Stock Triggers Recap from August 31, 2010

Here is a recap of the stock triggers from the Tradesight Stock Report and Real-Time Messenger for Tuesday, August 31, 2010. This includes all triggers.
Off of the report, SPRD worked nice:
SPRD
SNDK short worked:
SNDK
ASIA worked but triggered right out of the gate:
ASIA
CSTR went enough for a partial:
CSTR
In the Messenger, GS gave me a small winner, but finally gave up on it:
GS
COST went enough for a partial, that's it:
COST
Mark's BRCM worked:
BRCM
Rich's V worked:
V
GOOG didn't work:
GOOG
Overall, a very nice day to close out August.


ES Classic Futures Calls with Value Area, Pivot, and Gap Fill...

It's been a slow week or two in the markets with volume on the light side and afternoon activity much flatter than normal. That doesn't mean any one day can't give you a surprise, and fortunately, Mark Likos spotted a classic ES setup today and called it for our subscribers.
The market gapped down in the morning and was mostly flat over lunch. It rallied up after lunch to fill the gap, hitting the Pivot (dark blue line); INSERT INTO `wp_posts` (`ID`, `post_author`, `post_date`, `post_date_gmt`, `post_content`, `post_title`, `post_category`, `post_excerpt`, `post_status`, `comment_status`, `ping_status`, `post_password`, `post_name`, `to_ping`, `pinged`, `post_modified`, `post_modified_gmt`, `post_content_filtered`, `post_parent`, `guid`, `menu_order`, `post_type`, `post_mime_type`, `comment_count`) VALUES which was just above and inside of our Value Area Low:
ES 1
What does this set up for us? When a market fills a gap, it is the resolution of a necessary technical move (80% of gaps fill the same day). When they stall out at the Pivot, they are identifying that level (the "Balance of Play" from the prior session) as important. Those two items basically set a very specific wall and complete the energy move of the gap fill. This means that the market is now free to head either direction, but in this case, a move to new highs gives you a break above the Pivot now that the gap is filled, and it gives an entry into the open part of the Value Area. So, Mark called the long above that level, and the move worked perfectly to the other light blue line, which marks the high of the Value Area:
ES 2
These are the types of high-probability setups that we like to keep our subscribers focused on, even though they haven't been happening as much in August. Don't forget, wait for the market to do what you need, because it isn't going to move how you want. Clean setup, one of the best of the week, and thus, a clean winner.


Market Outlook for August 24, 2010

The SP lost 4 on the day, making a new low close on the move. Price is now below and moving away from the 50 and 200 daily moving averages. The recent MACD sell signal has been validated by the close under the zero line. 1061 is a Fibonacci level and also prior support. Treat this level as a pivot under which the momentum could accelerate.
S&P
Naz also made a new low close on the move. 1800 is near term support with 1750 next. Fibs have been added to the chart. Note that the MACD has closed below the zero line.
NASDAQ
The multi sector daily chart shows the relative weakness in the SOX.
Multi-sector Chart
The OSX was the best sector posting a small range inside day.
OSX
The BKX closed right at the lower edge of the trading range. This is the lowest close since February.
Banks
The BTK closed just above the key 50 and 200dmas. Look to this index for leadership if the market turns higher from here.
Biotechs
The SOX is gaming the lower boundary of the trading range. The leading index was weaker than both the broad market and Naz on the session.
Semis
Oil continues to slowly breakdown.
Oil
Gold continues to show good relative strength during a seasonally weak time of year.
This is the chart to watch. Until the SOX shakes off its relative weakness, selling rallies in stocks will be easier than buying the dips.


August 16 Futures and Stock Call Review: How to Make Money in a Light Volume Day

We had a nice winner today in our top long stock idea off of the report, ATHN:
ATHN
But, that really doesn't tell the whole tale of how Tradesight helps you make money based on the market environment. Click on this link to get a presentation review of today's trading. Just press the Play button on that screen. The presentation is about ten minutes and walks you through how our Stock and Futures services can help you make money.