Momentum Trader Report: 09/28/09

28 Sep

Posted by Momentum-Trader as Momentum-Trader Report

The 20-Day MA proved to be support in the S&P 500 today. It bounced from here, but volume was very low. The S&P 500 is still trading in this rising wedge pattern, with some room for more upside.

Since the 20-Day MA provided support for the S&P 500, it was resistance for UUP. The dollar is in a downtrend, and until that reverses, we should see higher prices in stocks.

There was some action in a couple of stocks from the Watchlist. Let’s look at those: Although I planned to sit out the first hour or so, I took the trigger in CYTK. It actually gapped up about 1%, but I took it anyway and had a nice day trade in this stock.

HE also triggered. This is not a momentum stock, but I like this chart, and now have a small position in it.

CBT also triggered early, but I didn’t take it. I wish I had, it made a nice move today before pulling back. I was being a bit selective here. Will keep an eye on this one tomorrow.

KIRK also triggered, and I didn’t like this breakout. However, I think a breakout is almost imminent here. Would like to see volume confirm it.

ILMN was a stock that triggered on Friday. It continued today. I still own it.

I passed on a trigger on Friday that I had, DYN. Of course, it moved strongly today. I should have gotten in today.

THO was a pick I had here last week, but I then removed it from the Watchlist. It moved today.

I take nearly every trade that triggers from the Watchlist. Sometimes I will pass if it doesn’t feel right, and for the last couple of trading days, I’ve passed on some of the triggers. Most stocks follow the market, and there needs to be a healthy market for these to work well.

Trade Ideas for 09/29/09:

Amazing what one day can do. Suddenly, there are a lot of bullish look charts. With volume so low today, I am a bit concerned, but it’s the end of the month and I am ready to put some cash to work.