www.guerillastocktrading.com I have got oodles of interest on my pair trading article and the play I entered in both Apple and Research In Motion. I went long Apple and short Research In Motion. The approach of matching a long position with a short position in two stocks of the same sector is called pair trading. This forms a hedge against the sector and the general market that the two stocks are in. The hedge created is essentially a gamble that you are placing on the two stocks; the stock you are long in against the stock you are short in. As its name suggests, a pair trading line of attack is a double-pronged method, where two apparently unrelated option or stock positions are opened simultaneously. The tactic can give somewhat of a safety net to defend against an unexpected move in a certain sector, while capitalizing on a specific equity’s relative-strength backdrop. In effect, a pair trader hedges his or her bets, opening positions in two interrelated equities or indexes and working them against one another, choosing 1 call (bullish) position and 1 put (bearish) position. The duo of positions then collectively gives money-making returns amid a number of outcomes. For instance, I had a great point of view regarding Apple, but a pessimistic sentiment concerning Research In Motion. I went long on Apple whereas I shorted Research In Motion. I also had an uneasy sentiment concerning the entire technology sector. By taking a short position in Research In Motion, it …

Bookmark It

Hide Sites

Related posts:

1. Stock Market Technical Analysis On SPY For June 28 2010 www.guerillastocktrading.com Here we go for some weekend technical analysis...
2. Stock Market Investing Tips : Online Stock Trading Advice When looking for an online trading broker, be sure...
3. Stock Market Trading Help Online Trading and Swing Trading www.todaytrader.com.Day trading in stocks is both risky and difficult....

Related posts brought to you by Yet Another Related Posts Plugin.

Hey guys, Today we looked at the massive rip higher, and tried to balance the portfolio with bullish intraday trades. But I want to go ahead and give you a heads up that a lot of resistance levels were tested today and a confirmation break of these resistance levels will be required to consider them broken. A move lower tomorrow is very possible as the market will need at least one day of consolidation to break the key 94.50 level on the SPY, which holds the inverse head and shoulders neckline in play. If we confirm a break of that level, and the 200 SMA tomorrow, then the bulls will have more power to bring the market up to the 38.2% retracement of the whole bear market move lower around 1000-1010 on the S&P. Today we also were 5 points away from hitting the Dow Jones 200 SMA daily. The Dow Jones has been known to act better technically, so maybe that’s the sign for the potential pull back. I also look at the VIX, XLF, GS, VMW and AAPL for more trades and sense of market direction!

Bookmark It

Hide Sites

Related posts:

1. PART 1 – Options and Stock Market Technical Chart Analysis for October 16, 2009 by Idan Koren Today we looked at many charts all around and...
2. Options and Stock Market Technical Chart Analysis for August 20, 2009 by Idan Koren Today we play the calendar game. We start off...
3. Options and Stock Market Technical Chart Analysis for April 20, 2009 by Idan Koren Today my friend traders and I looked at a...

Related posts brought to you by Yet Another Related Posts Plugin.

www.guerillastocktrading.com Provided you watched the weekend update episode on SPY then you by now know that I am ready to close my short position for a loss. If that occurs, it will be my third beating back to back and will activate in my in-house stop loss directive of no more trading for awhile. Nonetheless, to close out my short, bulls have to demonstrate they have a hold over the trend. In particular, I want to see the downtrend channel wall resistance taken out, the Fibonacci 61.8% retracement level taken out, and it has to come about on big volume. Volume on today’s chart was ghastly. Upside volume fell even lower than last Friday. Over the preceding week of trading, we have had tons of buying going into the closing hour of stock trading. You can see that over the last four trading days, this final hour rush has been getting weaker and weaker. So what does the declining volume imply? It implies that fewer and fewer traders are ready to chase markets higher and buy at these levels. This has got to give bears assurance that bulls can no longer take the stock market higher and give us the next move downward. What is truly interesting is if you look at the money flow on the weekly stock chart. You can make out that we have a bearish divergence involving the price of SPY and the money flow. We have a comparable negative divergence back and the end of 2007 that predicted the huge move downward on SPY from 155 to 70. The money flow is currently telling us that we will …

Bookmark It

Hide Sites

Related posts:

1. Stock Market Analysis 07-09-2010 www.guerillastocktrading.com Bulls take the stock market higher once more....
2. Stock Market Technical Analysis July 2010 Outlook www.guerillastocktrading.com Through this July 4th extended weekend, I’m going...
3. Stock Market Technical Analysis On SPY For June 28 2010 www.guerillastocktrading.com Here we go for some weekend technical analysis...

