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...
Last weeks analysis in Stock
Market Trading was looking for a gap up on Monday followed
by a gap close and consolidation with 1303 as the low for the week, and
that is exactly what we got. We slightly underestimated the strength of
Mondays move for the trade set ups, and our planned Day Trade short
from 1325 resulted in a -3
The
market has already retraced 50% of the decline and we expect a gap up
in S&P cash at the open on Monday. After that is can close the
gap and we will probably see a consolidating move whilst the market
digests the recent short term volatility.
The market then tanked from that high all the way down to the 1303
target so there was plenty points to be had on re-entering the trade.
The
Week Ahead...
This weeks outlook is a very tough call.
1353 is still out there as a potential target, the gap at 1343 remains
open and there is still no technical change in trend. However, on
balance it looks like there should be some more weakness on the way.
Much will depend on Mondays opening price action, a break higher form
here is likely to see the gap at 1343 closed and a possible test of
1353.
However, what I am going for this week is a drop from the offset. Any
opening gap down on Monday can be closed, with a possible overshoot to
1324.5
After that it can drop towards 1273, but the key pivot level remains at
1293
| Pivots |
Monday |
Weekly |
Monthly |
| R3 |
1358.59
|
1378.07 |
1430.00 |
| R2 |
1340.10 |
1348.57 |
1375.07 |
| R1 |
1330.62 |
1334.76 |
1351.15 |
| Pivot |
1321.61 |
1318.67 |
1320.14 |
| S1 |
1312.13 |
1305.06 |
1296.22 |
| S2 |
1303.12 |
1288.97 |
1265.21 |
| S3 |
1284.63 |
1259.27 |
1210.28 |
| Current |
Week
 |
Month
|
Year
|
| Open |
0 |
1307.07 |
1257.64 |
| High |
0 |
1332.28 |
1344.07 |
| Low |
0 |
1302.8 |
1257.62 |
| Range |
0 |
29.48 |
86.45 |
| Previous |
Day
|
Week
|
Month
|
Year
|
| Open |
1330.73 |
1307.07 |
1289.14 |
1116.56 |
| High |
1331.08 |
1332.28 |
1344.07 |
1219.8 |
| Low |
1312.59 |
1302.58 |
1289.14 |
1011.40 |
| Close |
1321.15 |
1321.15 |
1327.22 |
1258.84 |
| Range |
18.49 |
29.7 |
54.93 |
208.4 |
Key
Support and Resistance Levels
|
1381 |
|
1370 |
|
1360 |
| High? |
1353 |
|
1344 |
|
1334 |
| Current |
1321.15 |
|
1316
|
|
1311
|
| Open
Gap |
1308.44 |
|
1303
|
|
1293 |
|
1288 |
| Low? |
1273
|
|
1225 |
Bold
Numbers = Stronger Support and Resistance
Trade Set
Ups for the Week Ahead
Last weeks Day Trade set up was stopped out for a -3
The planned Swing trade from 1303 didnt quite make it to its ambitious
target of 1338, and closed at 1221 on Friday, banking 18 points. This
gave us a total of 15 points for the week on our trade set ups.
In
reality, there was much more to be had by re-entering short on Mondays
pop, and banking the swing long earlier, as it did actually go all the
way up to 1332.
******
NOTE:
For this format I am using a 10 point stop loss on the weekly trade set
up and 3 points on the day trade set up.
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.
******
Kennys Stock Market Trade for the
Day
| Market |
Trade |
Open |
Target |
| S&P
500 Cash Index |
Sell |
1323
or Best Price |
1311 |
Kennys Stock Market Trade for the
Week
| Market |
Trade |
Open |
Target |
| S&P
500 Cash Index |
Sell |
1321 or Best
Price |
1286 |
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Market Trading, please do us a big favor an send it to a
friend who may find it useful.
Kenny
|
