Thursday, March 26, 2009

Trade Plan for 3/26


  • I ended up selling my 807 S&P at 824.

  • I have put a stop order in place to buy 48 SPY at 82.79. Today's high reached 82.7. 

  • This is just about as high as I think you can go without running into some serious resistance. 82.79 will signify better chances of a breakout. 

  • After or if the buy is executed, I'm going to set a stop for below 82.4, as it will then be clear that my assumption it was breaking out would be wrong. 


 

check out the S&P here:

sp326

then check out my drawings on the Russell. 

The broadening top on the russell is a sign of danger. I learned this from Matt Travisonno's blog here. 

He learned it from Technical Analysis of Stock Trends, which you can download if you search hard enough online.

I plan on getting rid of my longs asap and watching to see if the market breaks through this resistance, or breaks down. I told dad in an email: 

"he last 2 days has had a broadening wedge w/ lower highs and lower lows. trading started getting sloppy after a huge run-up and hitting big resistance."

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