Momentum Trader Report: 09/01/10

A very strong move in the market today. The NASDAQ chart did break out from its consolidation pattern, but to the upside, which I didn’t expect.  Although it’s not uncommon for the market to move higher before a holiday, it’s often on weaker volume. Today’s move was on strong volume; a very bullish move.

And all five stocks in my watchlist triggered today. Although none made huge moves, they all looked good and could move higher still. Let’s look at those:

I got in this one a bit earlier than the entry in my Watchlist and really like this one longer term.

ANV and EXXI are recent triggers that I’ve hung on to.  Both did well today, but ANV is starting to look tired.

Some other recent triggers did well today.  Too bad I day traded AWI; seemed like a good idea at the time.

It was not quite a perfect day for my account though. I had bought QID last week when it triggered this blue line. I had held onto it as a hedge, which I don’t like doing. I was stopped out of this at the open.  It was a small position, and probably the last time I hold an ultra short ETF for more than a single day.

Here’s a reliable indicator: When I start getting bearish enough that I consider shorting or buying inverse ETF’s, you can be sure a rally is coming. I am well aware of this, which is why I don’t play the short side, I’m not good at it.

Speaking of reliable indicators, I posted charts of NYMO and VXX earlier this week. Both seemed to indicate upside in the market. Those have worked out. NYMO is pointing to continued strength in the market.

Price action in VXX also indicates more strength in the market, since it usually moves inversely to the market. Its indicators could be firming up though.

Trade Ideas for 09/02/10:

I am just planning to manage my current holdings, and not very interested in taking new positions as we head into Labor Day weekend.  I only plan to watch these 2 charts.