Momentum Trader Report: 09/24/09

Although there was some hope at the open for a rebound from yesterdays selling, it didn’t take long for the market to turn lower. The indexes closed lower, but they mask some of the big moves lower in beta stocks that have been ripping higher for months.

Once again, the dollar was the only indicator you needed to watch. It had an incredibly strong day, as seen here in the UUP. The trend here is still down, but I want to see how this works out before committing any money to swing trades. Is this simply a bounce or a trend change taking place?

Although a couple of stocks on the Watchlist traded higher briefly, I didn’t take them. I was stopped out of all remaining trades today, except for GLD, and after looking at the GLD chart, I probably should have sold it today.

I am not looking to short yet, but I do plan to watch the biotechs tomorrow if the market continues to break down, as this sector looks weak. Previous winners like IMMU, BCRX, SVA, ONTY, SVNT are breaking down and have plenty of room to fall if they want.

If the market rebounds, I have some trade ideas on the long side, but for day trades.

Trade Ideas for 09/25/09:

I am not necessarily going to buy these if they trigger in price. These are just stocks I will be watching in case the market does show some strength tomorrow. These are stocks that have held up well, and could gain some momentum if the market cooperates.

Good luck and good trading!