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AMGN - Wednesday's Sell Alert ... Thursday's Buy Alert
Consistently Successful Traders buy at areas of Gathering Support and sell at areas of Gathering Resistance. Knowing where these areas are located helps them to determine when to buy and when to sell.
Note: Each day's area of Gathering Support and Gathering Resistance is calculated the night before.
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QQQQ - Tuesday's 5-Minute Chart...
The QQQQ held onto gains from Monday's rally on Tuesday by spending the day in a narrow trading range that became more narrow as the day wore on.
Tuesday's 5-Minute Chart (below) shows the development of a triangle from which the QQQQ will break either up and out or down and out.
On Wednesday, no economic reports are scheduled for publication. The QQQQ will trade, therefore, based on whatever steam it has left.
If the QQQQ is, indeed, moving up and down within the context of a trading range as the ADX Indicator on the Daily Chart suggests, then, it has now risen to the upper end of that range. This observation, in addition to the fact that Tuesday's price action resulted in another Doji style candlestick (see the Daily Chart) suggests that caution on the long side is in order.
QQQQ - Friday's 5-Minute Chart:
The QQQQ demonstrated on Friday that it remains in 'buy the dips' mode. After gaping down at the open, it recovered to yet another new high for 2006 when it printed $44.86.
Friday's 5-Minute Chart (below) shows a gap down open followed by a rally to Gathering Resistance after which the QQQQ pulled back into the close.
On Monday, the QQQQ may stay put while it awaits the week's string of Economic Reports, the first of which arrives on Tuesday.
The most important report of the week will arrive at 8:30am Wednesday morning. It's the 3rd Quarter Gross Domestic Product (GDP) Report. The GDP is defined as 'the market value of all final goods and services produced within the U.S. in a given period of time' and, therefore, is an indication of whether the economy is growing or shrinking and by how much.
It's sure to be a market mover.
Wednesday's Buy Alerts - APA, OIH, QCOM...
It's better to buy at Support than at Resistance:
Traders who correctly identified areas of Gathering Support (Buy Alerts) for APA, OIH and QCOM going into Wednesday's trade reaped the following results:
Note: Each day's area of Gathering Support and Gathering Resistance is calculated the night before.
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QQQQ - Monday's 5-Minute Chart
The QQQQ delivered a volatile day on Monday with a spike down at the open followed by a recovery and a spike down in the afternoon, also followed by a recovery. In between spikes, the QQQQ managed to eek out a new high for 2006 when it printed $44.48.
Monday's 5-Minute Chart (below) shows the day's volatility and a wider than usual area of Gathering Resistance.
On Tuesday, the QQQQ remains deep in overbought territory where it has been content to dwell in recent days.
No one really knows on what day a meaningful pullback will begin. Some speculate that it will be one day in December. Others say, "after the New Year".
It may be that the goal of the QQQQ is long-term Resistance at the upper trend line of the Weekly Chart which stands this week at $45.50.
Whether the pull back comes sooner or later, it's time to "be careful out there".
Note: Each day's area of Gathering Support and Gathering Resistance is calculated the night before.
Thursday's Buy and Sell Alerts (SPY, QQQQ and QID)
Subscribers to the Support & Resistance Report received the following Buy and Sell Alerts on Wednesday evening in preparation for Thursday's trade and reaped the following results on Thursday:
http://support-resistance-report.com
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Note: Each day's area of Gathering Support and Gathering Resistance is calculated the night before.
Definition of a 'Bear Trap'
A bear trap begins with a Triple-Bottom Breakdown that encourages traders to establish short positions in anticipation of further downside. The Triple-Bottom Breakdown, however, is then followed by a sharp rally (like the one that began on Monday) that traps the bearish traders in their short positions.
The following Point & Figure Chart of the Nasdaq Composite Index displays a classic bear trap formation. The arrow on the chart points to the Triple-Bottom Breakdown, that occurred last Friday. The rising column of Xs that immediately follows represents the sharp rally of Monday and Tuesday(Wednesday's and Thursday's continuation of the rally, not shown here, stacks even more Xs).
To learn more about Point & Figure Charts, the following web site provides an interactive online turtorial that is excellent and free: http://www.dorseywright.com
YHOO - Wednesday's Buy and Sell Alerts...
Subscribers to the Support & Resistance Report purchased YHOO and then sold it at precisely the right times during Wednesday's trade because they had received the following Buy and Sell Alerts on Tuesday evening:
1) Gathering Support (Buy Alert) between $26.34 and $26.18.
2) Gathering Resistance (Sell Alert) between $27.17 and $27.22
http://support-resistance-report.com
QQQQ - Tuesday's 5-Minute Chart ...
The QQQQ continued its 'bear trap' rally on Tuesday by printing a new recent high of $43.09.
