Market Watch for week of July 13, 2009

[bassmaster]

bassmaster july 12/09

"anyways i got this one off a penny stock site. IDGI ---its a temp play, im putting in a buy at support of .015.."

did you end up doing that on friday?
if it goes up to .020 thats 33.33%

it didnt hit my target until 3 days after. never got the buy at the time i wanted. dropped a little more, looks like consolidation from the previous week's run. gonna see how it acts next week.

did a quick scalp on exbx. still got my eye on that one also.

wow. youve learned so much in the past couple of weeks , very impressive. now once you get the hang of these charts and T/A, the skill comes into deciding what price targets you want to enter and exit on the stocks youre watching. that is how the money is made.

[Skivail]

Looks like IFSL has made a nice fan base over at Yazoo.

http://messages.finance.yahoo.com/St...frt=2&off=1#-1

and

http://messages.finance.yahoo.com/St...frt=2&off=1#-1


Ever sat and dreamed of what you would do if one of these retardedly overzealous estimates came true?
If IFSL hit .05 @ my 2mill shares = $100K for me.

I'd keep $20K, get me a new motorcycle, 2010 Ducati 848 or Triumph Thruxton, get some furniture for my room (just moved into new apt after breaking up with girlfriend and have no furniture), and pay some bills.
The remaining $80K I'd split up and put mostly into BEHL and BCLE. I'd leave MGLG at my current 2 mill shares and hold for awhile. I wouldn't pay back any student loans right now.

Anyone else care to dream?

Shots-

What do you think will happen to IFSL? I too have a shit load. The other site seems to think that it's going to take off this coming week. I am just starting to learn how to read charts, so any insight would be nice. If not, I will wait and watch and DREAM.

[billhart22]

Saturday night.

I just watched 3:10 to Yuma. Great movie!

Another like "Silverado".

It is a 3+ bagger of popcorn.

Russell Crowe is a great actor, and an ass, but he was great as usual.

[Dr. Dave]

omg i'm learning a ton on charts its crazy (i can't wait to keep learning)
hmmm looking at ISFL the support level is a piece of cake to draw, and it looks like its an uptrend followed by a hammer=good sign , so just typical scenario if you were to play that would you lets say buy on monday, and sell if it goes below the support,
lets say the support was .0016 on monday, if you saw a trade at .0014 would you automatically sell and wait for a reversal?

Your hooked, here's more koolaid -

Heirchy (sp?)-

1) Support/Resistance in terms of Price (horizontal lines), trend lines, fibonacci's, pivots (floor trader calculations), round numbers, significant candles, classic moving averages, outside price gaps are the first lines of offense/defense.

Make sure you look at multiple timeframes - ie. a trading on the daily scale a trader uses monthly and weekly charts to make decisions, then daily and maybe a smaller time scale like 60 min for entry.


2) Below that we have....
a) Classic chart patterns - so now go suck up the info at http://thepatternsite.com/

b) indicators - these to me are secondary to the other stuff, but some use them with more weight... you of course have been to www.stockcharts.com, so keep going

c) trends - unfortunately, I don't know of a free site for this, but maybe scope out the free videos at www.marketclub.com

d) candlesticks - more for timing - www.americanbulls.com

e) dow theory

Putting it together -
The support and resistance... if you have more than one line in the same place, its more significant... this is how I got the sac to show up at my friends house to dump his siri share at .60 and then tell him to rebuy at .34. Between 0.57 and 0.62 we had long term price S/R going back to 2003, short term price S/R, fibonacci's, a classic chart pattern with a target in that range, the 200 sma, .etc - I can't remember how many there were - but it was something like 6 or more, but they were all basically at the same place... I've never seen it like that before ever - and if you watched the action that day, you could see the shares trade like crazy at each one, and once they hit the top, it rocketed back down to the resistance line at .34.

So..... if you have like 2-3 lines in the same place (which you can see some of the time - I'd love to come across another chart that had 6+ in the same spot), that's a very strong support and resistance level. So the guys/gals trading one will be doing the same thing as the guys/gals doing another... and on top of that price support and resistance has people trading it that do not even use TA in their trading... see - at a big consolidation - you may have a speculators/fundamental traders that pay no attention to this stuff - but tons of shares are traded... but what if the price breaks down?..... well some will say, "I'm selling this piece of crap as soon as I'm even"... so, where are most even????? The consolidation level.

So always look for multiple spots for S/R, and if there is a trend or chart pattern heading that way, there's a better chance of something hitting it or reversing there. If the price punches through - then you are likely headed to the next one.

These are all probabilities... but a lot of people use them, and if they do, they are worth paying attention to.

If you pop off a decent win, buy a couple books - read them, and if you decide later that you aren't into that as your major tool, but rather pouring over 10-K's, etc. Just keep some of it in the back of your head... as... you need an exit point somewhere, because............. ready......

Every stock will only have 1 all-time high (unless you hit that same price twice, but you know what I mean). While books may preach that "if you invested in stocks in 1900, you would have made XXX% over bonds, CD's, etc." that they aren't talking about stocks, they are using indexes which constantly change to include the better performers.

