Sunday, August 24, 2008
RedDirt's Weekly Update
For those of you who only read blogs and don't publish one of your own, probably don't realize the work involved. This work load, especially when changing chart providers, is some major bullshit. I'm tempted to say the hell with it! Trade for myself and take as much money from the newbies as I can. But, for some reason that's just not me. I will continue to create the free charts needed to get my point's across. So, just keep hanging around. You will feel privileged to be in the know of how much free info on the markets is available for the above average intelligent JOE Trader's like us.
Labels: trading desk
Wednesday, August 20, 2008
RedDirts BricTrade Update
The candlestick pattern your looking at is what is known as an abandoned baby. If you click on the chart for the China ETF, symbol=FXI you will see this pattern has developed over the past three days. The pattern is confirmed by looking at the Historic Price Quotes at stockcharts.com.........I just had to make sure the shadows of the doji were totally isolated from the Monday lows and the Wednesday lows. So there it is, an abandoned baby reversal pattern. I wish my BRAIN could recall the success rate of this candle pattern. I recently read an article in S&C Magazine that gave the stats on success rates of several candle reversal patterns. Of course I can't locate the article when I need it. But, here is what I'll do. I'll buy an opening position of say 100 shares in the FXI and set a Stop-Loss Order just below the low of that abandoned baby doji. I would like to get filled somewhere below the close on Wednesday and somewhere above the top of the abandoned baby doji. So it looks as though I'll have to place a limit order to try and get filled in that space. This trade is supported by what I'm seeing in all the BRIC trade charts including the Hong Kong Option Index. ($HKO) India actually appears to be a buy at this time also. Brazil and Russia seem to have made some kind of bottom. I think within' this past week or so, there have been some agreements made among the BRIC countries and the USA. Looks as though the best trade could be long China and USA to the detriment of Brazil, Russia and India. But, as I see it, invest in growth in the US and China and look to find some sort REIT investment in Brazil. Look for an infrastructure investment in Russia to go with this trade. I think the best India trade may have something to do with technology (SAY) or I'll just buy a small portion of INP.
Labels: BRIC ETF's, candlestick charts, growth stocks, major indices, RedDirts BRIC Trade, technical analysis
Sunday, August 17, 2008
RedDirt's Weekly Update
The Advance-Decline Line tells us we are still in a downtrend. The problem with this indicator is, in the past I have seen it trending lower has a small portion of the stocks in a total market will carry an Index higher. Sometimes much higher. This indicator is therefore somewhat deceiving. It could actually be trending lower and the overall market could be making higher highs. So, what to do? I would suggest not throwing this advance-decline line out. What I feel is important is to watch it along with the $vix and growth vs. value to try and determine where the action is. Just look at what Apple, Google and a few other stocks where able to do by themselves as far as moving an Index. It's the new leaders that emerge when other's begin to fail that support the whole system. Sorry, but that's just the way things are.
The latest MOOSECALL from William Dirlam is once again to stay $CASH$. Who could blame him for being conservative. It's your money he's trading not his. I would be willing to bet he is buying some positions with his own money @ these ridiculously low prices. XRX trading at 10 times earnings. GE trading at 13 times earnings. Come on, get real. Do you really think multi-nationals with products and services in BIG demand in a growing world economic expansion will not thrive over the next decade? I believe things are much better than they appear to be. Sure, big banks could fail, hedge funds could collapse, families could be booted out of their homes. But, America WILL Survive.
Now on to what I'll be working on over the next few weeks. MORE FREE CHARTS to come. I'll be working on the replacement BRIC TRADE charts. Also, I'll be adding links to my GARP SCAN stocks. Charts for every stock that shows up on the scan. You can click HERE to see all the stocks that made the most recent GARPSCAN.
Tonight I toured the area that will be affected by T. Boone Pickens Plan . The land affected is mostly wheat fields. The 35000 volt high lines will cut the town of PIEDMONT basically in half. When I drive into my little bed and breakfast community, the sign coming into town reads,"Winds of Progress". So, as I see it, if we are willing to divide this community in half to escape our dependency on foreign oil, it's worth it! Boone's plan is already in affect. There will be more GAS RIGS drilling in Oklahoma next year than any time in history! This state truly is recession proof. T.Boone supported Bush during his race to be President. Boones' support for him was based on building an Energy plan to ween us off foreign oil. Bush spent 6 years in office with a Republican Congress and NEVER made any progress. T. Boone got so "pissed off" that he said," the hell with Bush and the Saudi Bastard's, I'll do what needs to be done all by myself." He is proving, one man can make a difference. There will soon be a new ETF trading on the AMEX. The proposed symbol will be "OOK". Yes, Oklahoma is OK. The ETF will feature Oklahoma based companies, either headquartered here or having a major presence in this state. OOK has outperformed the S&P500 by over 20% each year since 2000. Of course the Index was heavily energy weighted. Things could quickly swing to technology. Wind, Switch Grass, Solar etc... I'm pretty sure the ETF will fall once it begins trading, But at some point in time it will be a great buy!