Tuesday's 5-Minute Chart (below) shows the QQQQ slicing through Gathering Resistance in early trade. Slicing through Gathering Resistance without at least pausing to say, 'Howdy do?' is a no-no. Therefore, the QQQQ found itself pulling back in the afternoon in order to pay its proper respects.
On Wednesday, a continuation of the 'bear trap' rally would find the QQQQ testing Resistance at its 2006 High ($43.23).
Note: Each day's area of Gathering Resistance and Gathering Support is calculated the night before.
QQQQ - Monday's 5-Minute Chart ...
The wily QQQQ opened strong on Monday and then shot higher. Only Monday's area of Gathering Resistance was able to stop it. Even then, there was no subsequent pull back from Gathering Resistance.
Monday's 5-Minute Chart (below) shows the morning spike to Gathering Resistance and how the QQQQ spent most of the day splashing within its narrow boundaries, temporarily peeking above the upper boundary in the afternoon.
On Tuesday , the QQQQ will trade with one eye on U.S. election results.
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QLD and SMH - Friday's 5-Minute Charts ...
It's better to buy at Support than at Resistance:
Traders who correctly identified areas of Gathering Support (Buy Alerts) for QLD and SMH going into Friday's trade reaped the following results:
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QQQQ - Wednesday's 5-Minute Chart ...
The most important observation that can be made regarding Wednesday's pull back is that the QQQQ closed below Support at its rising '20-Day Moving Average' for the first time since mid-August.
Wednesday's 5-Minute Chart below shows that the force of the pull back was such that an inititial area of Gathering Support failed; and that the QQQQ was forced, therefore, to rely on a second area of Gathering Support between $41.79 and $41.82 from which it bounced modestly into the close.
On Thursday, what the QQQQ does in relation to its '20-Day Moving Average' will have the undivided attention of the market.
If the QQQQ proves unable to recapture and hold that line, then a deeper pull back may, at long last, be in store.
An area of Gathering Support (Buy Alert) lies between $__.__ and $__.__ going into Thursday's trade.
An area of Gathering Resistance (Sell Alert) lies between $__.__ and $__.__
QQQQ - Monday's 5-Minute Chart ...
The QQQQ dipped in early trade on Monday to test Support at Friday's Low. Support was found and the QQQQ, which remains reluctant to pull back to any great degree, rose to a subsequent high of $42.65.
Monday's 5-Minute Chart shows the Q's continuing fascination with the $42.60 vicinity, which has served alternately as Resistance and then Support and which served as Resistance again on Monday.
On Tuesday, the QQQQ will trade based on the 10:00am 'Consumer Confidence Report' which is often, as we have witnessed in the past, a market-mover.
An area of Gathering Support (Buy Alert) lies between $__.__ and $__.__ going into Tuesday's trade.
An area of Gathering Resistance (Sell Alert) lies between $__.__ and $__.__
Friday's 'Sell' Alerts...
The Support & Resistance Report identifies Buy and Sell Alerts each evening for import into QuoteTracker via the 'Paste From Excel' Button on QuoteTracker's 'Quick Alerts' Tab.
For example, subscribers to the Support & Resistance Report received a Sell Alert for AKAM, NVDA and IMCL on Thursday evening in preparation for Friday's trade.
When the prices of AKAM, NVDA and IMCL rose to their respective Sell Alerts on Friday, QuoteTracker Users received an Alert for each one via the QuoteTracker Alert System.
The following 5-Minute Charts from Friday's trade are visual examples of the results:
For QuoteTracker Users...
The focus of the QuoteTracker User Group message board is to provide support for traders who use the Support & Resistance Report in combination with QuoteTracker.
The Support & Resistance Report identifies Buy and Sell Alerts each evening for import into the QuoteTracker via the 'Paste From Excel' Button on QuoteTracker's 'Quick Alerts' Tab.
For example, subscribers to the Support & Resistance Report received a Sell Alert for the QQQQ last Saturday in preparation for Monday's trade.
When the price of the QQQQ rose to Monday's Sell Alert, QuoteTracker Users received the Alert via the QuoteTracker Alert System.
The QQQQ subsequently pulled back a dollar, thereby, providing traders who ventured a short sale at Monday's Sell Alert with a nice profit.
QQQQ - Last Week's 5-Minute Chart:
QQQQ - Wednesday's 5-Minute Chart...
The QQQQ continued its heavy-volume pull back on Wednesday from Monday's area of Gathering Resistance between $42.52 and $42.60.
Wednesday's 5-Minute Chart shows a gap-up open (a positive reaction to the 8:30am CPI Report) that found Resistance at the declining '200-Period Moving Average'.
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SNDK - Tuesday's 5-Minute Chart...
