Hello,
Welcome to
Stock
Market Trading
the new look newsletter for
2011 from Traders
Day
Trading & Kenny's
Elliott Waves Blog.
Important, the information provided here
is supplied for educational purposes only and should not be taken as
financial advice or an inducement to trade. Please refer to the full
terms and conditions at www.tradersdaytrading.com and seek
independent financial advice where necessary.
S&P 500 Cash Index - The
Week Ahead
The
Week That Was...
Khalsa
gave us another fantastic Free Friday and if you have not yet had the
chance to take a look, please do join us next week. Don't forget that
you can also benefit from a free weeks analysis over at Khalsaspad.com
when you register for Khalsas free forums and contact K to request your
free week, quoting Kennys Elliott Waves Blog
For last week, timing studies for the
S&P 500 suggested a CIT was due on Friday 4 Feb and based on
this, we were looking for the market to top out
with a possible spill into early Monday.
In fact the market gapped open on Monday and never looked back, leaving
the gap at 1310.87 still open, and breaking to yet another higher high
where it closed on Friday.
The
Week Ahead...
This weeks analysis is a mixed bag and
is not certain which way
it will go until the market opens again. Bulls need another gap and go
move to avoid a back test of 1323 which the bears need to print to kill
the uber bullish elliott wave count.
Based on the fact that prices are up against the upper rising
channel trend line and it is possible to count the move as a complete
elliott wave count, I am biased towards a down move this week again
unless the market gaps open on Monday.
As we all know, Elliott
Waves can just keep on extending a long way and in the larger time
frame I can see no real reason why 1330 should mark an important top
and the next major fibo is the 78.6 retracement at 1381
| Pivots |
Monday |
Weekly |
Monthly |
| R3 |
1354.76
|
1361.99 |
1372.24 |
| R2 |
1340.05 |
1342.94 |
1327.19 |
| R1 |
1334.60 |
1336.05 |
1306.65 |
| Pivot |
1325.34 |
1323.89 |
1282.14 |
| S1 |
1319.89 |
1317.00 |
1261.60 |
| S2 |
1310.63 |
1304.84 |
1237.09 |
| S3 |
1295.92 |
1285.79 |
1192.04 |
| Current |
Week
 |
Month
|
Year
|
| Open |
0 |
1289.14 |
1257.64 |
| High |
0 |
1330.79 |
1330.79 |
| Low |
0 |
1289.14 |
1257.62 |
| Range |
0 |
41.65 |
73.17 |
| Previous |
Day
|
Week
|
Month
|
Year
|
| Open |
1307.01 |
1311.85 |
1257.64 |
1116.56 |
| High |
1330.79 |
1330.79 |
1302.67 |
1219.8 |
| Low |
1318.66 |
1311.74 |
1257.62 |
1011.40 |
| Close |
1329.15 |
1329.15 |
1286.12 |
1258.84 |
| Range |
12.13 |
19.05 |
45.05 |
208.4 |
Key
Support and Resistance Levels
|
1381 |
|
1370 |
|
1353 |
|
1336 |
| High? |
1334 |
| Current |
1329 |
|
1325 |
|
1323 |
| Open
Gap |
1310.87 |
| Low? |
1293 |
|
1288 |
|
1225 |
|
1184 |
Bold
Numbers = Stronger Support and Resistance
Trade Set
Ups for the Week Ahead
Last week was not a good start as both trades stopped out. For this
format I am using a 10 point stop loss on the weekly trade and
3
points on the day trade. This resulted in a -13 for the week.
This
format may not work as I am unable to updates the trading plan on a
live basis and the stock market is a constantly moving target.
It
is important to remember that technical analysis does not tell us what
will happen, it is about the odds and probabilities of what to expect
to happen given a certain set of circumstances.
As circumstances change so must expectations, and trading plans must be
adapted to fit those new circumstances.
That said, I do not give up easily and will continue to try to develop
the format in to a useful resource.
Kennys Stock Market Trade for the
Day
| Market |
Trade |
Open |
Target |
| S&P
500 Cash Index |
Sell |
1333
or Best Price |
1324 |
Kennys Stock Market Trade for the
Week
| Market |
Trade |
Open |
Target |
| S&P
500 Cash Index |
Sell |
1330 (from
Friday)
or Best Price |
1312 |
Thank you for subscribing to Stock
Market Trading, please do us a big favor an send it to a
friend who may find it useful.
Kenny
|
