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
Friday, June 13, 2008
What makes a Market?
A buyer and a seller is what makes a market. If I've got it, and you need it or if you've got it and I need it. Market prices come down to supply and demand. If I've got it and you need it we will eventually settle on a price no matter how wide the spread at the beginning of our negotiations. This is where liquidity comes into play. If the commodity or equity has fewer participants then the spread is likely to be wide versus many suppliers and many buyers whereas the spread will be tight. If you are a newbie, keep this in mind. Start out trading only very liquid, high volume stocks or ETF's. If you want to stay with this game, take a look at something like the SPY or the QQQQ's and just learn how to trade one of those two markets. Then once you get really good at that you may want to add a little leverage by trading the profunds or futures. Keep watching page 1 and 2 and the first 5 charts on page 4 @http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID763084. All time frames monthly,weekly,daily,60 minute and 1minute charts are telling me to be short the S&P 500 right now. I'm still flat the market since coming back from vacation, but for some reason my gut tells me to keep my powder dry and only enter this market to the long side one time frame at a time. 20% increments. One fifth of my funds for each time frame. BE PATIENT! If all the big shots are having to de-leverage, where is that money going to go to work? Maybe the Spyder's and the Q's. I think this is why Buffet made a safe BET ...........
Labels: Nasdaq 100, sp500, trading desk
Friday, May 16, 2008
Fill the Gap
I'm watching this gap closely. If this Nasdaq100 Chart happened to be a nearby cotton chart every old- timer cotton trader eyes would be looking to see if the market closes above or below this gap and what kind of volume took place for that trading day. I know you are all saying the $NDX gaps all the time. Well, this one is more significant due to the fact this gap was left the day the $NDX closed below the "all important" 200 day sma. For those who looked at the cotton chart will swear, cotton is headed back to 87 cents.Labels: commodities, Nasdaq 100, technical analysis
Sunday, March 30, 2008
RedDirt's Weekly Update
We are now one trading day away from the SP500 closing the month lower for the 5th consecutive time. I can't tell you when, or even if, this has ever happened before. The Weekly Chart is trying to tell me we are due for a bounce back to the 1380 area. But who knows for sure, we're in uncharted territory. Bear Market's suck for most people because they just haven't learned what to do and when to do it. A good monthly chart for most Index buy and holders is a good place to start. I can't complain, my 401k is beating the SP500 by 15 percentage points YTD. Whoever said you can't time the market is a FOOL!The Nasdaq 100 looks to be showing signs of a pulse. Week before last the weekly chart pulled off a bullish engulfing candle. Then, this past week we traded at a higher high. That's NICE! I ran a new GARP SCAN this week and was surprised to see how many tech stocks showed up on the new list. It seems there is a pent up demand for high quality tech stocks and at the same time a decrease in supply. This could lead to a nice surprise to the upside for old name tech stocks.
This past week I finally completed the BRIC Trade Page and what a relief that was. Check it out to see the bullish divergence that has developed. I'll have to keep watching the individual Bric Country ETF's for a clear buy setup before getting involved once again.
I will continue to work on the GREEN TRADE. But for now the ETF of choice is PBW.
As for the MooseTrade. Bill says to stay cash for another week. I would recommend reading Moosecalls every time it updates for some very interesting commentary from Bill Dirlam.
Now for this weeks trading lesson. Nobody plans to fail, they just fail to PLAN!
Labels: BRIC ETF's, decisionmoose, garp stocks, major indices, Nasdaq 100, RedDirts BRIC Trade, sp500
Wednesday, February 6, 2008
Tech Rally May Come Very Soon
If the upward moving trendline holds has support we could have a tech rally looming. I'm preparing for it. Looking to take advantage of any rally with QLD. $NDX:$SPX Chart
Labels: Nasdaq 100, sp500, technical analysis
Thursday, January 17, 2008
CAPITULATION
Have we witnessed true capitulation in the $NDX. I believe so. The breaking of the trend line and the most volume for a single day in years. Seems so weird to see this happen so close to recent highs and nearly 38% Fibonacci Retracement level above 2002 lows but it has happened. Thank God. Now for some really big gains. I warned of the SPINNING TOP on 11/02/2007 and laid out several support area's for a bottom. It now appears one of the major resistance area's will soon be the new support. QID up about $13 since November 2nd.
Labels: candlestick charts, growth stocks, major indices, Nasdaq 100, stockcharts, technical analysis
Monday, January 14, 2008
Safe Place to Hide
Finally found somewhere to hide out in my FRAIDY HOLE. Tech is going to start outperforming big time. May not be today but it's time is coming. It's testing the breakout on the RATIO CHART for support so I'm looking for some leaders to show up soon. I'm also looking at some laggard's with clean sheets. No sub-prime slime. The hardest hit clean dudes like XEROX might well be a good bet. Maybe I'm just Photo-copying my BUTT , but the last time XRX traded at this HISTORICAL level it turned out to be a 5 BAGGER. Yea, I'm talkin' $60/share down the road. July of 2016 only about 8 1/2 yrs out from now. Check out the CHART for yourself.
Labels: garp stocks, growth stocks, Nasdaq 100, sp500, technical analysis
Tuesday, November 13, 2007
GETTING DOWN TO DIRT CHEAP?
The Nasdaq 100 has under performed the S&P500 as you can tell by the chart to the left. However, we are getting very close to testing the breakout on the $NDX:$SPX ratio chart. It is now time to start looking for a reversal pattern on the Nasdaq 100 as well as some of your favorite tech stocks. Look for a hammer, bullish engulfing or bullish piercing candle with much higher than average volume for a signal that the bottom is in. HERE_ are some examples of some other reversal candle patterns. Some are stronger than others,,for example the hammer with very high volume most likely is THE Bottom. Sometimes a weaker reversal only leads to a temporary bounce (which is a playable trade) and then the downtrend continues. The SECRET RECIPE chart shows that the $SPXA50 has not yet reached my buy signal for the SP500. I'll continue to wait patiently to put some money back to work in my retirement account, which could be tomorrow, who the hell knows. I'm sure the chart will tell me when. But for now my money is drawing interest at a very low rate, still that's better than it disappearing into thin air. Be sure to check out at least the 1st four pages of charts @RED DIRT TRADER CHARTS for some insight to the market.
Labels: candlestick charts, Nasdaq 100, sp500, stockcharts, technical analysis
Friday, November 9, 2007
Check out the $NDX(click here for updated chart)
Last Friday I added a comment to the weekly $NDX chart. The support areas are no longer valid as they have moved as the price has moved. So we now look to old resistance to see if new support tries to form in that area. If not look to old support. If all else fails just watch this CHART which led me to make this earlier POST .
Labels: major indices, Nasdaq 100, stockcharts, technical analysis
Thursday, October 18, 2007
Bearish Candle Pattern for Nasdaq100
Click on the image of the chart to the left to view it, or follow this link Nasdaq100 to take you to my chart book for Red Dirt Trader . If you click the Red Dirt Trader link look for chart 21. While you're there check out the 1st page of charts for the S&P500. Page 2 is all about the Nasdaq100. Page 3 and beyond takes a look at some other charts of interest. I'm trying to integrate the blog with my public chart list at Stockcharts.com to make an easy transition for my readers to follow along with what I'm seeing in the charts.
Thanks for stopping by.
Labels: bearish engulfing, major indices, Nasdaq 100, stockcharts, technical analysis
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