An area of Gathering Support (Buy Alert) between $59.87 and $59.90 was identified for the popularly traded stock, SNDK, going into Tuesday's trade, and so it was found to be.
After printing a low of $59.75, Support was found.
SNDK rose $1.20 to a subsequent high of $60.95:
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QQQQ - Tuesday's 5-Minute Chart....
"Monday's 5-Minute Chart shows the QQQQ loitering within and just below Gathering Resistance for most of the day".
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Areas of Gathering Resistance serve as pivotal areas on a chart; they are areas where the price of a rising stock will invariably pause before deciding what direction to take next.
Tuesday's 5-Minute Chart demonstrates how vital it is for traders to know the exact location of areas of Gathering Resistance.
A short position established within Monday's 8-cent area of Gathering Resistance yeided an impressive profit on Tuesday:
QQQQ - Monday's 5-Minute Chart....
It pays to know the exact location of Gathering Resistance.
Monday's 5-Minute Chart shows the QQQQ loitering within and just below Gathering Resistance (Sell Alert) for most of the day.
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QQQQ - Monday's 5-Minute Chart....
It pays to know the exact location of Gathering Resistance.
Monday's 5-Minute Chart shows the QQQQ loitering within and just below Gathering Resistance (Sell Alert) for most of the day.
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QQQQ - Thursday's 5-Minute Chart....
The QQQQ opened strong on Thursday, held its gains, then rallied impressively on the 2:00pm 'Beige Book' Report.
Only Thursday's area of Gathering Resistance between $42.17 and $42.23 was able to contain the rally...and that's all it was able to do...there was no subsequent pull back from Resistance.
Thursday's 5-Minute Chart shows the gap-up open followed by the 2:00pm rally to Gathering Resistance.
On Friday, the QQQQ will trade initially on the 8:30am 'Retail Sales' Report and then on the 10:00am 'Consumer Confidence' Report.
Further upside in the QQQQ will meet with an area of Gathering Resistance between $__.__ and $__.__.
QQQQ - Wednesday's 5-Minute Chart....
The QQQQ rose to Wednesday's area of Gathering Resistance between $41.77 and $41.81 when it printed a high of $41.83. Resistance was found. The QQQQ pulled back to a subsequent low of $41.17.
Wednesday's 5-Minute Chart shows a "picture perfect" trade for those who ventured a short sale at Gathering Resistance.
By "picture perfect", I mean that a short sale ventured at Gathering Resistance gave traders little to no discomfort.
That's often how it is with a short ventured at Gathering Resistance or a purchase ventured at Gathering Resistance.
Hi Mr.Nasdaq ... Thanks for your "lessons" ... I've learned a lot.
Here is my current view ... I'm short-term Short:
QQQQ - Tuesday's area of "Gathering Support" (Buy Trigger)...
The Support & Resistance Report identified an area of "Gathering Support" (Buy Trigger) for the QQQQ between $39.90 and $39.97 going into Tuesday's trade, and so it was found to be.
Tuesday's area of Gathering Support was emailed on Monday evening to Support & Resistance Report subscribers.
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"Gathering Resistance" for AKAM...
The Support & Resistance Report identified an area of "Gathering Resistance" (Sell Trigger) for AKAM at $50.90 (on the nose) going into Monday's trade, and so it was found to be:
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It's uncanny how the price of a stock invariable pulls back, or at the very least pauses, whenever it meets with an area of "Gathering Resistance"...
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Use Fast Stochastics as a "confirmation" and watch the profits roll in...
The following 5-Minute Chart shows how Fast Stochastics can be used at Gathering Support to confirm that a reversal up is immanent.
When Fast Stochastics is below 20 (oversold territory) and rising, the confirmation of an immanent reversal up from Gathering Support is issued when the thick black line crosses above the thin red line. A cross above the 20 line represents a further confirmation.
The 5-Minute Chart also shows how Fast Stochastics can be used at Gathering Resistance to confirm that a reversal down is immanent.
When Fast Stochastics is above 80 (overbought territory) and falling, the confirmation of an immanent reversal down from Gathering Resistance is issued when the thick black line crosses below the thin red line. A cross below the 80 line represents a further confirmation.
The QQQQ printed another new high for its Summer Rally on Tuesday when it rose to $40.80.
$40.80 was the front door of Tuesday's narrow band of "Gathering Resistance" between $40.80 and $40.82. Resistance was found and the QQQQ fell to a subsequent low of $40.40.
Tuesday's 5-Minute Chart shows the QQQQ rising to "Gathering Resistance", pulling back $0.40, then, recovering in the afternoon:
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For Wednesday, the QQQQ is poised for a second challenge of Tuesday's area of "Gathering Resistance" between $40.80 - $40.82.
