Bearish Flaggishness Part Deux continued...

Pure luck would have it that the Dow reversed right at resistance and the top line on the bear flag. I thought it would at least make an attempt at 11,900 first but the jobs numbers may have been too much for the bulls. For now at least. Would not be surprised to see a test of the lows again. As has been the case recently, day trading is best option right now. I am getting close to a month without doing a trade though. Perfect storm of vacation and backlog at work has given me a good time to take a little break, involuntarily in part. But that is winding down a bit and should allow more time for some intraday trades if conditions persist.

Have a great weekend everyone.

Bearish Flaggishness Part Deux

Let's revisit the bearish flag potential after two days of action this week. We have rallied near the bottom of the 11,600-11,900 resistance area at a pretty good angle. And then we got some profit taking today late day. Saw some resistance today, will see how the next few days shape up. Labor day coming up too...hard to imagine a breadth thrust over Labor day holiday weeks.

Nasdaq chart doesn't look as flaggish, which may be a sign that this pattern will not hold. We shall see.




I am not swing trading in this environment, would like to see clearer market direction. So, I will finally have a little time to do some day trading tomorrow if the oppurtunity presents itself. Not much news flow, but enough stocks moving with catalysts and at least recent news to move with.

Two earnings reporters from this evening that I am watching tomorrow intraday (not at the open) are VRA and PVH. Both up after hours and both beat eps/revs and raised guidance. Will likely gap up tomorrow but will look for a pullback after the first hour.

Good luck tomorrow.

Bearish Flaggishness

Take a zoomed in look at this chart of the Dow 30. I have extended the chart and connected the recent upward sloping lows. I created a parallel line to that to project out the possible pattern, and it could be forming a bearish flag over a period of weeks. It is tough to know when the market will make its decisive move rather than simple a move within a range...but you can see the patterns start to develop as they happen. This of course does not mean it will materialize.

The Dow 30 looks like it wants to try to test the 50 ma from below sometime soon, between 11,600 and 11,900 is the resistance zone. This also around 50% retracement of the recent decline, so beware of rallies into this area. We could very well get another leg down from there, so I am keeping my powder dry aside from day trading potentials. Patience is an absolute necessity right now for swing trading, and abstinence may be the best policy. But a little day trading here and there is in the cards with a volatile market.

Good luck this week all, and hope everyone got through the hurricane safely.