Momentum Trader Report: 05/18/10

18 May

Posted by Momentum-Trader as Momentum-Trader Report

The NASDAQ did not fill the gap highlighted in last nights post. Although I thought it was going to b e a bullish day, it in fact was a down day.

I bought 2 triggers near the open. They didn’t move much, and I ended up getting stopped out for losses in these.

This really isn’t the market to be buying breakouts on daily charts. It’ reminding me a lot of 2008, which is some frustrating trading. Sure, there will be a nice up day coming, but lots of false breakouts like today will also occur. I feel hesitant to short here, but that’s exatl how I felt in 2008, as the market continued lower and lower and lower. I miss the rally days. Those may be months away.

For now, I think I am going to switch back to day trading off of the 5 minute charts. ETF’s like the 3X ETF’s and VXX can move quite well, especially on days like today. See my lesson on how I trade these. If so, I will probably be sharing those trades in these posts.

Trade Ideas for 05/19/10:

Although I was stopped out, today’s triggers could be worth watching if the market bounces. I am removing a couple of stocks from the Watchlist, and adding just one. Positions smaller; stops tighter.