We all love a clear day. No matter what vehicle we use for transportation, clear days are easy going or as the song goes "On a Clear Day You Can See Forever" and we certainly have been yearning for clear days for at least the past month. Since the new year however, the way the markets have been acting, it seems we're flying high and seeing that forever. But what happens when the weather changes; when the fog settles in, the storm gathers?
While the sun shines, we can see clearly, but when clouds gather, or fog sets it, things get obscure. Although we always keep an eye on our instruments, it is when we fly into blind conditions that we are reminded how important those tiny gauges are in our cockpit. Those gauges, or what traders call the indicators, are our life savers and their accurate reading becomes crucial for a safe landing.
As it is important for a pilot to learn how to fly using IFR (instrument Flight Rules) under certain conditions, it is equally important for a trader to be able to rely on indicators for safe navigation of a trade. No matter which indicators are your favorites, do keep your eye honed so on days when market directions are not so clear, all those hours of study become worthwhile and you can still make it an enjoyable flight.
Happy Trading, Living and Flying
The Play List:
$FSLR Long above $138 to near $140 then to near $142.50. Needs to break above 143.50 for a significant higher move toward $147-$149 to fill the gap. Short below $137 to $136 braking $135 means revisit to $134 area with possibility below to near $132
$FWLT was a intra-day pick on Tuesday morning for Long at $31.10 with target of $32.50 and 2nd target of $33.50 area. We'll continue the trade with the long target of $33.50-$34 area. Short below $31 to near $30 and $29 levels.
$AAPL, $BIDU, $POT continued from the Play List on Monday. Adjust to further targets.
$AAPL no adjustment for open
$BIDU BIDU_2010-01-06_0318 Long above $408 to near $410 breaking above $410.70 to near $412-$414 then higher to $417. Short below $405 to $404-$403 area breaking lower to $400 $398 areas.
$POT POT_2010-01-06_0345 long above $118.50 to $119-$120 needs to break through for further highs above $120 to $122-$124 areas. Short below $117 to $116.50-$116 then $115.50-$115 area.