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*****As trades go, we can plan and we can plot but there are days when all our plans from the actions in previous days get tossed. The reason is that there are overnight changes in news and mood that may create gaps which we can clearly not predict. Scrambling to see how to adjust to these is where many get a bit confused especially when "crutches" are used. Crutches are indicators which may go wild with these swings, adding to the confusion.
It is important to keep in mind the overall patterns that such happenings may create. The truth is that chart patterns once observed, practiced and kept in memory do not change their behavior nor do they lie. So below I present an example of how to analyze the chart accordingly, showing what happened today with $AMZN. Amazon after announcing earnings last eve looked good for a breakout but this morning it presented a different face. My PlayList call to my subscribers was for a long position from 335-337-339 and short position from 332-330-328. Those who could trade it from premarket were able to take advantage of the high entry short but those who may have gotten to the table later and/or cannot trade premarket times, had a dilemma: If they entered at open were they chasing the trend or if waiting could they completely miss out.
The chart below shows how to analyze such occurrences and once seen, how one can play them. Patience as always is a major key in trading and this morning proved it once again; when analysis is clear positions are held on much more sure footing and therefore with more confidence. When a trader does not analyze but jumps without waiting for clear vision is when mistakes are made and trades can fail.
The quicker a trader can identify and analyze the trend the more he/she can take advantage. Remembering that, always with any trade, an "if/then" plan must be coolly followed for actualizing a successful trade because luck nor trends will always be a friend.
Happy Trading Living and Dancing
Anni
The Daily Pick - $AMZN
©DayTrading with Anni 2007 - 2013 All Rights Reserved
Life relates to trading and trading relates to life. Constantly revealing, unfolding before us as we trade and live, so I write about how my life relates to trading and how I trade the markets. Along the way I share my opinions on anything that evokes my passion or tickles my funny bone trying not to forget that enjoying life is the best part of living.
Friday, April 25, 2014
Wednesday, April 2, 2014
The Midweek Update - Who's the Leader? $DJIA $SPX $NDX
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***** Depends on which index you like to follow, the patterns on the three indexes differ in ways. Long time listeners know that the charts usually have much in common yet, here today I see a possible strong breakout off the high on the $DJIA, a flat top on the $SPX and a possible stall on the $NDX . It's unusual to have such differences. Since April Fool's Day is over, perhaps it's due to the unknown, namely the coming of the 1st quarter reports. World jitters seem to have subsided but no matter which course the markets take, one of these charts foretell what is to come and will show its leadership.
Happy Trading, Living and Dancing
Anni
Weekly Update $DJIA $SPX $NDX
©DayTrading with Anni 2007 - 2014 All Rights Reserved
Happy Trading, Living and Dancing
Anni
Weekly Update $DJIA $SPX $NDX
©DayTrading with Anni 2007 - 2014 All Rights Reserved
Thursday, March 27, 2014
The Market Outlook Update - Putin, Ukraine and EU Concerns
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*****I'm an optimist except where Putin is concerned, but I've been saying that for years, so now what? Listen to me or listen to others the idea that peace comes through disarmament creates an illusion that has been driven into us for decades by the very people who would use their arms to attack.
Think of it this way. To say that by cutting off your arms you will be able to defend your home, is not only foolish it's dangerous. To say that by extending nothing but appeasement to the thieves, rapists and murderers of your community will not keep you safe. The EU needs to learn to defend itself against those who wish to kidnap its interest to ransom because that is exactly what Putin will do with the gas and oil pipelines it means to control. He's had them in his sight since the disgrace of losing not only the Cold War but equally importantly the pipeline war to Reagan. Again, history helps here to understand what is to come. The pipelines wars have not stopped, only got cloaked in peaceful agreements née appeasements; but make no mistake control of the pipelines from the middle east will make all the difference to the EU and the US. Putin knows this and has had them his grand plan to restore Russia's glory and will have them in total control sooner now that the EU and USA does nothing about Ukraine.
