Trader MD

Here's LDK. The only day trade today and the first one in a while.



Now for some general market thoughts. The market has to be in a pretty sad state right now, or at least the bulls have to be. Despite the positive news behind Fannie Mae and Freddie Mac released on Sunday by the PPT (Plunge Protection Team), they were still unable to put together a sustainable rally... even for a day.

This goes along with what I posted last Thursday, in regards to the better than expected jobs report. If the market was really as oversold as the charts make them look, they would be hungry to rally on any type of good or bad news possible. That clearly isn't the case.

What I'll be focusing on this week and going forward is looking at some of the key economic reports and earnings coming out. In order to even begin to get bullish, I want to see a good reaction to a bad report.

And just some food for thought: The $VIX is creeping up... sure... but who's to say it's not creeping up for a break out? It'll be interesting to see how the $VIX reacts in between the 30-37.50 levels, especially compared to the markets. If the $VIX starts knocking on the 37.50 area and the market is still continuing to slide, the $VIX could very well break out.

Look for signs and evidence of a rally before you put your hard earned capital to work. I made my mistake and quickly learned from it last week when I tried to trade AAPL / BRCM to the upside.

Posted by Trader M.D. at 7:19 PM 0 comments

Labels: CupnHandle, Fibonacci, Index, LDK

Sorry about the smaller, more crowded images. I'm on the laptop today, and until my internet connection is setup later this week. Thank God for WiFi, eh?

Here's the daily chart of CLF. Looks like a beauty if you ask me. CLF has had this well formed rising channel for the last few months from which it has gotten support from over the past 2-3 days.

In addition, it's been forming a symmetrical triangle with in that channel.

I think it can hit $120-123 over the near term with cooperation from the market & steel stocks.


Before the market opened, US Steel (X) was added to Goldman Sach's conviction buy list. With that news the steel sector gapped up.

Here's the CLF daily chart. It's a bit messy, but I tried to point out as much as I could and I removed any indicators that weren't useful in the trade decision process.



One of the reasons this trade worked out so well was the confluence of supporting factors: support on the daily chart, momentum in the sector, strong volume and a solid opening range bar. It also based below the down trendline of the symmetrical triangle, opening range high, and the R1 pivot point.

That all made for a very low risk trade.

The only other trade of the day was in X, which based under 190. I bought the break and was stopped out below 191.

Posted by Trader M.D. at 12:21 PM 0 comments

Labels: BasenBreak, CLF, Fibonacci, Pivots, Triangle

I've finally got my blogger up and going. There still are some kinks I need to work out, but in the mean time I've been able to annotate and post Friday's trades.

I've done most of the commenting on the actual images and they can all be clicked on & enlarged.














Keep RIMM on your watch list as its in the process of breaking out of the C&H highlighted on it's daily chart above.

Be sure to check back in later this weekend for an index recap & stocks setting up for the next week.

Posted by Trader M.D. at 4:24 PM 0 comments

Labels: BasenBreak, Fibonacci, Gapper, MON, Pivots, RIMM, SINA, Triangle