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ShadowTraderPro Swing Trader 02.24.12 $RUT $NDX #stocks #trading
ShadowTrader Swing Trader |
2/23/2012 10:08:59 PM
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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 firstname.lastname@example.org.
Good morning traders. Of the four major U.S. stock indices, the most technically compelling chart for a near term bullish trade is the Russell 2000 Index (RUT). Let's take a look at the weekly chart below.
Unlike the S&P 500 index (SPY) or the Dow Jones Industrial Average Index (DIA) which are exhibiting less reliable behavior at prior high resistance, the RUT actually offers a tradable long entry point just over consolidation formed during the last three weeks (magenta lines). The index has approximately 4.20% left to the upside until reaching prior highs (blue line, 868.57).
The NASDAQ 100 may be tempting to some given its current momentum and consolidation over the past four days, however, the weekly chart below illustrates how the index has stretched higher each of the last eight weeks and will end this week with less volume. Caution should be exercised here.
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 Average||12984.69|| 46.02|| 0.36% |
|S&P 500 Index||1363.46|| 5.80|| 0.43% |
|Nasdaq Composite||2956.98|| 23.81|| 0.81% |
|Nasdaq 100||2594.93|| 15.15|| 0.59% |
|Russell 2000||829.23|| 12.73|| 1.56% |
|Spot Gold||1777.80|| 3.20|| 0.18% |
|Crude Oil||108.54|| 2.63|| 2.48% |
|NYSE Overall Volume||7,628,960K||n/a|| 4.64%|
|Nasdaq Overall Volume||1,734,651K||n/a|| 2.62%|
|NYSE Breadth||2.36 : 1||positive|
|Nasdaq Breadth||2.65 : 1||positive|
|NYSE Breadth Ratio||70.24|
|Nasdaq Breadth Ratio||72.62|
|$VIX||16.8|| -1.39 |
| Market Profile and Pivot Points for ES and NQ for Friday || || |
| How to put value areas and breadth bubbles on your charts - click here ||ES ||NQ |
| Value Area High ||1363.00 ||2597.75 |
| Point of Control ||1359.25 ||2596.00 |
| Value Area Low ||1355.75 ||2584.00 |
Due to technical updates, Prodigio RTS pivot points are not pictured today. Prodigio pivot points will return very soon.
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.
ShadowTrader Sector breadth reversed back to the bullish side Thursday. 22 sectors closed higher while just 3 ended lower. The only notable statistic among the twenty five sectors is five consecutive higher closes by OSX.
Up and coming economic and corporate data that may move markets this week: Today - 02/24/2012
Monday - 02/27/2012
09:55 am EST - Consumer Sentiment
10:00 am EST - New Home Sales
Reporting earnings today: ANR,
Tuesday - 02/28/2012
10:00 am EST - Pending Home Sales Index
10:30 am EST - Dallas Fed Mfg Survey
Reporting earnings today: ANV,
08:30 am EST - Durable Goods Orders
09:00 am EST - S&P Case-Shiller HPI
10:00 am EST - Consumer Confidence
Reporting earnings today: BMO,
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.
| Symbol ||Trigger Price ||Stop Price ||Notes |
|BEAV ||46.85 ||45.10 ||Stock in consolidation phase, looking for breakout |
|LH ||86.40-85.90 ||84.30 ||Please see the
ShadowTrader Weekend Update |
|ATI ||42.70-42.30 ||40.90 ||Potential triple bottom |
| Symbol ||Trigger Price ||Stop Price ||Notes|
|HAR ||53.00-54.00 ||55.75 ||Please see Tuesday's
ShadowTraderPro Swing Trader |
|INTC ||28.00-29.00 ||29.75 ||Short play entry at multi year highs |
|EMN ||55.21-55.51 ||56.75 ||Approaching 52 week highs |
ShadowTrader Model Portfolio
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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.
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