Online Trading – Page 17 – Best Online Trades

This is one Sick Market

February 7, 2012June 4, 2010 by Tom

This market is sick. There is absolutely zero doubt about that after today’s price action. Not only is it sick but it is extremely costly! Especially during the last 7 or so trading days. I have flip flopped my calls about where this market is going repeatedly for the last couple of weeks and it … Read more

SPY does a Bullish Spring of the May 6 2010 Mini Crash Swing Low

February 7, 2012May 25, 2010 by Tom

The SPDR S&P 500 ETF today accomplished a bullish spring of the May 6, 2010 mini crash swing low during the last 2 hours of trading today. A bullish spring is when volume is not sufficiently heavy enough relative to previous swings and closing price is above those previous swings.

It was a close call today because the way the market was set up (including macd histogram, RSI and some other indicators) it really needed to get a good reversal going again otherwise it would have put the market at risk of a very severe plunge below May 6, 2010 support. It just goes to show how the market is capable of putting everything on the line with only a few hours left to finally give the reversal signal. The action today had the flavor of capitulation and leaves me much more confident that a true reversal is at hand. How high the bounce is remains an open question however.

Also helping the bounce case is the US Dollar Index. It looks like it double topped today on the daily chart and should get some type of move back down to its own 50 day moving average. Perhaps that will support equities for the next 5 to 10 trading days.

I just went long the United States Oil Fund LP ETF USO

February 7, 2012May 24, 2010 by Tom

Going long the United States Oil Fund LP (ETF) USO or the ProShares Trust ProShares Ultra DJ-UBS Crude Oil UCO ETF may be one of the most attractive trades I have seen in a long time. It looks like it is an outstanding contrary type trade. I already mentioned that I am expecting a bounce … Read more

We should get a good one to two week bounce from here

February 7, 2012May 22, 2010 by Tom

In hindsight I was much too bearish at on May 20, 2010. The market had already come down very hard and was approaching a retest of the May, 6 2010 mini crash low. The relative strength index was already at 30. I was too emotional and too bearish. I was giving a lot of credit … Read more

1987 was just not meant to be

February 7, 2012May 21, 2010 by Tom

The market turned around today and the mega plunge was just not to be. In the AM I was looking for a gap and go type move that would lose all price support. Instead the gap turned out to be exhaustion move and I suspect we are going higher next week. This does not invalidate … Read more

Looking at the big picture of the sp500

February 7, 2012May 19, 2010 by Tom

I just drew up a quick longer term chart of the sp500 and I think what could be building here is a large head and shoulders topping pattern which could suggest that the most devastating price action will occur in the July to September time frame of this year. If I have drawn this pattern … Read more

Nasdaq 2000 Price Collapse versus May 2010 SP500 Price Collapse

February 7, 2012May 15, 2010 by Tom

After letting the market action ‘soak in’ after the last two days I am coming to the conclusion that we will see two possible scenarios next week.

The first one is that we do not head down immediately next week or even mid week and instead tread water slightly higher or even into a new very marginal minor high that exceeds the 5/13/2010 price swing high. This type of range bound trading action could take the shape of a symmetrical triangle formation that coils up the price action into a spring that breaks either end of this upcoming week or into next week.

The second scenario is that the market simply falls apart in a series of cascading declines into end of this week, or perhaps into the May 23, 2010 date. This is currently my favored and gut feel scenario that will play out. One of the reasons I am favoring this scenario is because of the heavy downside Friday volume. It was not blow out volume but it was enough for me to sense that it could build into a climax volume with more price destruction.

Also the Euro is in a stance where it could spike lower and gold could spike higher to 1300 to 1400 an ounce in a matter of days. If you look carefully at the Euro, Gold and the stock market, it paints a picture of some type of climax type move this week or next.

Black Monday Coming

February 7, 2012May 14, 2010 by Tom

So far at mid day in the market we have close to 200 million shares trading on the SPY SPDR S&P 500 ETF. So if that is extrapolated out to 4pm close today we could get somewhere near 400 million shares for the day. If we do get closing volume near that level and we … Read more

Went Long the TZA Direxion Daily Small Cp Bear 3X Shs Again Today

February 7, 2012May 11, 2010 by Tom

BestOnlineTrades went long the TZA again today after having closed out the previous position at 7.00 last week. I don’t normally like to scale into a position or add over time but the way the rest of the market is structured, it seems like an ideal risk reward setup right now. We have already snapped … Read more

Free Elliottwave Theorist Today a Deadly Bearish Big Picture

February 7, 2012May 6, 2010 by Tom

Elliottwave.com nailed this market turn once again, just as they called the March 2009 lows. They are on top the current market movements and use Elliott wave theory as a market roadmap. Headlines are usually about what happened already, but Prechter’s headline is about what happens next. It goes beyond providing information. Yes, he wants … Read more