Giving Up Hope

//Giving Up Hope

Hawk’s Scan Sentry Report July 9

When trading, one of the more difficult challenges is to keep an open mind. As is the case with life in general, the objectivity of our perspective on the markets is tainted by our preconceptions, expectations, or hopes for the future. However, when trading, hope is not a welcome companion… as Dante quoted “Abandon hope all ye who enter here”. The price movement of the market is not invested in your personal positions,  past predictions, or current analysis;  and ‘hope’ is not a trading plan. While we are trading it is sometimes difficult to keep an open mind and see clearly what messages the current market is showing us, but this is what we must do at all times. We must not invest too much of our present market analysis on our past analysis or on our hopes or trading positions. We start to give back our profits or dig our losses deeper when our analysis is influenced by the positions that we are holding. Although we experience our analysis as subjective thoughts, we must be vigilantly objective.  That is why it is so important to have very responsive and dynamic trading tools, and know how to use them.

So what is our analysis of the markets today? Looking at the daily S&P we see a generally strengthening Radar1 Fear/Greed, a recent bullish orientation in Radar3 Trend Strength, and a bullish Triple Trender.  At the same time we see an overbought sell signal from Trend Exhaustion 1 and a downswing in the Radar2 Price Leader. From this I would expect to see short term (1-3 days)  movement to the downside; but the medium term (1 week +) the outlook is bullish.

In preparation for my trading week I am, as always, creating a watchlist with equities poised to move in either direction. I share some of those with you below. If you have any questions about the indicators on these charts please follow this link to a legend describing these tools.

_____Longs_____

ATRS

(A breakout from congestion to new highs. All of our indicators are bullish ).

RJET

(I like the Pullback 23 as we approach the breakout price of the Bull Flag pattern ).

_____Shorts_____

ASML

(Here is a combination bearish Pullback 23 with an Overbought TE1 sell signal. This occurs at resistance while a bearish pivot divergence formed with Radar1 Fear/Greed and Radar2 Price Leader ).

BKD

(An overbought sell signal from Trend Exhaustion 1 accompanied by a bearish pivot divergence with Radar2 Price Leader ).

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 .

2018-01-08T07:45:56+00:00July 9th, 2012|Hawk's Picks|