TA 2 cents for the day.

The flip side - now days, more people take TA seriously, it used to be a joke. So now you have to watch out for things- even bukowski did a study showing that classic chart pattern success has decreased some 20% over recent times. There are companies that use software to find the patterns, so they can be busted or faked. Before march, the major indexes dropped out of a large descending triangle, then immediately pulled back up, then after the rally shot down. I took note of that, as did a big time pro, so when the market was sitting in its head and shoulder top these last few weeks, we held off on going short, as that is a well known pattern, and indeed, it faked, and now we are getting a run up to the Nasdaq gap.

I'm rambling.

Anyway - learning a little TA helps your trades
--------

Other important factors for trading are - keeping a journal (which I'm horrible at), money management (I just started working with this), fundamentals, and psychology.

You can spend years learning about this stuff too.

[Dr. Dave]

Dave,

This is something I found for free since I don't have access to Scottrader elite. Its delayed by 15 Minutes but you can still get a good picture of the most actives from most of the markets throughout the day

http://www.hototc.com/activepennystocks.htm

Awesome notwal! Thanks!

You guys are getting me to dig my own hole!

I love it!

[Dr. Dave]

Trade Ideas 3 part video about 23 min long total. I think its worth the watch for anyone who has trade-ideas but doesnt understand it or know how to use it

video 1
http://www.youtube.com/watch?v=kXoSj_G0jD8

video 2
http://www.youtube.com/watch?v=nq4MImjj12Y

video 3
http://www.youtube.com/watch?v=32Iawuj7acQ

Here is a link to all of scottrade's videos, they can help teach some of the other features. I havent watched them all but I have watched some and they are informative
http://www.youtube.com/profile?user=...nc&view=videos

More trade ideas to keep us insane???? hahaha - you know, I have 100 stock chart lists on stockcharts.com - that's all they allow, I constantly have to delete one to add a new one, and it hurts sooo bad.

There's a pretty cool interface for screening for free here too... www.finviz.com

I should make my life easier, and just trade AAPL, we'll AAPL and SIRI, we'll, maybe just AAPL, SIRI and the ships...

It's amazing how financials and the tech have taken off, and the ships are underwater - it really shows where the economy truly is, and also, gives a chance for those who do trade the big boards and who missed the march rally to get a second shot.

[dread]

SQNM should pay off - they had some bad press, but they are real - its a company down the street from me. I got in at $3.29 at one point, but got stopped out after the pop up to $5. Its a biotech, so not completely health care. Once they get their stuff back in order, I'm thinking the price may recover. But, as I've stated, I'm not that great of a speculator.

Thanks, Dr. D!!

Speculation is dangerous, guess I should not be typing out loud here.
I know little of this sector and other related companies. I remember BIEL, and I believe a bunch of traders here took profits!! I will sit on the sidelines and watch and learn, things are very unstable, and its been that way for some time now.
I will stick to what I know, and add SQNM to my watch list, thanks again D!! CLZR might be something you want to look into Dr. D.


OK, another week of earnings coming up, 70% is the S@P, that will affect SRS, so I am going to focus on the earnings, and try and be quick if things turn bad for me.


Getting a little late here lol!!! Spent to much time in the garage, AGAIN!!!

Have a good Sunday everyone!! I am cheering for Watson to win the British Open.
It would be nice to see a dinosaur win.

LATER!!

[Dr. Dave]

Thanks, Dr. D!!

Speculation is dangerous, guess I should not be typing out loud here.
I know little of this sector and other related companies. I remember BIEL, and I believe a bunch of traders here took profits!! I will sit on the sidelines and watch and learn, things are very unstable, and its been that way for some time now.
I will stick to what I know, and add SQNM to my watch list, thanks again D!! CLZR might be something you want to look into Dr. D.


OK, another week of earnings coming up, 70% is the S@P, that will affect SRS, so I am going to focus on the earnings, and try and be quick if things turn bad for me.


Getting a little late here lol!!! Spent to much time in the garage, AGAIN!!!

Have a good Sunday everyone!! I am cheering for Watson to win the British Open.
It would be nice to see a dinosaur win.

LATER!!

I actually have a penny stock, that maybe finally worth looking into too - but I have to head home. I'll give you the full info on what I have. It's a real company, but I'm only looking to cash in on a possible pump (if it happens!). Also, look out with SRS - those leverged funds are for swing trades, not long term - the underlying isn't the only key, it's swaps, options and futures, so a key is to watch the $VIX and IYR.

[dread]

I actually have a penny stock, that maybe finally worth looking into too - but I have to head home. I'll give you the full info on what I have. It's a real company, but I'm only looking to cash in on a possible pump (if it happens!). Also, look out with SRS - those leverged funds are for swing trades, not long term - the underlying isn't the only key, it's swaps, options and futures, so a key is to watch the $VIX and IYR.

Yeah, been watching the VIX to LOL!! I am having a blast with it, so no fear!!!

Thanks for the heads up Dr. D, have a good one!!

[Sean]

i can't sleep, i'm going to go over that post dave thanks
all i can think about is stocks.