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ShadowTraderPro Swing Trader 06.09.11
ShadowTraderPro Swing Trader for June 9, 2011

The ShadowTraderPro Swing Trader is your every morning dose of market reality brought to you from the resident geniuses at ShadowTrader. Each issue contains a full report on the prior day's action, including market internals, technicals, and what sectors were hot and cold. Each issue also includes the ShadowTraderPro Model Portfolio, which updates members on what stock plays STPro is currently engaged in officially, as well as provide a daily list of long and short setups for more self-directed traders and investors.

To get the most out of your subscription, please read our Swing Trader User's Guide

If you have any questions or comments regarding commentary or plays in this newsletter, please email to swingtrader@shadowtrader.net.

Looking Ahead

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Good morning, traders. While waiting for the S&P 500 Index (SPX) to work down to 1250.00, we are busy reviewing weekly charts and making a list of stocks that we would like to be long of when the market turns back higher.

Let's review the chart of Apple, Inc. (AAPL) which is at the top of our list of long play candidates.


A green oval encompasses prior consolidation that took place just under the 320.00 level and the green arrow points to the most recent low after the 320.00 level changed from resistance to support. When the stock touches 320.00, we plan to hit it with a long entry.

The current daily average true range of AAPL is 5.59. Based on this, from yesterday's close, the stock could reach 320.00 in as little as three days.

Under The Hood

When we say "under the hood" we mean market internals, ie: what was really happening behind the scenes. ShadowTraders who listen to our daily broadcast every day live on the thinkorswim platform know that all closing figures on the major averages should only be interpreted in the context of market internals. Look for convergences and divergences in the breadth, a/d line, and trin figures below to either confirm or cast doubt on what all those talking heads on TV are telling you.

Dow Jones Industrial Average12048.94-21.87-0.18%
S&P 500 Index1279.56-5.38-0.42%
Nasdaq Composite2675.38-26.18-0.97%
Nasdaq 1002252.89-16.07-0.71%
Russell 2000788.04-9.51-1.19%
Spot Gold1536.20-7.50-0.49%
Crude Oil101.06 1.88 1.90%
NYSE Overall Volume10,125,900Kn/a 8.34%
Nasdaq Overall Volume2,094,887Kn/a 12.95%
NYSE Breadth3.13 : 1Negative
Nasdaq Breadth5.42 : 1Negative
NYSE Breadth Ratio24.23
Nasdaq Breadth Ratio15.57
NYSE Advancers/Decliners-1434
Nasdaq Advancers/Decliners-1240
NYSE Trin1.11
Nasdaq Trin1.94
$VIX18.79 0.72

Market Profile and ES Pivot Points for Thursday
Value Area High 1285.00
Point of Control 1282.75
Value Area Low 1279.75
R3 1293.83
R2 1290.17
R1 1283.58
Pivot 1279.92
S1 1273.33
S2 1269.67
S3 1263.08


Pivot points provided by Prodigio RTS. For more information contact: prodigio@thinkorswim.com

ShadowTrader Sector Trend Scores

The ShadowTrader Sector Trend Score matrix is a proprietary method of assigning values to twenty five sectors that are a representative cross-section of the market as a whole. The heat map in the trend score column defines the current strength or weakness of that sector using a proprietary weighting formula. Sectors bolded in green and red are the two sectors that experienced the largest absolute gain and loss in trend score over the prior day. We strongly urge subscribers to read the full explanation of the meaning and calculation of the trend scores in the Swing Trader User's Guide.



Broad market breadth continued it's ugly ways yesterday. 20 of the 25 ShadowTrader Sector Trend Scores moved lower. We expect more of the same in forthcoming days until the broad market finds price support.

Heads Up

Up and coming economic and corporate data that may move markets this week:

Today - 06/09/2011
07:00 am EST - BOE Announcement
07:45 am EST - ECB Announcement
08:30 am EST - International Trade
08:30 am EST - Jobless Claims
10:00 am EST - EIA Natural Gas Report
Reporting earnings today: NSM, RLD, SJM

Friday - 06/10/2011
08:30 am EST - Import and Export Prices
02:00 pm EST - Treasury Budget
Reporting earnings today: There are no stocks worth $20 or more trading at a volume
greater than 500k.

Monday - 06/13/2011
No economic news currently scheduled.
Reporting earnings today: KR

Bulls and Bears

This section is for self-directed traders and investors who like to "do it themselves". Every trading day, Bulls and Bears will list long and short equity setups with defined entries and stops. Note: A listing in this section does NOT necessarily mean that the stock will end up as a part of the ShadowTraderPro Model Portfolio. Plays listed here change daily and are not managed or tracked by ShadowTrader unless traded via MyTrade posting.

Long Ideas
 Symbol Trigger Price Stop Price Notes
None
Short Ideas
 Symbol Trigger Price Stop Price Notes
None

ShadowTrader Model Portfolio

The matrix below shows all current ShadowTrader Pro plays in the Model Portfolio. The Model Portfolio contains only those plays that are sent out in real-time via posting to MyTrade or text message to your phone. Bulls and Bears plays above are not actively managed or tracked. Current open positions are on top, with positions that were closed in the current calendar week on the bottom. Closed positions are moved out of the matrix on Monday mornings and posted in our performance page here.

To get the most out of your subscription and for detailed instructions on how to structure your own portfolio, read our Swing Trader User's Guide

 OPEN POSITIONS - week of 06/05/11 - 06/11/11
sym dir size date
entered
entry
price
date
closed
exit
price
target stop status mark
to
market
p&l
points
p&l
capital
capital
commit
GLDlong 12505/23148.82 n/a n/a 163.00148.50 open 149.810.99$124$18,603
  Closed above short term ascending trendline
 CLOSED POSITIONS week of 06/05/11 - 06/11/11
BIDUlong 5006/03138.4306/07132156.00131.20closed n/a(6.43)($322)$6,922
  Cut trade on break of prior lows
 TOTALS: 75 open shares (open capital committed doesn't include closed trades) $11,063

Click here for year to date Model Portfolio Performance - 2011

Click here for Model Portfolio Performance - 2010

Click here for Model Portfolio Performance - 2009

Click here for Model Portfolio Performance - 2008
All content ? 2011 by ShadowTrader Technologies, LLC. All rights reserved.

Disclaimer and Waiver of Claims: Disclaimer and Waiver of Claims: The ShadowTraderPro Swing Trader is a newsletter service, designed as supplemental material for the ShadowTraderPro Newsletter subscription service and it is not intended to be a stand alone newsletter. The risk of loss in the trading of any securities products can be substantial. The strategies mentioned here are active trading strategies, therefore you should carefully consider whether such trading is suitable for you in light of your personal investment objectives and financial resources. This material is for information purposes only and should not be construed as an offer or solicitation of an offer to buy or sell any securities. Past performance of any trades mentioned never guarantees future results.

Securities and options involve risk and are not suitable for all investors. See the characteristics and risks of standardized options.

ShadowTrader Swing Trader | 6/8/2011 10:43:29 PM | 0 Comments