1. Title slide Good day traders and welcome to the premium video newsletter for Monday June 10, 2013. 2. The first thing I want to get into is the overnight trading action. The Nikkei was bullish and closed up over 400 points which is fairly impressive considering how bearish this market has been during the past few months. 3. The U.S. stock market was neutral overnight and for most of the trading session. Friday’s late afternoon rally took a lot out of the stock market and a breather was mostly expected by most traders today. The stock market didn’t do much during the trading session and was mixed along with the other indexes most of the trading session. 4. There’s no real interesting fundamental news till the middle of the week so the stock market is going to be technically driven during the next few sessions. This typically results in choppy range bound trading. 5. Looking at the intraday view of the SP500, it looks like the stock market is resting at a very critical level right now. If the market drops once again below the resistance level which is right below 1640, many day traders including myself are going to jump on the bandwagon and sell this market till it hits support near the 1600. 6. Looking at the daily view of the SP 500 contract it looks like we are just hitting the resistance level once again as the market consolidates further and further. This creates ideal conditions for short term intraday scalping but it terrible conditions for directional trading opportunities because the stocks lack any direction due to the stock market moving back and forth continuously. 7. The 10 year bond futures contract hit the support level and backed off once again. If we go much lower than we are at right now the market begin trading at another lower level. If this is the case cash bond prices will be moving higher. This will cause substantial volatility to the U.S. stock market so keep your eye out for this to happen especially towards the end of the week when most reports are coming out this week from the feds. 8. Looking at our existing positions MGA is not really doing anything at this type, the volume was very low which is not unexpected for a Monday without any news. Also keep in mind many people are taking summer vacations right now so liquidity will be slow till the end of the week. I don’t anticipate much trading action
for the next few days unless something unexpected happens. 9. Similarly, PFE is also doing very little, although I believe the only thing that’s holding this position up right now is sector related news. Several large funds are still holding this position and it’s one of the weakest ones in the sector. A little selling pressure and the stock will hit our target or $27.00 to the downside 10. Some new set ups for tomorrow morning for you. There’s a 4X4 entry on Intel semiconductor stock. Enter the position long if it trades above 25.20 on a buy stop. If the position is not filled by lunch time new York time tomorrow, cancel the order. If filled place a sell stop below today’s low at the $24.50 price level. 11. The semi conduct sector is gaining strength and is a bit stronger than the general stock market. I’m being careful with long entries right now due to the condition of the stock market. Always do sector strength analysis when markets are topping to ensure continued momentum in your direction. 12. The next new set up is an inside day short on a stock in the computer software industry. The ticker symbol is VMW and the name of the company is VMware. I recommend selling the stock at $69.70 and if filled place a buy stop to protect positions at $71.65. 13. That’s it for today’s’ tutorial. I’m sure as this week develops we will have a better idea where the stock market is going to be moving in the longer term. We mostly stayed out of trouble during the last few weeks while many traders got whipsawed back and forth. I’m still leaning to the downside with a range bound choppy bias, the way it’s been unfolding till now to continue. We will see later this week. 14. Good night everyone and I will update you tonight or early tomorrow morning as things develop. http://www.marketgeeks.com
Published on Jun 14, 2013
http://www.marketgeeks.com One of the biggest challenges traders face is knowing if the market is trending or range bound. These tips will h...