If that Resistance is captured, there is another substantial area of "Gathering Resistance" not far away (see the Support & Resistance Report spreadsheet for details).
As for the decent into the October Low ... it could begin at any moment from current lofty levels ... if not this week, then, likely, next week, after end of quarter "window dressing" is finished.
QQQQ - A Swing Trade Long - No Muss, No Fuss...
The following observations were sent to subscribers to the Support & Resistance Report along with Tuesday's areas of "Gathering Support" (Buy Triggers) and "Gathering Resistance" (Sell Triggers) for the QQQQ and 70 other popularly traded Stocks, ETFs, Indexes and Funds.
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The QQQQ delivered a day of wild volatility on Monday. It opened strong and tested Resistance at Friday's high only to pull back to test Support at Friday's low. Support was found from which the QQQQ rallied impressively into the close.
Monday's 5-Minute Chart shows how a "swing trade long" established at Friday's area of "Gathering Support" between $40.63 and $40.72 could have been closed at Monday's area of "Gathering Resistance" between $40.24 and $40.37. It also shows how Monday's area of "Gathering Resistance" was captured by that day's unrelenting rally:
For Tuesday, the QQQQ is in position to test Resistance at the high of its Summer Rally ($40.67). It came within 1 cent of that line of Resistance on Monday.
How much higher the QQQQ can go upon the capture of that Resistance is another question. The price action on the 5-Minute Chart has the look of a bearish "Rising Wedge". Nevertheless, there is room within the wedge to rise to $41.00 and higher on Tuesday.
As for the decent into the October Low ... it could begin at any moment from current lofty levels.
QQQQ - Observations on Friday's Action and What It May Mean for Monday's Trade...
The following observations were sent to subscribers to the Support & Resistance Report along with Monday's areas of "Gathering Support" (Buy Triggers) and "Gathering Resistance" (Sell Triggers) for the QQQQ and 70 other popularly traded Stocks, ETFs, Indexes and Funds.
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The QQQQ continued its pullback from Thursday morning's high on Friday, this time closing below key Support at its "200-Day Moving Average".
Friday's 5-Minute Chart shows the QQQQ violating its initial area of "Gathering Support" (the one that contained the "200-Day Moving Average"), thereby, issuing a warning to longs, but, finding Support at its second area of "Gathering Support" from which it bounced into the close:
On Monday, continued Resistance at the "200-Day Moving Average" would be an additional sign that the QQQQ may now be in the process of delivering that seasonal phenomenon known as the "October Low".
The Summer Rally, which ordinarily begins in July and ends in August, extended itself this year into the first 3 weeks of September. In one part of the country, that 3 week extension would be referred to as "postponing the future".
If the future is now unwilling to be postponed any longer and the QQQQ is now ready for its traditional decent into an October Low, then it is not a time to be brave on the long side. It is a time, instead, for areas of "Gathering Support" to provide Support only temporarily and for "back-side-bounces" to former areas of "Gathering Support" to be used as selling opportunities ("Gathering Support, when violated by a falling price, becomes Gathering Resistance".)
A Successful "Swing" Trade...
A "Swing" Trade is a trip from Gathering Support to Gathering Resistance or vise versa.
The following 5-Minute Chart shows the trip from Tuesday's area of Gathering Support (Buy Trigger) to Wednesday's area of Gathering Resistance (Sell Trigger).
Wednesday's area of Gathering Resistance was emailed on Tuesday evening to "Support & Resistance Report" subscribers.
QQQQ Chart:
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID735617
Support & Resistance Report:
http://www.support-resistance-report.com
Areas of Gathering Support and Gathering Resistance form much more reliable trading opportunities that do indivdual aspects of Support or Resistance that are standing alone.
Consistently Successful Traders...
buy at areas of Gathering Support and sell at areas of Gathering Resistance. Knowing where these areas are located helps them to determine when to buy and when to sell.
The following 5-Minute Chart shows Tuesday's trip from "Gathering Resistance" (Sell Trigger) to "Gathering Support" (Buy Trigger).
Tuesday's areas of "Gathering Support" and "Gathering Resistance" were emailed on Monday evening to "Support & Resistance Report" subscribers.
QQQQ Chart:
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID735617
Support & Resistance Report:
www.support-resistance-report.com
Discovery,
I see what you mean, but...
"Gathering Support" was calculated afer last Friday's close in preparation for Monday's trade.
It correctly identified Monday's low, as "Gathering Support" often does:
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Thanks daaverage...
Purchases are ventured at areas of Gathering Support (Buy Trigger) and sold at areas of "Gathering Resistance" (Sell Trigger). It's that simple.
It's also a strategy that frees us from hyperventilating about what to do when to do it:
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