Trading Charts

3-1-09: Believe it or not, the charts below are still relevant. Price remains withing the support/resistance channel. Unreal. There's no telling how long this sideways actions will continue, but at least you know what price breaks to watch for.

1-31-09: The main trend remains to the downside, however, the S&P and QQQQ charts are a bit oversold. A bounce to resistance lines could happen, so if you are just going to short, wait for the bounce to resistance. Here are the daily charts for the QQQQ's and S&P. Remember that the inverse ETF's for those are the QID and SDS.

QQ

S&PS&P

1-21-09: Note that the uptrend line in the S&P has been broken to the down side. It could retrace up to the line, but the main trend is now down. It's safer to trade to the down side, than to trade expecting upward moves.

S&PS&P
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click on charts to enlarge
DowDow

The yellow lines are the longer term price levels to watch. On the 60 minute chart below, the short term tradeable price levels are in yellow. These lines are support/resistance lines, that once price reaches the area it will likely turn in the opposite direction. That's when you make your trade. For instance, on the 60 minute chart, if the Dow trades above 10, 610, then it may trend up to the next level shown. If price can't break that level, or falls below it, then the next possible bounce area would be 10559 area.

Dow 60Dow 60

Q DailyQ Daily

Q 60 minuteQ 60 minute

The two charts above are for the QQQQ's, daily and 60 minute. The price levels are marked in yellow, the same as for the Dow.

To trade an upward price movement in the Dow, use the DIA. For downward price moves, use DXD. For an upward price move on the QQQQ, use QQQQ. For downward price moves, use QID. I'm not listing price for the DXD or QID, because those reset daily and there's no way of knowing what the indices will do. To determine an entry and exit on the DXD or QID, use the price levels of the DIA and QQQQ. For instance, the Dow reaches a certain price level where you believe it may go down, then buy the DXD where ever the price is at that time.

There are no long (buy) positions, because I could not find a stock chart that has a good risk/reward. I'll update this on Wednesday (Market is closed Monday), after we find out who wins the Tuesday election in Massachussets. Email me if you have questions :)