Momentum Trader Report: 07/07/08

07 Jul

Posted by Momentum-Trader as Momentum-Trader Report

The market started strong today, sold off in the afternoon in typical bear market fashion, then recovered some of those losses to finished basically flat. Whipsaw action. Nice if you’re a scalper. Oil was down today, which should have provided some relief for the market had it not been for the horrible action in the financial sector.

The 2 stocks in my Watchlist actually broke out today. Both broke out late in the day. Let’s take a look at those.

SVNT made a late day surge, at one point trading nearly 3% above the entry point. It pulled back in the final minutes but still closed above the entry point.

CELG traded a bit above the entry point a little before pulling back. I had my entry point above the shadow high, but in hindsight, I should have had it a little lower. Hopefully it will provide an opportunity to take a profit tomorrow.

I will continue saying it, we are very oversold and due for a bounce. When will it happen? Who knows, it could be any day, or still be weeks away. I am waiting for some confirmation before getting positioned for a short term rally. I will keep position size small for now. I don’t see many good charts for tomorrow anyway.

Trade Ideas for 07/08/08:

Good luck and good trading!

3 Responses

Suraj

July 8th, 2008 at 8:41 pm
1

Mo Trader:

As I’m still new to TTM Squeeze anything you can share as to how you would have exited MUR? On the chart front, the BB jumped out of the Keltner Channel and the momentum was positive on 7/1. The stock has taken it on the chin, down 10% in 3 days since. Thankfully, I exited the trade but per the indicator, would you still be in the trade? Any insight or thoughts? I just want to make sure I’m reading this right and understand the setup/exit.

TTM Squeeze potential candidates….
1) SGP - Looks real good
2) MDT

Longer term watchlist
1) AAPL
2) BIDU
3) FFIV

SS
daytrader

July 8th, 2008 at 8:58 pm
2

I watch your post every day. Very helpful for me, a small account holder (who lost 50% in one year) now learning not to loose. Keep up the good work.
Mo-Trader

July 8th, 2008 at 10:04 pm
3

Suraj,

In the TTM squeeze, John Carter uses the momentum oscillator to signal when momentum has petered out. He recommends closing the trade when you see two dark bars in a row, which happened in MUR today. But this assumes the trade is working. In his book, he gives examples of these trades, and mentions the use of stops. So I think you traded that correctly for this market. Personally, I only use the TTM Squeeze to enter a trade, never to exit.

Daytrader,

Thanks for the kind words. Glad to hear the site is helping you. Making these posts has been helping me too