31st Aug 2011–Pattern Study–Head n Shoulder with BIG HEAD !

Ticker:

 

1. PMI

 

Topic:

 

1. Head-n-Shoulder with a very BIG HEAD !

 

Lesson Learnt:

 

1. When  there is a head-n-Shoulder with a BIG HEAD, get ready to SHORT it. It can be the SHORT of the century.

 

Intraday Chart

-NA-

Historical Chart

31st Aug 2011–Pattern Study–MOToR city deep in the valley.

Ticker:

 

1. MOTR

 

Topic:

 

1. Lower and lower and lower ! Is it going to bounce back this time?

 

Lesson Learnt:

 

1. Intraday shows some sign of recovery with bullish cross of 20MA line and 50MA line and price stick on 20MA line.
2. Daily MACD shows that it is coming up from the central line.
3. We have a daily and weekly multiple bottom.
4. Weekly chart shows high volume of selling and high volume of buying the very next week. Does that mean bottom is in place?

 

Intraday Chart

Historical Chart

31st Aug 2011–Pattern Study–MOBI bounce!

Ticker:

 

1. MOBI

 

Topic:

 

1. Long term Multiple Bottom

 

Lesson Learnt:

 

1. Multiple bottom formation with triangle formation at the end. Price already came out from triangle formation and going upwards.
2. Intraday bullish cross of 20MA and 50MA lines with price stick to 20MA line.
3. Wait for a pullback for intraday for safer entry.

 

Intraday Chart

Historical Chart

31st Aug 2011–Pattern Study–When mountain collapsed, it collapsed hard !

Ticker:

 

1. LPLA

 

Topic:

 

1. When long term double bottom failed.

 

Lesson Learnt:

 

1. When a long term double bottom failed, it created BIG opportunity for short. I missed the short of this one.

 

Intraday Chart

-NA-

Historical Chart

31st Aug 2011–Pattern Study - HiSoFT might not be soft anymore.

Ticker:

 

1. HSFT

 

Topic:

 

1. A yearly double bottom

 

Lesson Learnt:

 

1. Wait for the price to come back for a safer entry.
2. Daily chart shows that MACD is coming up from the central line. Excellent!
3. A very interesting yearly double bottom formation at the weekly chart.
4. Entry and exit point can be set easily for this stock.

 

Intraday Chart

Historical Chart

31st Aug 2011–Pattern Study - The HEAT is on….. It's on the Wall Street !

Ticker:

 

1. HEAT

 

Topic:

 

1. The deepest valley of the grand canyon.

 

Lesson Learnt:

 

1. Intraday shows multiple bottom, bullish cross of 20MA and 50MA lines with price stick on the 20MA line.
2. Daily MACD start to show positive divergence.
3. Daily 20MA line tried to do a bullish cross with 50MA line but failed at the start of August month.
4. We could be looking at the bottom of this stock now.

 

Intraday Chart

Historical Chart

31 Aug 2011–August volatility

Copied from:

http://www.marketwatch.com/story/uncertainty-drove-august-trading-it-could-last-2011-08-31

30th Aug 2011–Want to learn Chinese, joint 人人.

Buy $	Sell $	Sell Short $	Buy Back $	Stop Loss $	Profit / Losses	Duration
7.40				5.96

 

Reason for Buy / Sell / Sell Short / Buy Back:

 

1. A deal with Microsoft pop its price high.
2. Daily chart looks like start to converge upwards.
3. Weekly chart looks like forming a big triangle with more chance to go upwards. The price keep staying above the up trend line.

 

Lesson Learnt:

 

1. At least I did not go and catch the price with it gapped up high which is a good point.

 

Intraday Chart

Historical Chart

29th Aug 2011–Getting your ex back from Friend Finder Network.

Buy $	Sell $	Sell Short $	Buy Back $	Stop Loss $	Profit / Losses	Duration
2.90				2.65

 

Reason for Buy / Sell / Sell Short / Buy Back:

 

1. Intraday 20MA and 50MA lines start to converge and price start to hang on to 20MA lines.
2. Daily chart shows that it is going to come out of the triangle formation -- upwards.
3. Daily MACD looks like just coming up from the central line.
4. Weekly chart shows that the down trend seems to turn. Looks like bottom is there.

 

Lesson Learnt:

 

1. Patient is important to wait for the right price. I was right for not getting into it during the result announcement.

 

Intraday Chart

Historical Chart

29th Aug 2011–My Analysis

BULL or BEAR ??

 

Short term (1 week)	Long term (1 month)
-- Expect the rally to continue for a week. -- Indexes showing bullish weekly candle formation with support at 200MA line. -- All sectors and USO are showing sign of stabilization. -- FXI also show sign of stabilization at 35. -- Baltic Dry Index shows a lot of improvement to my surprise. -- The rally can be short !	-- Look for the handle part of theVXX cup with handle formation. This is very dangerous. -- The temporary rally may not last. -- Watch out for the FED announcement in month of Sept. -- MACD of all indexes already below zero line.

 

Next Week Economic Data:

 

 

Input:

 

1. There should not be much surprise data next week.
2. This should help to bull to charge the market next week.

 

VXX chart:

 

 

 

Input:

 

1. This VXX weekly chart definitely tell a lot of bad news. It has a very BEAUTIFUL but DANGEROUS parabolic shape. Bottom could be in place for 3 months already.
2. Extreme high  volume for the past few weeks.
3. It looks like forming a cup with handle, a text book pattern that has very high potential of higher move in the near future.
4. Be very careful of the weekly 50MA line.

 

SPY chart:

 

 

Input:

 

1. Weekly 200MA line provide a good support.
2. Weekly 100MA line is now its resistance line.
3. MACD start dipping into 0 line. This is not good.
4. Previous weeks trading volume is equivalent to the high volume crashed in 2008.

 

DJIA chart:

 

 

Input:

 

1. Support at 200MA line and the trend line.
2. MACD start to dip into negative zone, this is not good.

 

NASDAQ chart:

 

 

Input:

 

1. Similar to DJIA

 

UUP chart:

 

 

Input:

 

1. We still need to see how UUP react after coming out of the triangle.
2. This will show where the market and GLD is going forward.

 

Sector Analysis:

 

 

Input:

 

1. Sign of stabilization across all sectors. Good sign for bull.

 

GLD, SLV, Petrol and Natural Gas charts:

 

 

 

 

 

Input:

 

1. Weekly charts of GLD and SLV show that they are both getting weaker.
2. Petrol USO is showing sign of stabilization.
3. UNG coming to another triangle formation. Its MACD looks like more potential to the upside. It is at the all time low again.

 

FXI (iShares FTSE / Xinhua China 25 Index Fund) chart:

 

 

Input:

 

1. Weekly charts of GLD and SLV show that they are both getting weaker.

 

Baltic Dry Index chart:

 

 

Input:

 

1. Very encouraging sign from the Baltic shipment chart.
2. Not sure how well it can sustain and not sure whether does it really going to represent the pick up of international trade, but definitely it is a good move.
3. Refer to my previous post on Baltic.