Thursday, November 30, 2006
Super Divergence Blueprint @Profits Run presents:
S&P500
Cash Video - did you avoid this drop?
Did you see what the S&P 500 Cash market did this week? After
a nonstop bullish run since mid-July, it fell on 11/27, Monday.
Now, many traders may not have seen this coming. However, select traders that
understand how to identify "divergences" in the market could have
either closed out their long positions or entered into a short position right
before this happened.
If you're not familiar with divergence trading, you need to be. It
doesn't happen often, but when it does, it's like discovering hidden trading
opportunities, because most traders just flat out don't use this method.
Check out this short video that shows you how a step-by-step
divergence method predicted this drop in the S&P 500 Cash market before it
happened:
- How SDB predicted the drop on the S&P 500
P.S. - Most trading courses don't teach divergence trading... so when you learn
a good divergence trading method, you can add it to just about any
trend-following course or method you're currently using... Or, you can just
trade divergences on their own. It's like having another tool in your trading
"toolkit". Enjoy this video and learn how to add divergence trading
to YOUR toolkit today. " Super Divergence Blueprint FREE Video...
P.P.S. - Ultimate Trading Machine - In just a few seconds you can download a
professionally produced video you simply must see, that will not
only change the way you trade, but also the approach you take to your trading,
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to learn if the Ultimate Trading Machine is available on the market once
more.
Potentially profitable Short-Term Trading
Ideas
Long candidates:
Microsoft (Nasdaq: MSFT, $29.89) -- Although MSFT shares have
been in a prolonged trading range for several years, the stock has recently
broken out above $28, a price point that had held it back since the early
summer of 2005. Old resistance should now be new support. MSFT has created a
base of $6, which projects a target in the low $30's. Objective is $32.95. Exit
the trade if the stock drops below a shelf of lateral support at $28.00 and
hits $27.89.
Short Candidates:
Ruby Tuesday (NYSE: RI, $27.51) -- Ruby Tuesday operates a chain of casual dining
restaurants. The shares have since broken support just below $28, where they
had previously held three times since September. That broken support level
should now provide resistance. RI has also broken trendlines in both price and
relative strength. Daily ADX is on a sell signal, and relative strength remains
weak. Target is $25.05. Cover the short at $30.11.
Trading Ideas &
Picks
Swing
Trade of the Week
ONXX: Stock surged past the support area of a trading range then traded
at the lower end of the bearish colored candle, representing a consolidation
and possible setup for further downside. Look to go short at 17.23...
Trading
Ideas - Read More
Trading Ideas &
Picks
Getty Images Inc - GYI - Testing the
resistance of a descending trendline
GYI:
is currently in the process of testing the resistance of a descending
trendline. The chart is a good example of how a trendline can act as a strong
barrier that prevents the price of an asset from moving higher...
Trading
Picks - Read More
Trading Education
Tutorial
Measured and Exhaustion Gaps
Identifiable Patterns After Confirmation Move
We have previously mentioned the three types of gaps that are of relevance to
investors - the breakaway gap, the measured (or continuation) gap, and the
exhaustion gap. We previously discussed the breakaway gap, but it is important
to discuss the measured gap and exhaustion gap at the same time. Why? Because
it is difficult to tell one from the other until after the fact.
Read More...
NASDAQ Chart of the Day
NVTL
has formed a clear inverted head-and-shoulders pattern, which indicates a likely
reversal is on the horizon. Watch for a break through 9.80 for signs of big
strength.
Daily Trading Signals
NYSE Chart of the Day
ATG
is breaking out of a large triangle range at 38.25, which indicates a bullish
interest in this stock. Watch for continued strength out of this range toward a
target of about 43.00.
Daily Trading Signals
Daily Market Commentary
Updated Wednesday, 11/29 for Thursday's market.
|
Key DOW Levels for 11/30
|
|
P
|
Above 12,250
|
|
DN
|
Below 12,150
|
Upside Break...
- Dow breaks consolidation to upside, rallies for solid gains. The
index reversed from the afternoon lows and rallied to a solid 90 point gain.
- The NASDAQ and S&P each each pushed higher today, but the tech-heavy
index clearly lagged the broader market. Each index has formed a higher low
within the current buying spree from yesterday's lows, which indicates
continued strength.
Summary
The Dow closed the day with a solid gain after breaking through and holding
above the key 12,150 fulcrum. Continued near-term strength should be seen above
this level, unless a violation occurs.
Read More...
