Momentum Trader Report: 06/02/08

Trouble in the financial sector brought the market much lower today. The Dow touched a lower low which killed the 4 day rally attempt discussed in last nights post.

Although finishing much lower, the NASDAQ and S&P 500 are still in an attempted rally, and looking for a confirmation day.

Last week, I was posting charts of the NASDAQ which showed a potential head and shoulders pattern forming. Although the NASDAQ did well last week, todays action appears to be forming the right shoulder. A close below the neckline will likely mean much lower prices.

However, the NASDAQ did close above the its trendline, and could bounce. Keep a close eye on how the NASDAQ acts here.

There were two triggers from the Watchlist today. The first was EAC. It gapped up and then triggered right after the open, but then pulled back to fill the opening gap. Traders who held on were rewarded in the afternoon as the stock closed at the high of the day.

Although it’s hard to see in this chart, AGU also triggered, but closed below the entry price. Market action could have kept traders out of this one for now.

Last Nights’ Typos

My apologies to last night’s readers. I was finishing last nights report while I was on the phone, and the typing errors were horrendous. Although it’s not uncommon for me to have typing errors in these posts, parts of last nights report were unreadable. I tried cleaning it up this morning, and will do a better job of proofreading before clicking the “Publish” button.

Trade Ideas for 06/03/08:

I have a lot more stocks in the Watchlist than usual. I’m not sure what this means. Although many of them aren’t pretty, they could move. If you decide to play any of these, use volume and market action as a confirmation.

Good luck and good trading!