Related posts brought to you by Yet Another Related Posts Plugin.

www.alphatrends.net

Bookmark It

Hide Sites

Related posts:

1. Stock Market Trend Analysis 4/9/09 sign up for next free live event at www.alphatrends.net...
2. Stock Market Trend Analysis 4/30/09 if you are going to watch on youtube, why...
3. Stock Market Trend Analysis 4/16/09 www.alphatrends.net Bookmark It Hide Sites $$('div.d3806').each( function(e) { e.visualEffect('slide_up',{duration:0.5})...

Related posts brought to you by Yet Another Related Posts Plugin.

Max Keiser talks to Stacy Herbert about the market crash of Thursday May 6th 2010 recorded on May 8th 2010

Bookmark It

Hide Sites

Related posts:

1. Stock Market Crash Biggest Stock Market Crash Dow Jones History www.StockMarketFunding.com 5-6-2010 Stock Market Crash Shorting Indexes and Overbought...
2. Stock Market Sell Off 2010 Stock Market Plunge 300 Points Dow Jones Index www.stockmarketfunding.com Dow Jones Stock Market Sell Continues 300 Point...
3. 6 May 2010 Stock Market Crash (Live Coverage)!! Incredible!! 6 May 2010 stock market crash! This is absolutely...

Related posts brought to you by Yet Another Related Posts Plugin.

www.guerillastocktrading.com Institutional traders have targeted trade the trend investors like us. With cold, evil, fashion, Institutional stock traders are selling into the up swings and covering shorts into the down swings to compact the swing range too narrow for most of us. This has created both to the upside and to the downside over the previous week. What has spooked bears like myself is that a certified higher low is now in place with confirmation on today’s chart. Like I wrote about last week, the life cycle of the previous downtrend channel has completed. We are now in nomad territory where a different channel is being formed. We do not have enough information yet to determine if we are going into a sideways trading channel, or an uptrend channel. When there is no clear trend, then what must trade the trend traders do? Walk to the sidelines and the protection of cash. At present we have been in cash two times over the past several weeks and when we thought a new trend had been established making us jump back in, it turns out we were head faked and murdered. I do not know about you but I’m weary of getting my butt kicked by the better prepared and armed Institutional traders. Someday we might have a Traders Bill Of Rights where the battlefield is made just, but for now, inequalities continue to exist amid professional and amateur traders such as Institutional traders have access to all limit orders, they have direct access to market makers and can make non-open …

Bookmark It

Hide Sites

Related posts:

1. Stock Market Trading and Analysis for 03/12/2010 It’s been another outstanding week for Robert using the...
2. Stock Market Technical Analysis July 2010 Outlook www.guerillastocktrading.com Through this July 4th extended weekend, I’m going...
3. Stock Market Trading and Analysis for 02/23/2009 Awesome day!!! Here are the links to awesome resources...

Related posts brought to you by Yet Another Related Posts Plugin.

www.guerillastocktrading.com I’m a registered Independent. I want to make that point clear right at the start, I’m not a Democrat. I don’t care much for Fox News, Sean Hannity, brand of Republicans who place politics in their analysis of gold. I do not believe anyone has got to allow political partiality to influence their technical analysis. But when two political parties are in a struggle over the economy and it is having an impact on the stock market, you have got to bring in political parties in your technical analysis. Democrats are trying their best to improve the economy before the November elections to win votes while Republicans are doing their best to hinder any policy that could improve the economy heading into the November elections. This account is not really a political bias declaration, it’s just the way it is. Republicans are presently blocking movement on a bill to improve the economy, keep jobs for teachers and cops, and help people buy their first house; another bill that would hold oil corporations accountable for any disasters they cause by removing the current million liability cap; and most recently the extension of jobless benefits. In the past 3 weeks, 3 million people have been booted off unemployment: that’s about 1.2 million people a week. Major news outlets recently reported that for every job opening at McDonald’s there are 300 to 500 applications turned in. Lots of the people applying for jobs at McDonald’s possess university degrees. I …

Bookmark It

Hide Sites

Related posts:

1. Stock Picks, Stock Market S&P 500 Technical Analysis For Week of 1-10-10 Go to www.quickstockpicks.com for all your stock market info,...
2. Choppiness and Consolidation: 2-13-10 Stock Market Analysis www.tplinvestment.comstock market analysis, SPY, using simple technical analysis, multiple...
3. Stock Market Technical Analysis Review 1/8/10 Technical analysis of: SPY, QQQQ, IWM, XLF, SMH on...

