Trading on the Edge

Market trend:

Market Watch:

SPX: Today had a positive day but did not take the market anywhere really. Lows and highs were within yesterday’s range. It did bring the index out of its oversold condition and thus not making it right time to enter new positions. Some of our picks have setup very nicely today but then it is against our rules to enter new positions unless short term market is overbought.

COMPQ: I think we can officially put the techs back into chop zone. It is still in oversold condition but today’s candle formation isn’t very encouraging. Bulls tried to push the market up and eventually lost as the price came down to close near the lows of the day. I would be inclined to give it the benefit of doubt and be ready to look at some new positions was it not for the lack of steam in the broader market.

DOW: Dow also had an up day with an inside bar. Basically didn’t go anywhere except to get out of our trading zone. All in all we sit and watch. Although some stocks are very well formed, I am going to sit out and watch and cancel all new trades

Industry Watch:

Industries in play: Broker/Dealers, Biotech, Pharmaceuticals, Healthcare, Chemicals, Retail, Airlines & Consumers

Free Stock Picks:

Today the market was weak and consequently we did not see too many triggers. Only