Saturday, November 01, 2008

Setups

Click charts to ENLARGE.

As we've discussed, we have a limited number of choices concerning time preference of money...that is, how we elect to commit (or not)
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  • Volatility expansion (e.g. NR7 - narrowest range of 7 days)
  • Buying pullbacks in trends (long or short)
  • Buying support and selling resistance (beware the market that consolidates at support or resistance)
  • Buying or selling exhaustion plays (DeMark Sequential (tm))
  • Breakouts from consolidation
Plenty of narrowest range of 7 opportunities, but still wide high-low ranges.
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Yahoo (YHOO) is a good example of an NR7, but really such a low price to make it not so interesting.
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If you want to be short (not sure I do before the election)...then you might want a strongly trending stock that has pulled back.
Here's LBTYA, trending south with a pullback (rally)...but it has to trigger a short by price weakness.
_____________________________________________________________Zimmer Holdings (ZMH)...can Zimmer get dimmer? There are a lot of these general types of setups.
_____________________________________________________________Proshares Ultrashort 20 Yr Treasury (TBT)....resistance? This is really the ultimate kind of trade what you see, not what you think.
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Good trading and great risk management to all.

Educational use only. Never intended as investment advice.

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