Market today created a very classic swing trade setup on the Long side…

It bounced off nicely from it's 50MA as well as the up sloping trend line since mid August.

Still at the oversold side.

 

Have to make sure that this support of the trend line and 50MA holds.

If this thing fails to hold, all hell break loose. We might be seeing lots of stops will get triggered from the LONGs, This will create a mad rush to the sell side, and a overall drop in market will be inevitable.

 

 

A look at the VIX shows that the snapback effect did indeed happen.

It's coming back into the channel.

But still , Stoch is showing overbought, and it's at the upper band.

 

 

 

Overall, am still holding 2 long positions, PRGO and ACN.

 

Date : 30 Oct 2009

Action :
- buy stop at 41.20
- stop lost at 40.35
- sell 1/2 at +1R, trail rest below 1R.

Comment :
- very nice hammer
- looks like a swing trap at the previous low on 23rd Oct's bullish engulfing pattern.
- very very nice + consistent up trending mode, with 30MA and 50MA spreading evenly all the way.

40.35,41.2,42.05,42.9,43.75,44.6,45.45,46.3,47.15,48,48.85,49.7,

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Trade Not Triggered.

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tag : long, lps, hammer, bullish engulfing,