Momentum Trader Report: 08/29/10

 Things looked pretty bleak in the market Friday morning, but stocks covered nicely and the NASDAQ moved up to close near a support level

Friday was a very good day for Thursdays trigger, TSL. I decided to hold this one into Friday and glad I did.

I had day traded AWI on Thursday, another trigger. Wishing I had  held.

A couple recent triggers that i am still holding also did well EXXI and ANV.

I bailed out of TLT on Friday. This wasn’t on the Watchlist, but did mention that I bought it earlier this month. It provided a clue on Wednesday that it was tired, and the run know looks done for now.

ARUN was a stock I had added to the Watchlist earlier this month. The pattern I was watching didn’t pan out, so I removed it from my watchlist, but it continued to make my scans, and I noticed a larger pattern forming, but it was due to report earnings. It reacted nicely on Friday and provided a nice entry (Which I didn’t take). I will be watching this one on Monday for some day trade possibilities.

The Dollar and the Euro have been good indicators as to what the market will do next. The Dollar has formed a bullish inverse head and shoulders pattern, indicating lower prices in stocks. It has run into some resistance though at its 50-Day MA.

The Euro has formed a bearish head and shoulders pattern, and has pulled back to the neckline.

The action in these currencies seems to indicate  more downside in the market, but I would like to see these break through their 50-Day MA’s to confirm that.

There are two other indicators I have  started to watch more, and they seem to make a good case for continued upside. The very reliable McClellan Oscillator, looks ready to move higher, which would signal more bullishness in the market.

And the VIX has indicators pointing lower.

I will be watching these closely, along with the Dollar, Euro and NASDAQ to point to market direction, but I think more upside is very possible here. Especially with some good charts starting to emerge.

Trade Ideas for 08/30/0:

Good luck and good trading!