Momentum Trader Report: 09/23/09

23 Sep

Posted by Momentum-Trader as Momentum-Trader Report

Finally, a distribution day in the market, which indicates institutional selling. Things were pretty quiet going into the FOMC statement in the afternoon, then stocks rallied. As usual, the first move is the false one. The dollar began to rally pushing stocks much lower into the close. A reversal day, as seen in this chart.

There were a few stocks from the Watchlist that triggered in price, but I only took 2. I took MGM shortly after the open, which looked strong then. I also took CHINA in the afternoon. I lost money with both, although CHINA could have been a nice day trade had I not held on too long. I was expecting another move toward the end of the day. I got out of it around breakeven.

Those 2 trades were only part of my frustrations. Adding all those stocks to the Watchlist was not a good idea on Fed day, and with the market running out of steam and some recent triggers failing. Furthermore, YRCW made my screen last night, but I passed on it. I also saw it move at the open, could have got in then, but had a lot of stocks to watch. That was the hot momentum stock of the day.

However, it was a great day for recent trigger PWRD. This was on the swing trades I was still holding, and it made a powerful move today.

This remains one of the few stocks I am still holding. I closed most of the remaining ones today, and have tight stops on everything else.

I think everyone is expecting the market to roll over here. We have a distribution day in an extended market with technical indicators pointing down, so that seems obvious. A pullback could also be heatlhy. However, the market often moves in the opposite direction after fed day, so it’s possible some stocks could move. We’ll see.

Looking for day trades here. I don’t plan to buy anything unless the action looks too good to pass up. Cash is the best place to be for now IMO.