Trading Journal Wednesday July 29th 2009

Well Today was a confirmation of the broken uptrend.  I noticed bad news came in on Sprint which I guess wasn’t even able to fake a good 2nd quarter earning like the rest of them, 3rd quarter is probably going to be a mess.  This means that the fundies and instituational investors would not prop this one up and I went short.  Made out pretty well for a day’s work and am ready to re-enter the short when it hits the tops of the trend.  Posted a nice chart for all to see, which I will post now –

Sprint

Notice the sloping MACD line plus what could become a volume confirmation.

On the other hand I shorted some financials after they had inexplicably been run up by buying programs attempting to hold back the flow of the impending downtrend.  The retracement they posted was nothing to write home about and after careful evaluation of multiple time frames I found divergences in direction, some of them pushing upwards and some down.  I got out of a those positions with just enough profit to buy myself a sandwhich at lunchtime.

Finally I found two more developing trends which I have entered.  One is UBS

UBS

And the other in UNG

UNG

I’ll be curious to see what happens to this last one tomorrow as the numbers come in for natural gas supplies in the morning.  I don’t expect the numbers to be so drastic that it will upset the forming trend, but I’ll be ready with my mental stops just in case.

I found a couple of other stocks that are forming downtrends but I cannot enter them because they have impending earning announcements early next week.  One of them is LVS

LVS

Other than that the SPX created some obvious trends today that I probably should have day traden on, but I was too busy looking for longer plays.  Treasure hunts are fun.

At the end of the day I made a quick unofficial study comparing the ’87 crash to our current troubles and created this chart –

Crashof87

It’s interesting how people are getting impatient with the economic recovery.  They are quick to forget the past.  In ’87 a crash that by many account was much less severe than our current one took nearly 3 whole years to recover.  Give them a break people.

Tomorrow I expect negative joblessness numbers to come in and perhaps send the prices lower… at least for some of the day.  I’m ready to morph any which way the market takes me though.  I am looking at a stock – COOL which is a video game company that keeps posting big upward moves and developing new bases.  I notice the upward moves are created when the downward market pressure is lifted.  This tells me it’s ready to go up and takes every opportunity to do so.  Another positive stock is JAZZ which is exhibiting similar symptoms.

Once when we’re in bull mode I’ll be cool jazzing it up.  *hold for groans*

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