 |
| |
Visit Toni Hansen
at the
International Traders Expo!
REGISTER
FREE!!!
Toni's
Presentations:
June 8, 4:00 pm
The
5 Technical Tools You Should Not Trade Without
June
9, 1:00 pm
Establishing Price
Targets
June
9, 4:30 pm
Dealing With Gaps
____________________
CLICK HERE to learn how you can participate in Toni's
upcoming mentoring
program, live on Hotcomm!
Upcoming course dates:
Scheduled by
demand. Contact Toni for more information.
Disclaimer: Positions discussed for
educational purposes only
and past performance is not indicative of future results. Trading in
securities or commodities may not be suitable for all individuals.
CLICK HERE
FOR THIS WEEK'S POSITION TRADE NEWSLETTER
|
|
|
 |
| |
If
you are unable to view the
images in this newsletter Click
Or put the following in your browser:
www.tradingfrommainstreet.com/Newsletters/focusletter/current.html
|
|
|
Daily
Editorial: |
 |
| |
|
Another Tough Day For the Bulls
Good
morning! Although the airlines, computer hardware companies and
retailers managed to post slight gains on Thursday, the market overall
had another rough day. The Dow ones Industrial Average fell 77.32
points, the S&P 500 shed another 8.51 points and the Nasdaq
Composite declined 15.48 points by the end of the day. Among the weaker
sectors were oil services which lost 2.7%, energy 1.0% and biotechs
fell
2.1%. Interestingly, nearly all of that move was made in the
last hour
of the day. |
|
Overall the market had a very hard time gaining momentum in either
direction throughout the majority of Thursday's session. There was some
slight upside into the open, but after pulling into the 5 minute 20
sma, the market based along those intraday lows before triggering a
sloppy intraday bear flag. The flag then dropped the market into the
zone of premarket lows and the prior day's lows, as well as closed the
morning gap. As those levels hit shortly after 11:00 ET the indices
reacted swiftly to them and pulled back up to perpetuate the 15 minute
range that had been in place since the prior afternoon.
The highs of the 15 minute range held over
noon, but the market whipped around quite a bit with the 12:00
Philadelphia Fed Index. An initial rapid decline popped quickly back up
and the range narrowed dramatically into the early afternoon,
indicating that a strong afternoon breakout was likely, although which
way that breakout would occur was still up for debate.
I was actually focusing more on a long
possibility despite a lot of cons in that direction. The reason was
that many times after a week or so of strong downside, the market can
often look like it will once more sell off coming out of an extremely
narrow range like we saw on Thursday, only to break the other way and
rally sharply for the last hour or two of the day. On the con side,
however, was that the pace within the range was decidedly bearish. The
market continued to have a more difficult time on upside moves within
the channel as compared to downside moves and volume on each upside
attempt was very weak.
The indices
finally made up their minds with the 14:00 ET reversal period when the
lower trend channel of the triangle break lower. The initial selling
was not dramatic, but after forming a bear flag into 15:00 ET the pace
increased. Within a mere 15 minutes the market was making new intraday
lows and a very brief continuation pattern out of the 15:30 ET reversal
period took the market well past Wednesday's levels.
Just under these levels are the 200 day sma in the S&P 500 and the
100 day sma in the Dow Jones Ind. Ave. These are the next major support
levels on the daily charts and look likely to hit on Friday. The pace
of the selling is going to continue to hinder the bulls just like it
did as the week began, making upside momentum very difficult,
particularly in the morning. I am expecting a bit of a retracement off
lows on Friday afternoon as we head into the weekend since many
short-term traders would typically be more nervous to hold over the
weekend following such a move over the last week and a half.
|
| |
| |
|
| |
Economic
Reports and
Events:
|
|
|
May 19: -
May 22: -
May 23: -
May 24: Durable Orders for
April (8:30 am), New Home Sales for April (10:00 am), Crude Inventories
5/19 (10:30 am)
May 25: Chain Deflator-Prel.
for Q1 (8:30 am), GDP-Prel. for Q1 (8:30 am), Initial Claims 5/20 (8:30
am), Existing Home Sales for April (10:00 am), Help-Wanted Index for
April (10:00 am)
May 26: Personal Income and
Personal Spending for April (8:30 am), Michigan Sentiment-Rev. for May
(9:50 am)
|
|
|
| |
Earnings
Announcements of Interest: |
|
|
| |
Only stocks with an
average daily volume of 500K+ are
listed. List may not be complete so be sure to always check your
stock's earnings date before holding a position overnight. (A) =
Earnings after the close, (B) = Earnings before the open,
(?) = Earnings time not specified at the time of this writing
May 19: ASEI (B), ANN (B)
May 22: CPB (?), FLO (?), LOW (?), TECD (?), PAY (?), WTSLA (A)
May 23: CSC (A), LNUX (A), MDT (A), PVH (A), TOL (?), ZL
(A)
May 24: AZO (B), CWTR (A), DLTR (B), JLG (A), MIK (?), NTAP (A), PSS
(B), SPI (?), TIVO (A), WSM (B)
May 25: BLI (?), CHS (A), CMOS (?), JOYG (B), PDCO (B), PDC (B), PLMD
(B), SAFM (B)
May 26: CBRL (B)
Note: All economic numbers
and earnings reports are in lines with those compiled by Yahoo Finance.
Occasionally changes will occur that are made after the posting of this
column.
|
| |
|
|
If
you are receiving this from a friend and would like to
have it sent
to you, click.
Please
visit the Support Center to email questions or comments or
contact support@tradingfrommainstreet.com.
To UNSUBSCRIBE send a
blank email to have this email address removed from the Focus
Letter List only. If
the email list system
does not send you a confirmation, please contact
support@tradingfrommainstreet.com to be removed manually.
©
1998-2006 All information presented is property of
TradingFromMainStreet.com and Bastiat Group, Inc.
©
2006 All charts brought to you
by Real Tick III by Townsend Analytics, Ltd.
|
|
