sometime. It’s great and thanks for sharing lots of ideas. I wonder if you can share :
what would be your stop loss policy? any certain threshold?
what is your trading strategy? growth stocks, momentum, etc? thanks again
Momentum-Trader
February 22nd, 2010 at 6:39 am
2Jeremy, thanks for visiting. I used to struggle with stops a lot. I like to use tight stops, and was using tiny stops like 1% and 2%, but found myself getting stopped out of lots of big winners. Last year, I started using 2.5% stops, and that seemed to keep me in some runners. However, I no longer use these arbitrary stops. I started using the previous days low as my stop, and that helped a lot. Now however, I am using the underlying 15-Day SMA as my stop. This is the same strategy I use in the ‘How I day trade the 3X ETF’s’ lesson, but I am using the daily chart instead of the 5-min.
http://www.momentum-trader.com/index.php/trading-lesson-how-i-day-trade-3x-etfs/
I haven’t gotten stopped out of a big mover since using this stop strategy. I just trail my stop each day until I sell. Lately, I’ve been trying to sell 2/3 after the stock makes a nice move, then move my stop to breakeven for the remaining shares and see if I can catch a runner.
Hope this helps.
Momentum Trader Report: 03/21/10 by momentum-trader.com
March 21st, 2010 at 7:20 pm
3[…] this post on 2/21/10, I’ve been watching UUP closely and looking for a buy point. It has pulled back to the 50-Day […]
Momentum Trader Report: 03/21/10 by momentum-trader.com
March 21st, 2010 at 7:20 pm
4[…] this post on 2/21/10, I’ve been watching UUP closely and looking for a buy point. It has pulled back to the 50-Day […]
RSS feed for comments on this post · TrackBack URI
Leave a reply
Archives
Links
Bookmark & Share
By: Twitter Buttons