Hello,
Welcome to
Stock
Market Trading
the new look newsletter for
2011 from Traders
Day
Trading & Kenny's
Elliott Waves Blog.
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S&P 500 Cash Index - The
Week Ahead
The
Week That Was...
Last week gave us the short term dip
that we were looking for but spent the entire week confined in a very
tight range and only managed to break lower on Friday. Coincidence that
the entire weeks range centered on the middle of my 1330-3 target area?
Last
week closed right in the
1330-3 target zone so I want to be short from around here somewhere to
1320, 1312 or 1305 before another long trade kicks in.
My estimated high for the week at 1340 was absolutely spot on but the
move down was very limited, falling well short of the target at
1312. In fact it did not even manage to print the estimated minimum at
1320 and instead, bounced off the lower rising channel trend line.
Fridays price action did however, produce a bearish engulfing candle
for the S&P 500 index.
The
Week Ahead...
The dilemma for this week is whether to go long with the shorter term
timing studies that was looking for a low centered on Thursday, or to
go short with the markets failure to break through the resistance and
Fridays bearish engulfing candle....
Reaching the 1330-3 target confirmed a medium term delta low and in all
probabilities, a long term low too. The next long term delta high is
due in early June so is of little help to us here now as we have
already done the minimum at 1330-3, and the margin of error in time at
that degree means that it is now in the zone if it is going to come in
early.
Fwiw, I would expect it to come in early but that does not mean that
this is it here.
|
| Pivots |
Monday |
Weekly |
Monthly |
| R3 |
1363.23
|
1363.23 |
1468.84 |
| R2 |
1346.71 |
1346.71 |
1385.61 |
| R1 |
1337.44 |
1337.44 |
1355.72 |
| Pivot |
1330.19 |
1330.19 |
1302.38 |
| S1 |
1320.92 |
1320.92 |
1272.49 |
| S2 |
1313.67 |
1313.67 |
1219.15 |
| S3 |
1297.15 |
1297.15 |
1135.92 |
| Current |
Week |
Month
 |
Year
 |
| Open |
0 |
1329.48 |
1257.64 |
| High |
0 |
1339.46 |
1344.07 |
| Low |
0 |
1322.94 |
1249.05 |
| Range |
0 |
16.52
|
95.02 |
| Previous |
Day
|
Week
|
Month
|
Year
|
| Open |
1336.16
|
1333.56 |
1328.64 |
1116.56 |
| High |
1339.46 |
1339.46 |
1332.28 |
1219.8 |
| Low |
1322.94 |
1322.94 |
1249.05 |
1011.40 |
| Close |
1328.17 |
1328.17 |
1325.82 |
1258.84 |
| Range |
16.52 |
16.52 |
83.23
|
208.4 |
Key
Support and Resistance Levels
|
1381 |
|
1370 |
|
1360 |
|
1353 |
|
1344 |
|
1340 |
| High? |
1334 |
| Current |
1328
|
|
1326 |
|
1322
|
|
1312
|
| Low? |
1310 |
|
1305 |
|
1303
|
|
1298 |
|
1293 |
|
1288 |
|
1273 |
|
1268 |
|
1257 |
|
1249
|
|
1225 |
Bold
Numbers = Stronger Support and Resistance
Trade Set
Ups for the Week Ahead
Last week Sell swing trade failed to meet its target at 1312 but closed
at 1328 giving us 6 points for the week. The long trade entry did not
get filled.
Ideally, I want see the market hit last weeks target at 1312 pre-market
or early in Tuesdays trading, and then get short again from a lower
high late in the
week. Alternatively, if instead the market follows through the bounce
off
Fridays low and continues on up from here, I will want to get short
from a higher high.
******
NOTE:
For this format I am using a 10 point stop loss on the weekly trade set
up and 3 points on the day trade set up, unless otherwise indicated.
It
is important to remember that technical analysis does not tell us what
will happen, it is about the odds and probabilities of what to expect
to happen given a certain set of circumstances. As circumstances change
so must expectations, and trading plans must be adapted to fit those
new circumstances.
******
Kennys Stock Market Trade for the
Week 1
| Market |
Trade |
Open |
Target |
| S&P
500 Cash Index |
Buy |
1308 |
1328 |
*Entry Valid Until Tuesday
Kennys Stock Market Trade for the
Week 2
| Market |
Trade |
Open |
Target |
| S&P
500 Cash Index |
sell |
1332 |
1298 |
*Entry Valid From Late Wednesday
Thank you for subscribing to Stock
Market Trading, please do us a big favor an send it to a
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Kenny
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