WHERE ARE WE GONNA GO?

The market has decided to pierce previous support and look to move downward over the past couple of days.  Where we go from here, no one knows.  If you look at the DJIA on a weekly chart you will see that we are in a downtrend after hitting the 200 day moving average (it acted as resistance)  and falling to our present position.  It has broken down further past the March lows so it would portend a fall.  Looking at the stochastics on a weekly DJIA chart shows that it is nearing an oversold area so a small bounce may be in order.  Don't you just love all the reasons I can come up with to try and "predict the market."  I still do not believe anyone can, but I am trying to predict near term moves by looking at charts.  

GXDX recently popped up and is retracing again to a buy point and do I ever hate buying when the market is going down.  Based upon on of my screens, however, GXDX has shown a buy signal and I made mention that a good buying point was below $31.  Well, I bought more shares today at $30.38 after the stock bounced of its 20 day EMA and after the ADX showed a buy signal about 2 weeks ago and 6 weeks ago.  

Shorting VIVO was a good thing.  Still waiting for CRZO to drop buy oil prices keep holding steady. 

Let's see where we go from here.

Good luck trading.

JD

NAVG LOOKS GREAT ON P AND F AS WELL AS A DAILY CHART

NAVG looks good on a P and F chart as it has broken a downtrend and is now consolidating. If you look at a daily chart like the one here, you will see there is a strong rise in the ADX after dipping to 10 in mid-June. As the ADX gets to that low, there should be a strong movement one way or the other and it has chosen up. Now, the 200 day MA may pose a threat to this recent rise as it met resistance today. I would love to add shares when it retreated back down to $52.50 to $53.50.

GXDX has done the same thing and right now it may be a little overexteded. So wait for this one to pull back into the $29 to $31 range.

WYE HITS BUY SIGNAL ON WEEKLY CHART

WYE has crossed the ADX system that I like to trade meaning this is a long term trade (1 year) since the cross occurred on a WEEKLY chart and not on a daily chart. I have added a few shares onto my account and will buy on dips (anywhere from $46.25 to $47).

I also bought the puts on VIVO.

LOOKING AT A NEW MONEY MGMT SYSTEM, BUYING PUTS TOO

The overall market continues to decline and I will ride the stocks that continue to make lower highs and sell those rallies (or buy puts).

OXPS - on a weekly chart, the slow stochastics (14,3) are in overbought territory and the ADX is below 25 meaning that the stock is not trending. On a daily chart (seen on this blog), it has had a small uptrend for the past few months, but the stochastics are also heading lower while the ADX is at 15. Note that the ADX did not rise above 25 during this recent uptrend and if a stock trends up strongly, so should the ADX. Since both stochastics on a weekly and on a daily chart coincide, I suspect that the stock is going to head lower for a little while, but this is debatable.

CRZO - Here is one that I see on a daily chart that is probably going to drop a little while. The weekly chart shows a strong uptrend during the past few months, but the ADX is showing negative divergence - i.e. the stock has moved higher, but the ADX is now trending downward. On the daily chart, the ADX is less than 25 denoting a non-trending stock and the slow stochastics have just broken down below the overbought area. Perfect opportunity per stochastic recommendations.

Another one I like on the short side is VIVO. It has had a long uptrend also on a weekly chart but in mid-April, the uptrend was broken with high trading volume. Since that time, the stock has risen, but trading volume never surpassed the high selling volume. Focusing back down onto a daily chart shows the stock hitting the 200 day moving average and it is resistance. I see this as another perfect time to short the stock or buy puts.

Good luck trading.

JD

THANK YOU ESLR!!! WATCH UGI

I am watching UGI since the weekly ADX is getting ready to cross as a buy signal and the daily ADX has just created a buy signal by crossing the 20 line. The stock also broke out of consolidation that has lasted for 2 years. I am putting a buy order in near $27.75.

ESLR - SharpCharts from StockCharts.com

ESLR - SharpCharts from StockCharts.com: "ESLR" Check out this chart in that the Stochastic is turning positive in a non-trending stock. That would make this much more of a buying opportunity.

LONG GSX, FLEX, AMZN, AMD

LONG AMLN, POSSIBLE REBUY ON STAR, SHORT NTAP AND GNK