Wednesday, May 14, 2008

KSU - Bullish Flag / Swing Trade & Nasdaq 100 Update

This is the KSU Swing trade I closed out today. I added it just yesterday.



Here's a look at my $NDX100 chart after today's action. Notice how it looks very similar to the JASO chart I posted below (They both recently broke their up trendlines, only to back test them today).

The purple lines are a channel that the $NDX has been trading in since the Bear Stearns low of March 17th.



The highlighted areas on the chart correspond to the ~48.80 & 47.90-48.00 levels on the Q's.

In comparison to where they are in their channels, the $NDX has been the strongest index.

In comparison to where they are on the daily charts, the $TRAN (transports) has been the strongest index.

The IWM is the weakest index in both respects.

As I mentioned in today's trade recaps, today's late day sell off on increasing volume is a reason to be more defensive. I doubt I add any new swing positions until after the dust has settled and given us a clearer picture.

We also have options expiration approaching on Friday.

Today's midday put/call ratio was ~0.76 (far too many people were on the bullish side of the boat).

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