Technical Stock Market Forecasts for Swing Traders
Wednesday, January 5, 2011
3 down, 2 to go
Today's gratifying 32 point advance in the Dow, along with gains in the S&P and Nasdaq extend our 2011 YTD advance to three days. That leaves just two more days to conclude the "January early warning system" from The Stock Traders Alamanc. If we can finish the week up, that will be bullish for stock for the year. Since 2011 is a pre-presidential election yeat, that is even more bullish. As you can see from today's daily Dow chart, we are still riding the upper edge of the ascending RTC channel.
And as I mentioned yesterday, there is no resistance in sight for what is now another 100 points. Our TTBS (time to bearish setup) is now extended to seven days of sideways action or a dne day drop to 11,624. Failing that, the green swing trend arrow is still up and my long hat is still on.
No trades today, though I note that HIMX, which I dumped two days ago and rose higher yesterday, lost 2.33% today and put in a dark cloud cover. That is a bearish confirmation of yesterday's evening star doji. That's what I get for not waiting for the confirmation. Anyway, watch for HIMX to go lower tomorrow again.
Michele is a swing trader, a night owl, and a student of Japanese candlestick charts. She retired from a large tech company at the age of 50 and has now been trading US stocks and occasionally the e-minis on a full-time basis as an independent trader since 2004.
The Night Owl Trader publishes every trading day late at night (or very early in the morning) around 1 or 2 AM, with occasional bonus commentary and analysis thrown in on weekends.
The Night Owl is independent, ad-free, and made freely available to all. Contact me at nightowltrader (at) gmail.com.
BB - Bollinger Bands COT - Commitment of Traders Report DCB - Dead Cat Bounce MA - Moving Average RTC - Regression Trend Channel YTD - Year To Date
(My lawyer made me do it) This blog is not trading or investment advice, account management or direction. All trades listed here are presented only as examples of the author's personal trading style. Investing entails significant risk and trading entails even greater risks. Act accordingly.