Economics and Technical Analysis

//Economics and Technical Analysis

Hawk’s Scan Sentry Report September 26

Welcome to Hawk’s Scan Sentry Report. This is Sunday night with stock recommendations from Jan Arps’ Scan Sentry Toolkit for the week beginning September 26.

This weekend the World Bank, IMF,  and global financiers met in Washington D.C. to fret over the current state of affairs of the global economic landscape. It appears that the ‘too big to fail’ banks (which are bigger now than they were in 2008) are once again looking at swallowing the bitter pill of unrepayed loans… this time in Europe. I will spare you my macro-economic rant about how the current recession/depression which is once again being reflected in the global credit markets is the logical result of the thirty year experiment with ‘Supply-Side’ (or Voodoo) economics.  Instead, let’s be practical and take a look at what effect this and the other news will have on our already volatile American markets this week?

My guess is very little. The World Bank’s worries about the fate of the Euro, and the people whose lives are dependant on its value, are already represented by the 16% evaporation of value in the American and European markets since early July.  Usually, by the time ‘news’ hits the newswires most of that information seems to be already baked into the prices of the various markets. Did anyone notice what happened when Steve Jobs announced his resignation as CEO at AAPL… the stock went up for a week!  I am skeptical about trading the news… As we all know, the only reason prices go up or down is because there are more buyers or sellers at any given time.  The reasons persons and corporations have for buying and selling are generally rooted in either fear of losing money or perceived opportunities to make more money.

So let’s look at some opportunities to make some more money.

Due to the high volatility within the range-bound nature of the American markets these days, for ‘long’ trades I am looking to trade corrections in extremely oversold markets using the Trend Exhaustion1 and 2 tools. These trades can be perceived as ‘counter-trend’ trades, so be careful. Remember, these are short term ideas. I’m hoping to gain several ATRs while risking only one. These are not investments or even ‘swing’ trades; but opportunities which may be good for a couple of days at least.  If you don’t like betting against the trend, some of these ideas may not be for you. For ‘short’ trades I am turning to one of our favorite set-ups… the Pullback 23.

Let’s take a look…..

Hawk

_____Longs____

EE: note Radar 2 Price Leader (TE1) crossing out of over-sold zone with a pivot divergence, and the bullish engulfing bar at support.

TMX: note the pivot divergence in Radar1 Fear/Greed and Radar2 Price Leader against the mid-June lows and the Trend Exhaustion 2 signal as the Radar2 Price Leader prepares to cross it’s slow line.

PGN: This looks like a potential pullback to retest its breakout level.

____Shorts_____

FDS: note pivot divergence in Radar2 Price Leader coinciding with Pullback 23. Be careful, this is against  the Triple Trender!

LBTYA: note Pullback 23 in same direction as Triple Trender.

K: Another Pullback 23 in line with the Triple Trender. Beware of Pivot divergence in Radar1 Fear/Greed

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 .

2018-01-08T08:27:54+00:00September 26th, 2011|Hawk's Picks|