While the world forgets and our governments decide to ignore the Budapest Agreement of 1994 Putin watches with interest how the West once more can be taken advantage of just like with the Yalta (Crimea) and Potsdam Conferences of 1945 where the same three powers agreed on restoration of European countries. History knows how that agreement was honored by the Russians with millions persecuted and dead on the Central and Eastern side of Europe.
Those who think this has nothing to do with the markets and trading I can only ask to think ahead. The future of the USA and how it can conduct business is very much in play with these events. How the US government handles Putin's aggression will not only foretell our future strength, but also the future markets. Our ability to produce and sell will be effected. Consider that the EU may become less and less able to protect itself from Eastern aggression. Will we be able to step up the will to honor our agreements? Bigger question still, will we be able to protect ourselves? I'm not for fighting wars but I'm definitely in the camp of preventing them from strength.
There is no good news. I've been waiting to write this article for quite some time, but my optimism prevented my intuition to speak. We are now beginning to experience what it is to be in a weak position. What I see now is becoming possible only because of the mentality that all things "good" mean that it has to come from "peace at all costs". In other words, the disarmament symbol hijacked to become a peace symbol is costing us. It's costing us not only our strength but also our freedoms, but most of all our belief in our ability to be the beacon of light of which Reagan spoke in his farewell address. Will Poland be next after the Ukraine, once again?
I'll still remain an optimist but (hopefully) not a fool.
Happy Trading, Living and Dancing
Anni
The Weekly Outlook Update 26Mar14 - $DJIA $SPX $NDX
©DayTrading with Anni 2007 - 2014 All Rights Reserved
Think of it this way. To say that by cutting off your arms you will be able to defend your home, is not only foolish it's dangerous. To say that by extending nothing but appeasement to the thieves, rapists and murderers of your community will not keep you safe. The EU needs to learn to defend itself against those who wish to kidnap its interest to ransom because that is exactly what Putin will do with the gas and oil pipelines it means to control. He's had them in his sight since the disgrace of losing not only the Cold War but equally importantly the pipeline war to Reagan. Again, history helps here to understand what is to come. The pipelines wars have not stopped, only got cloaked in peaceful agreements née appeasements; but make no mistake control of the pipelines from the middle east will make all the difference to the EU and the US. Putin knows this and has had them his grand plan to restore Russia's glory and will have them in total control sooner now that the EU and USA does nothing about Ukraine.
While the world forgets and our governments decide to ignore the Budapest Agreement of 1994 Putin watches with interest how the West once more can be taken advantage of just like with the Yalta (Crimea) and Potsdam Conferences of 1945 where the same three powers agreed on restoration of European countries. History knows how that agreement was honored by the Russians with millions persecuted and dead on the Central and Eastern side of Europe.
Those who think this has nothing to do with the markets and trading I can only ask to think ahead. The future of the USA and how it can conduct business is very much in play with these events. How the US government handles Putin's aggression will not only foretell our future strength, but also the future markets. Our ability to produce and sell will be effected. Consider that the EU may become less and less able to protect itself from Eastern aggression. Will we be able to step up the will to honor our agreements? Bigger question still, will we be able to protect ourselves? I'm not for fighting wars but I'm definitely in the camp of preventing them from strength.
There is no good news. I've been waiting to write this article for quite some time, but my optimism prevented my intuition to speak. We are now beginning to experience what it is to be in a weak position. What I see now is becoming possible only because of the mentality that all things "good" mean that it has to come from "peace at all costs". In other words, the disarmament symbol hijacked to become a peace symbol is costing us. It's costing us not only our strength but also our freedoms, but most of all our belief in our ability to be the beacon of light of which Reagan spoke in his farewell address. Will Poland be next after the Ukraine, once again?
I'll still remain an optimist but (hopefully) not a fool.
Happy Trading, Living and Dancing
Anni
The Weekly Outlook Update 26Mar14 - $DJIA $SPX $NDX
©DayTrading with Anni 2007 - 2014 All Rights Reserved
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