I am so happy to record another week of full time trading into my life, it was not long ago since I attended APSRI Trader ProMaster program, this is truly a life changing course, undoubtedly I benefited a LOT from the APSRI family. Thanks to Sifu's proven method, JC's unconditional mentoring and the continuous support from our forum masters! Thank you!
Both DJIA and Nasdaq 100 market has been fairly flat and the volume has not really been up levels that people were hoping for.
This week, Federal Open Market Committee (FOMC) policy meeting has been regarded as the turning point that stocks have been searching for to break out of the range with conviction. You may want to stay awake Tuesday night, for the FOMC statement on 22-Sep-10 (Wednesday) 2.15am (GMT+8).
DJIA
I see two possibilities in DJIA:
1. DJIA will continue to trade in narrow range and going higher to test 10,720 high.
As recommeded by wccm last Friday, we expect DJIA to retrace to 10,717, which is perfect for shorting.
DJIA retraces to 10,650 high last Friday, closed at 10,607. For position traders, it is good to plant shorts at 10,700 region, going up close on Tuesday, we could see a little bit of enthusiasm, and perhaps it could be a catalyst to push the index up to 10,720 high again. Abandon short view if market has break above 10,770.
If, market has break 10,720 and trading above 10,770, I abandon the short view and I am looking at the second possibilities:
2. DJIA to continue to retrace higher towards resistance level 10,930, formation of a new B.
Current level of 10,720 is an important resistance, if market continue to trade in narrow range, capped below 10,650, or trading lower, it will form a divergence on Day chart, which will support our view waiting for the downfall.
p/s: for those who are sharp check 4 hour chart - divergence, 30 minutes and 1 hour chart - Japanese candlestick reversal pattern.
Traders are recommended to observe for reversal patterns for shorts, no matter how high is the possibilities of a downfall, remember to protect yourself with Stop Loss and proper risk management! :)
Nasdaq 100
Bullish in Nasdaq 100, it has break above 1940 and closed at 1955. I suspect Nasdaq 100 to continue its rally up to test May-10 high at 1,983 region, and the rally may continue this week. Observe for short opportunities when market retest 1,983 region.
Hope you like my share today. My best wishes trading for the down wave!
Cheers
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