It's beginning to look more like a buyable pullback than a market turn-around. The CPC and the CPCE turned bullish after today's action; and the VIX continues to be bullish.
We have several economic reports due out tomorrow, including initial unemployment claims, export and import prices, and the trade balance. The initial unemployment claims report announced before the market opens will have a significant bearing on the morning market action. The market is expecting 650,000 new claims, so if the news is worse or better, it will affect opening prices accordingly. We are heading into a holiday weekend with light volume expected this week, so the market will be volatile with a bullish tint. The market likes to go into holiday weekends on the upside.
The daily and 15-minuts full stochastics are bearish with the 30-min stochastics being leaning towards bearish, but will switch to bearish or bullish at the open, depending on market direction at the open.
A great tool for determining entry points is the pivot-point calculator. A free copy of of which can be downloaded at the following website:
This calculator can help you determine the weekly, daily, or intraday support and resistance lines when entering a trade. The pivot point can be thought of as a neutral price for a specified stock or index. Above the pivot point the action is considered bullish, and below is considered bearish.
Pivot points are very important for determining entry points. You don’t want to chase a stock that is 5% or more above the pivot point. This does not mean that you can’t buy when there are normal corrections and pullbacks, especially if the stock remains in an uptrend. This rule applies to the pivot point area when stocks becomes extended. When going long, if you buy at the pivot point and sell when a stock rises 7-10% above the pivot point, your performance will increase dramatically.
When going long, do not buy until the stock triggers the pivot point on above average volume, which is also known as qualifying volume. The pivot point price will usually be treated as a base by the market with significant action as the bears and bulls fight it out for supremacy. At prices above the pivot point, most of the sellers are gone so this is the point of least resistance as the stock breaks into new higher territory.
A brief explannation of the pivot point can be found at the following websites:
Hopefully this will help you with your trading. Also, make it a rule to never enter a trade before 10:30 AM EDT. Let the bulls and bears sort things out in the early morning to get their footing. The only exception to this might be when the market is in a panic rise or fall, but even then it might be good to wait.
I'll have more on this calculator later.
Is there any good SAFE freeware for such Pivot Point Calculator for Apple Mac's. Thanks.
ReplyDeleteI was pretty lucky in finding this software for free. You'll have to surf the net to see what you can come up with. I haven't tried it, but it is quite possible to make the same calculations using a spreadsheet. Good luck to you.
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