Tuesday, 29 March 2011

SPI 5mins breakout- Follow up

Today's plan in the SPI futures worked well and shows the importance of having various scenarios in play when trading the markets:  http://swingtradersedge.blogspot.com/2011/03/asian-monring-setups.html

There are some key takeaways and lessons from today's session:

i) 4740/4745 held in the first hour of trading. Get long at supports with tight stops. This was the low end of the recent 3 day range
ii) When we broke the intraday highs and opening levels above 4755, add to the position
iii) Breakout of triangle pattern- add another contract if possible and look to target the previous highs at 4790. The market closed at 4783 short of my target and sell half the position, carrying the rest into the next session with a nice open profit, move stops to breakeven.

Note that when the moving averages crossed to the upside, a clear trend day ensued with price retesting and holding throughout the day. Following the moving averages alone would have kept you on the right side of the market.

The purpose of going over this is to improve our trading. I tweeted these developments throughout the day and I hope you managed to profit. Learn these setups and make them your own

SPI 5mins Outcome:

US Market Breadth

I often talk about Market breadth and internals which I believe are important tools at certain market junctures. For a good account of recent divergences and how we can use these to trade, please read this:  http://blog.afraidtotrade.com/checking-on-sp500-diverging-breadth-and-current-structure-march-28/

SPI 5mins- breakout in play?

This morning's support levels at 4740 held. I am now seeing a breakout of a potential Triangle pattern on the 5min chart and adding to longs. Target for this play is the previous highs at 4790 in the ensuing days. Short term traders have to be able to hold to the close to capitalise correctly.

SPI 5mins:

Asian Morning Setups

Quick run down of the setups in Asia I am watching today.

The SPI is indicated at 4758. The key support levels to watch are 4740/4745 and look for resistance at 4765/4770. I am following a possible triangle pattern here targeting the previous highs at 4790/4800 but yesterdays lows must hold at 4740 to keep this intact.

US market summary

Morning All,

A late day sell off in the US markets has created a great opportunity to look for buy setups. I highlighted 1295 to 1305 as my key support zone in the June Eminis and we are here right now -please see chart below. I said on the weekend that "breadth was once again rather weak and there was no volume supporting the move which makes me think that we are not on the cusp of a major breakout until some more consolidation ensues". Here is our consolidation. I am looking for a clear reversal candle to get long out of this zone as my entry trigger.