Tuesday, March 29, 2011

Watchlist for March 29th 2011

The markets are consolidating here and it seems like we may be setting up a range from ~1,260 to 1,340 on the S&P... I wouldn't be surprised if we touch the top of the range, near 1,330 - 1,340 and head back down... but we'll see!

Either way, I'm already long some LNG, NVDA and WNR. And here's what I'm watching for tomorrow: ICO, WTI, TFSL, TRC, GWW, EXEL, MOTR, BEXP, MRO, ARAY, SRZ, KLAC. You can see some of the charts below...

I have buy stops on several of these, and if the market rips higher, I'll be entering several positions!

Tuesday, March 8, 2011

Consolidation Period

I just wanted to do a small post on my take of the market right now. We're in a consolidation period, and have been in it for about 2 weeks. If you look at the SPY 30-min chart below, you'll see we've been holding this triangle formation for the duration of the consolidation. I expect another test of the lower trendline, and then a breakout to the upside, but anything is possible. Just keep in mind that we could also break down. However, with the US government pumping money into the market, I'm leaning towards the bullish bias.

Also, check out this chart posted by @donaldT44 on twitter. It shows the ES chart from back in November, when the market broke out of the triangle consolidation:

So for the time being, I'm playing it safe, have reduced the number of trades I enter every day and have also reduced my sizes. It's not a great swing trading environment, so just be cautious. As of today, I'm short some FAZ, VXX and long 1/3 size in SRZ, which is flagging on the daily: