From Tze and Fellow Traders (09/12/2011 Trading Day):
In conjunction with ChannelguyTrader’s great in-depth market analysis videos and chart updates, FocalEquity is going to provide our long/short stock ideas based on our proprietary stock ranking model. The latest model output file is updated using pricing and fundamental data as of 09/09/2011. You can download the model output file here: StockModelOutputFile(Excel xls file format)_20110909
From ChannelguyTrader:
Hello Traders, talk about a rough week. By far this week was one of the toughest weeks to trade as there was a lot of headline risk to keep you from leaving your seat. Volatility is definitely back in the markets and if you are an experienced cowboy active trader these are the markets that you live for. If you are a swing trader this is the market that can keep you up late night. In my case I am an active day trader for a prop firm ( Broadstreet Trading) for those of you that don’t know and I am in the markets everyday. There are massive amounts of opportunities if you are patient and know the key levels to trade around.
In preparing for next weeks trade session, I went to the office today and wrote down key levels that I plan on watching going into next week. I want to be so prepared that I wrote down levels for the SPX, SPY, and the /ES. I also wrote down levels to watch on the VIX and the VXX. This is going to be my guide map as I plan on navigating pretty well through the much expected volatile markets that we should get next week. I will post those levels up tomorrow, but as far as today goes I put together a video for you guys and a chart that will be posted below showing how we are trading inside of a bearish upward sloping channel. Not only did we have that hard sell off that has formed that bearish looking channel, but we also have a head and shoulders pattern shaping up inside of that channel. Whether we break the channel on Monday or a couple weeks after, these channels usually resolve to the downside.
They key is to be patient and wait for all the stars to align before you try and get aggresivly short. Until we break the bottom line of the channel and close below it, I will remain bearish to neutral on all my positions. The chart I posted below is an hourly chart of the SPY, which includes my proprietary channel analysis that I have been studying over 2 years. You will start seeing more of these charts showing you guys how to start analyzing channels and how I have been able to notice patterns that form within side of these channels. Hope this keeps you guys busy for the day as I know most can’t wait for next weeks market as we should have some fireworks. Enjoy your weekend !!
SPY Hourly
From Tze and Fellow Traders (Long and Short Stock Highlights for the week of 09/12/2011):
It’s interesting to note that the our stock ranking model filtered out many shipping and maritime related stocks as long candidates. In addition, stocks that are severely beaten over the past few weeks are also good long candidates. Today, we are going to highlight two popular stocks. Bank of America (BAC) as a long candidate and AMZN (Amazon) as a short candidate.
Bank of American (BAC)
BAC is incredibly cheap right now with the stock trading $14 below its book value. Any kind of a turnaround news could cause a massive spike in this stock. Shorting BAC at this point is going to very dangerous even though from a technical point of view, BAC is very much a bearish stock.
Amazon Inc. (AMZN)
Amazon is risking a severe correction right now similar to NFLX (NetFlix) after it briefly touched above the $300 mark (then NFLX plunged over 30% after that peak). Amazon’s ATR index is very troubling and the fact that the stock is unable to make new highs despite the extremely elevated ATR index is a bearish signal for this stock. Shorting AMZN here would be prudent.
BAC – hitting $7.00 up only slightly.
AMZN – up 1%
The market movement this morning is not as bad as I expected. We will see what happens during the afternoon session.
Well with the TV president pumping his jobs plan don’t be surprised to see the market end up green. I see it as a head fake pull back only to be shining green or close to it by close.
I think you guys are right. The market seems like it looking for temporary support.
Gold falling. Dollar still showing strength.
What I tell ya this morning? Green baby! Just like the dollar. Always watch the dollar.
What a nice squeeze into the close today guys. Bulls still remain in control as you can see we gapped below the flag and got bought right back into . Amazing!! We had a green day today and navigated pretty good today in the chat room. I will go over some analysis and some extra stuff in tonights video and then also will take a look at the stock model to try and incorporate some ideas from that also. Thanks guys and hope everybody had a good day today…
Well actually since I am playing short I got screwed in the last 20 minutes typical BS.
Hey Channelguytrader,
Look forward to seeing your incorporating our stock model outputs into your videos. I think that would be a trememdous value to traders and investors. We will post the stock model output Excel file on top of your post every trading day.
As soon as ANW dropped to 5.02 and then shot up to 5.20 in a matter of minutes I then knew they worked something out with the Greece deal which I figured they would to keep it alive so they can get their other bailout money. Once that runs out then it will be the same ole crap.
I doubt that Dsavill. Europe is still very much in a crisis.