There are now about 30 trade ideas on the watchlist; a few
comments, First off, it get's hard for me to manage them all and so
I will look to tight up stops many of them or take some of the
under performing ones off. Obviously no one can play all
those and they are not intended to be; remember the watchlist is a
list of trade ideas, pick 3 - 5 of your favorites, or trade what
you can handle.
One other comment, I've been doing the watchlist for years now,
and one thing that I've observed over the years is that whenever we
start getting to the point where we have too many great trade
setups i.e. all the charts look good and you can buy just about
anything, generally some kind of pullback is usually near but can
go on for a while longer of course. It's not a sell signal
because the market can stay this way for longer, it's just
something to note so that you don't get complacent.
Again play the trend in place (which is up), but have stops in
place and trail them up, don't get complacent.
As far as the
market,just glancing at things quickly, the 15 and
30 min S&P 500 charts look like potential bull flag patterns,
therefore honestly I would not be surprised at yet more upside in
the short term.
Remember on the S&P 500, the nice round number of1200 is
only about 12 1/2 points away! Plus 1200 on the S&P 500
is major resistance going back to July of 2008, therefore why not
test that nice round number!
Sentiment says we are at extremes on numerous fronts.
Here's another readingafter today's action.
Upside should be very limited here and being heavily long extremely
risky. Cash is king here IMO.
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Watchlist Comments and Market Comments
Posted by matt on 5th of Apr 2010 at 06:34 pm
There are now about 30 trade ideas on the watchlist; a few comments, First off, it get's hard for me to manage them all and so I will look to tight up stops many of them or take some of the under performing ones off. Obviously no one can play all those and they are not intended to be; remember the watchlist is a list of trade ideas, pick 3 - 5 of your favorites, or trade what you can handle.
One other comment, I've been doing the watchlist for years now, and one thing that I've observed over the years is that whenever we start getting to the point where we have too many great trade setups i.e. all the charts look good and you can buy just about anything, generally some kind of pullback is usually near but can go on for a while longer of course. It's not a sell signal because the market can stay this way for longer, it's just something to note so that you don't get complacent.
Again play the trend in place (which is up), but have stops in place and trail them up, don't get complacent.
As far as the market,just glancing at things quickly, the 15 and 30 min S&P 500 charts look like potential bull flag patterns, therefore honestly I would not be surprised at yet more upside in the short term.
Remember on the S&P 500, the nice round number of1200 is only about 12 1/2 points away! Plus 1200 on the S&P 500 is major resistance going back to July of 2008, therefore why not test that nice round number!
Best to your evening
Sentiment says we are at
Posted by george_l on 5th of Apr 2010 at 09:43 pm
Sentiment says we are at extremes on numerous fronts. Here's another readingafter today's action. Upside should be very limited here and being heavily long extremely risky. Cash is king here IMO.