The Rise of Fall

//The Rise of Fall

Hawk’s Scan Sentry Report September 10

If you like to trade breakouts on volume then this is a good week for you. There are a lot of them firing off right now.  On the other hand, finding bearish setups to trade this week is a bit of a challenge, but not impossible. Last week’s explosive rally swept through most of the buy-stops that were anywhere near the previous highs leaving only the most steadfast bears grudgingly holding losing positions.  Nonetheless, I do expect to see a pullback sometime this week to the breakout zone between 1400 and 1420 in the S&P index fueled to some extent by short term profit-taking before the market has the opportunity to race much higher. Now that many of the traders are back from summer vacation I will be looking closely at the Radar1 Fear/Greed tool to see if there is significant accumulation at these elevated price levels to sustain this rally. 

Below are some charts of some symbols that the Arps Scan Sentry Toolkit has helped me identify for my weekly trading watchlist. Each contains a little explanation of the analysis visible on the chart. If you have any questions about the indicators on these charts please follow this link to a legend describing these tools.

_____Longs_____

BAC

(This Bull Flag breakout coincides with a resistance trendline breakout and a recent bullish Pullback 23.)

VMED

(A breakout of the down trendline which coincides with a Bull Flag breakout. )

_____Shorts_____

PSA

(A bearish Trender Pullback at the Long term Trender. This coincides with a bearish ‘Pullback Divergence’ with Radar2 Price Leader and Radar1 Fear/Greed )

KR

(Here we see a Trend Exhaustion 1 Overbought signal at resistance. Note that Radar2 Price Leader is pointing down and it is weaker this time than it was the last time price tested the $23.25 level. This is what we call a Deep Dip Triple divergence. )

May the trend be with you,

Hawk

Jan Arps’ Traders’ Toolbox is not an investment advisory service nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities customers should buy or sell for themselves. Examples presented on this site are for educational purposes only.  It should not be assumed that the methods, techniques, or indicators presented in these examples will be profitable or that they will not result in losses. There is a high degree of risk in trading.  Readers using this information are solely responsible for their actions and trade at their own risk. Readers should always check with their licensed financial advisor .

2018-01-08T07:40:41+00:00 September 9th, 2012|Hawk's Picks|