How to Bulldoze the Stock Market Using Stop Loss Order
Stock Market Following and Stock Trading Tips
Where The Stock Market is Today, issued May 30th, 2008
NASDAQ Composite
The market changed from uptrend to downtrend on November 09, 2007 and continued in a downtrend until April 02, 2008. The price rose past 2363.52, which was a breakout to the upside and trend changed to the upside. This uptrend remains.. The stop loss has steadily gone up to to 2430.36 less 0.1% equals 2427.93. Until this price is broken to the downside, this market will remain uptrend. 2427.93. It is important to note that the stop loss is getting closer to the price line.
Fig. 2. From April 02, 2008, this is the chart to be used because fig 1 above shows the trend has changed to uptrend. From April 02, 2008, we remain bullish until the charts show otherwise. Six days later, this chart showed the uptrend to have ended but this was invalid because chart 1 intermediate uptrend (below) failed to confirm it: - the trend remains uptrend. As you can see from this chart, the price line remains above the equilibrium line confirming the market is in uptrend.
April 02, 2008: All downside trades closed. New Neutral positions/Calendar Spreads to the upside established. .Neutral positions/Calendar Spreads to the upside have continued to do well and should be retained to benefit from time decay, otherwise watch the current stop loss/downside breakout of 2430.36 less 0.1% equals 2427.93. Remember that with Neutral Positions/Calendar Spreads, you make money regardless of price direction. The only way to lose, is if the price of the underlying moves too far in either direction in which case the stop loss will have stopped you before it happen. You can also structure these trades so you have a very wide profit zone, with a high probability the price will stay in the profit zone. Up to today, May 30, 2008 these Neutral positions/Calendar Spreads to the upside have been rolled over to the upside four times in an effort to remain in the profitable zone.. And seriously though, we notice this uptrend has been very profitable.
The above Fig. 4 above crests confirm exit point to the upside. Monday, June 02, 2008, or thereafter: - close long positions, at any price above 2530.16. By long positions we mean long stocks, long calls, short puts, etc., etc. Neutral positions/Calendar Spreads to the upside should be retained. By long positions we mean long stocks, long calls, short puts, etc., etc. The stop loss should be moved from 2264.02 to 2430.36 less 0.1% equals 2427.93.
Since the market is still upside, retain Neutral positions/Calendar Spreads to the upside and to benefit from time decay, otherwise watch the current stop loss/downside breakout of 2430.36 less 0.1% equals 2427.93.
Fig. 4 troughs confirm fig.3 above. Monday, June 02, 2008, or thereafter: - close long positions, at any price above 2530.16. By long positions we mean long stocks, long calls, short puts, etc., etc. Neutral positions/Calendar Spreads to the upside should be retained. By long positions we mean long stocks, long calls, short puts, etc., etc. The stop loss should be moved from 2264.02 to 2430.36 less 0.1% equals 2427.93.
Point B: On May 22, 2008, we had this signal: "open long positions, at any price below 24.4499 on Thursday May 22, 2008 or thereafter." We got filled on Friday, May 23rd, 2008 at between 2444.99 and 2430.36 (because Thursday's low of 2448.84 took milliseconds).
Fig. 5 - This chart, intermediate downtrend, is not in use at the current market situation. When will it be used?
Fig. 6 - intermediate uptrend, continues to show the market is in uptrend.
Where The Stock Market is Today, May 30th, 2008 - NASDAQ Composite
Action: June 02, 2008: confirm exit point to the upside. Monday, June 02, 2008, or thereafter: - close long positions, at any price above 2530.16. By long positions we mean long stocks, long calls, short puts, etc., etc. Neutral positions/Calendar Spreads to the upside should be retained.. By long positions we mean long stocks, long calls, short puts, etc., etc. The stop loss should be moved from 2264.02 to 2430.36 less 0.1% equals 2427.93. Neutral positions/Calendar Spreads to the upside should be retained and rolled over every time both legs get "on money".
Stop Loss/breakup to downside: 2430.36 less 0.1% equals 2427.93.
And should you have a question you need to ask, feel free to ask for you will be answered. It is through asking that we have been able to have what we have. We provide this information free to help beginners and average traders who might be inexperienced in the complexity of stock market movements make money in the stock market. We provide analysis of Nasdaq Composite Index, SP500, Dow, Russell 3000 and NYSE as we trade them. In addition, we can also upon request provide analysis on Exchange Traded Funds of Nasdaq, SP500, Dow, Russell 3000 and NYSE. We prefer trading Exchange Traded Funds because they spread risks across other stocks, pay dividends, are less noisy, not very prone to rumors and or manipulations, their Options are spread at workable intervals for spread strategies, and above all, ETFs trades are easily predictable by using the broad market indices of Nasdaq, SP500, Dow, Russell 3000 and NYSE.
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