Related posts brought to you by Yet Another Related Posts Plugin.

www.guerillastocktrading.com Bulls take the stock market higher once more. I am short this market. Monday might be a key day for me since I will be ready to close out my short position and move to cash. However, there is something crucial I need to see from the bulls on Monday before I close out my short position. That is volume. The volume over the preceding three trading days has been dropping into the upward move. Although it’s more than simply that. We are approaching a vital resistance zone that goes from the 61.8% Fibonacci retracement mark all the way up to the 50 day moving average. What is especially worthy of note is that buyers are falling off as we come up to that crucial resistance zone. This tells me one thing. With volume dipping, there is no way bulls are going to retain the force to burst through this key resistance zone. Volume must increase on the buy side. Buyers must come in to this market in great numbers on Monday or Tuesday in order to breach through this resistance zone. At the moment like I said, I’m short this market. So I’m not moving to close out my short until I see evidence of lots of buyers stepping in next week. With the volume falling into this upward move, bears are gaining faith that bulls are not going to be able to break the 61.8% resistance or the 50 day moving average. In this episode I do technical analysis on the SPDR S&P 500 ETF (SPY) and illustrate to you what I am looking for next week in order to close out my short position …

Bookmark It

Hide Sites

Related posts:

1. Stock Market Analysis On SPY And The Short Squeeze www.guerillastocktrading.com Provided you watched the weekend update episode on...
2. Stock Market Technical Analysis July 2010 Outlook www.guerillastocktrading.com Through this July 4th extended weekend, I’m going...
3. Stock Market Technical Analysis On SPY For June 28 2010 www.guerillastocktrading.com Here we go for some weekend technical analysis...

Related posts brought to you by Yet Another Related Posts Plugin.

trade-technicals.blogspot.com CHARTS FREE AT http

Bookmark It

Hide Sites

Related posts:

1. Stock Market Technical Analysis going into 2010 View Brian Shannons video on the blog. Thank you...
2. Stock Market (July 15, 2009) www.trade-technicals.blogspot.com CHARTS FREE FROM http Bookmark It Hide Sites...
3. Stock Market Technicals – Where Could We Be Going? – Forecast Video trade-technicals.blogspot.com CHARTS FREE AT http Bookmark It Hide Sites...

Related posts brought to you by Yet Another Related Posts Plugin.

www.guerillastocktrading.com The S&P 500 took major technical damage on today’s chart as money continued to gush out of stocks and into the shelter of bonds. If you keep track of bonds then you know that massive buying in bonds has been going on for sometime now. The question that we all wondered was why were institutional investors still buying bonds in such large numbers. We bet we at the moment are aware of the answer by performing technical analysis on various markets and searching for connections linking them. This inter-market investigation of connections among a variety of charts has given us some interesting insight into why institutions have been purchasing bonds for the last 5 months. It has to do with lumber. No I am not a single fry short of a happy meal. When the price of lumber drops, bonds predictably go up. If you think about it, it makes wonderful sense. Lumber prices go down when demand falls off. In a recession large ticket items like home construction are hit hard since no one can afford to buy a house or even a car. This drop in demand for lumber makes the price of lumber drop as well. Seeing as home construction and the financing of homes, together with equity lines, make up such a huge percentage of our GDP, the drop in home construction implies unpleasant things for our economy and stock market and great things for bonds. What especially gets me furious at myself is that I didn’t see the spot on Fibonacci 50% retracement on the S&P 500 on Monday. I …

Bookmark It

Hide Sites

Related posts:

1. Stock Market Technical Analysis On SPY For June 28 2010 www.guerillastocktrading.com Here we go for some weekend technical analysis...
2. Stock Market June 2010 Outlook www.guerillastocktrading.com Lance recommended that you go to cash back...
3. Stock Market Analysis 07-09-2010 www.guerillastocktrading.com Bulls take the stock market higher once more....

Related posts brought to you by Yet Another Related Posts Plugin.