I'll soon be back to posting my normal weekly update. We'll look at one chart, study the indicator's attached to that chart, and talk about the support and resistance levels corresponding to the chart at hand.
Thanks for stopping by and Good Luck with all your trades!
Labels: decisionmoose, garp stocks, green trade, growth stocks, sp500, stock scans, technical analysis, weekly update
Sunday, August 10, 2008
RedDirts Weekly Update
RedDirt's Charts list continues to grow. I've built out and added links to free charts as the RedDirt Trader Charts link will be gone on September 23rd. The newest addition to the left is the $SPXA50 which shows the number of stocks in the S&P500 which are trading above their 50 day moving average. Normally 100 provides support and 400 is resistance. During bull markets the line can stay above 400 for weeks at a time. During bear markets it can dip below 100 for long periods. I've added an oscillating indicator to the chart, the stochastic. It should help in determining good buying opportunities as it crosses above 20. Also at the bottom of the chart you will see the performance of the $SPX for the past year. As you can see the S&P500 is down 10.82% over the past 12 months.
http://www.decisionmoose.com/ William Dirlam's Moosecall is once again to stay in cash. Since my RedDirt's MooseCharts will be gone I've built individual free charts for each of the ETF's that the Moose uses in his program.
I'll continue to add more chart links in the future. Thanks for stopping by.
Thursday, August 7, 2008
vote to make things better
I know there are a few readers of this blog from the RedDirtState. I never intended to run a political ad from reddirttrader but this guy deserves your vote come November. Visit http://andrewforoklahoma.com/ and be sure to volunteer and support Andrew as he will make a difference in this country. VOTE for a better future.Thanks,
reddirttrader
Wednesday, August 6, 2008
Hard at Work
Take a look to the left side bar and you will see I'm hard at work building out some free stockcharts to keep this blog up and running. Click Here to see a sample of what life will be like RedDirtTrader Charts A.D. The 1st link which is a premium site will soon disappear. All we'll be left to work with are the tools of the free charts @ http://stockcharts.com/. I intend to help teach traders how to take advantage of just how much free information is available on the World Wide Web(www).Labels: Nasdaq 100, sp500, stockcharts, technical analysis
Saturday, August 2, 2008
RedDirts Weekly Update
This CHART shows what I interpret as being Bullish Divergence. July's low price in the $SPX managed to make a lower low than the March bottom but, of the 500 stocks in the index there was nearly double the number of stocks trading above their 200 day moving average when compared to the low for the S&P made back in March. I would expect to see a technical rally occur in the S&P that could possibly see as many as 250 or more stocks make it above their 200 day moving average.
This week Bill Dirlam posted on MARKET TIMING with DECISION MOOSE that his program tells him to continue staying in a 100% cash position. What I found humerous is he actually mentioned Jim Cramer in his Moosecall for the week. After looking at the charts I can see why Cramer is calling a bottom. After reading Bill's Moosecall I favor that this is just a bear market rally. Could this be the beginning of a new Bull Market? Who Knows. But, the next one has to start somewhere, might as well be here.
As for the BricTrade this past week, Brazil posted a gain of 2.17%. Russia somehow managed to squeeze out a 0.02% gain. India was up another 0.41% and China fell -0.29%. The commodity countries (Brazil and Russia) were hammered badly in July but China and India both had nice gains for the month. India was up 15.19% for the month and China gained 4.59% in July.
As of 09/23/2008 my Stockcharts will be history. So, my public chart list will disappear. I've decided to let my account expire and use the charts provided on Scottrade Elite. I know for a fact I'm going to miss building my very own indicators and charts but I intend to push Scottrade into continuing the improvement of the charts at their site.
My house is still on the market. CLICK HERE to take a look. If you know of anyone looking to move to the Oklahoma City area be sure to direct them to http://322cypress.blogspot.com/ . Homes here in Oklahoma didn't see the BIG run up leading into 2006 and because of that the housing market hasn't seen the BUST like some areas have. In fact home prices in Oklahoma actually increased by 4% over the past year.
Sorry about the real estate commercial. Thanks for stopping by and good luck with all your trades!
Labels: bullish divergence, decisionmoose, RedDirts BRIC Trade, sp500, stockcharts, technical analysis, weekly update
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