Support & Resistance Report

[Mr Nasdaq]

nodeal, your observations are correct...

I just responded to Vestor_2000 who had made the same observations.

Here is the post:

http://www.investorshub.com/boards/read_msg.asp?message_id=11055955

[nodeal]

Looks like the 5 minute QQQQ has a positive divergence on the MACD and CCI. Correct?

[3xBuBu]

where is the next support?

[Mr Nasdaq]

Wednesday's Story of Support & Resistance for the QQQQ:

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[Mr Nasdaq]

Chart & Comments Updated for SNDK...

The 'Support & Resistance Report' identified an area of 'Gathering Resistance' (Sell Trigger) between $66.13 and $66.18 going into Tuesday's trade, and so it was found to be.

After printing a high of $66.20 in morning trade, SNDK fell $2.93 to a subsequent low of $63.27

SNDK (5 Minute Chart):

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[Mr Nasdaq]

Ken,

Congrats on your successful CCI based trade.

You're a fast learner

Mike

[kenwong]

Mr Nasdaq: re CCI(20) w/5min chart

Mike,

Thanks for sharing your knowledge about the CCI(20)'s value in the 5-min chart.

Today provided a text-book example of just how you described it. Documented it in this post ... http://tinyurl.com/erwwh

Up until now, my setup has been lacking a way to indicate the strength of trading signals it's been generating. The addition of the CCI(20) looks like it will do the trick.

Ken

[Mr Nasdaq]

Sector Performance Chart and Comments...

A Weekly Analysis of the S&P 500 Index and the 9 Market Sectors That Compose It:

S&P 500 Sector Performance Chart

[Mr Nasdaq]

The CCI and its several uses...

Whether the CCI is attached to a Daily Chart, a Weekly Chart or a 5-Mintue Chart, it is used by traders in the following ways:

1) A cross below the +100 Line often indicates a change in trend from up to down.

2) A cross below the 0 Line often indicates more downside to come.

3) A cross above the -100 Line often indicates a change in trend from down to up.

4) A cross above the 0 Line often indicates more upside to come. ( I noticed that last Friday, the CCI on the Daily Chart of the QQQQ crossed above the 0 Line and that today, the QQQQ was able to eek out a new high for the most recent bounce. )

5) A CCI of +250 and higher is an extreme reading. The price of the QQQQ ordinarily pulls back to some extend when the CCI rises that high.

6) A CCI of -250 and lower is also an extreme reading. The price of the QQQQ ordinarily bounces to some extent when the CCI falls that low.

7) The CCI also displays "negative divergences". A "negative divergence" is when the price of the QQQQ prints a new high, but the CCI does not. It's often a warning that a rally is living on borrowed time.

8) The CCI displays "positive divergences", too. A "positive divergence" is then the price of the QQQQ prints a new low, but the CCI does not. It's often an indication that the bottom has either been established or is near.

9) One of the most important charateristics of the CCI is that it is a leading indicator. It goes up first. Then, the QQQQ follows (and vise-versa).

[Mr Nasdaq]

Oil - Light Crude ($WTIC) ...

has been added to the Support & Resistance Report spreadsheet and to Page 6-7 of my Public Charts at StockCharts.com

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[Mr Nasdaq]

Phelps-Dodge Corp (PD) of the "Basic Materials" Sector...

has been added to the Support & Resistance Report spreadsheet and to my Public Charts at StockCharts.com

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[gloe]

Mike unbelieveable chop today. So far.

g

[Mr Nasdaq]

Thanks gloe...

I posted those observations on the QQQQ only to look up at my monitor to see a 22 cent spike to today's high, so far, of $41.72.

The QQQQ has since then, pulled back and is currently testing the combinded strenght of the "50-Day MA" and the "20-Week MA" in order to see if they are now willing to serve, once again, as Support.

What does Mark Douglas say in his book, "Trading In The Zone"?..."Anything can happen at any moment in the market".

The last two days have demonstrated the truth of that statement.

In closing, the QQQQs are back below the "50-Day" and the "20-Week".

What a fun day!

Mike

[gloe]

I thought that was an excellent observation, Mr. N. So far, Qs are unable to sustain a move above those important levels.

[Mr Nasdaq]

In addition too the 'Support & Resistance Report' spreadsheet,

Nightly observations are offered on the QQQQ that are relevant for the next day's trade.

Here is a portion of Monday night's comments:

"For Tuesday, it will be important, in the short-term, for the low of mid-April ($41.39) to provide Support. If it does not, the door opens to a test of Support at the low of late March ($40.82)...See the dashed gray lines on the Daily Chart.

It will also be important, in the intermediate-term, for Monday's considerable area of "Gathering Support" that was violated by the late day sell off, to be re-established as Support, if not tomorrow, then sometime this week or next.

That's because Monday's area of "Gathering Support" included two individual aspects of Support that are "heavy-duty" in their own right, namely the "50-Day Moving Average" and the "20-Week Moving Average".

It's never good for a stock to spend too much time below either one of those two important aspects of Support. In fact, if the QQQQ rises to find Resistance at them in Tuesday's trade, I would not nurture thoughts of going long."

**********************

The "20-Week-Moving Average" stands at $41.56 going into Tuesday's trade.

The "50-Day Moving Average" stands at $41.61.

[Mr Nasdaq]

"How do you define a day trade?"...

This is a question that was posed at the "Medved QuoteTracker User Group" message board. It is a good question that deserves repeating here.

*******

A "day trade" is one which is established, then closed, within the same day.

It is similar to a "swing trade" in that it is best established at either an area of "Gathering Support" if going long or an area of "Gathering Resistance" if going short.

The rules for exiting a "day-trade", however, are not as clear-cut as are those for exiting a "swing trade".

Here is the approach, in part, that I take:

If I venture a purchase, for example, at "Gathering Support", I keep an eye on the 5-Minute Chart. If the trend turns up, as it often does from an area of "Gathering Support", and if pullbacks are finding Support at the rising 20-Period Moving Average, then, I figure that it is safe to hold on.

I also keep an eye on the "Support & Resistance Report" spreadsheet. It keeps me informed as to which individual aspects of Resistance lie just ahead. An individual aspect of Resistance, whether it be a moving average, a bollinger band, an "R2" Pivot Number, or the previous day's high, etc. can serve as "natural" place at which to close a "day trade".

It's also a good idea to keep an eye on the CCI and ADX Indicators of a 5-Minute Chart. Extreme readings in either or both of these indicators can serve as a sign that it is time to exit a "day trade".

An "extreme" reading for the CCI would be above +200 for a trade on the long side or below -200 for a trade on the short side.

An "extreme" reading for the ADX Indicator would be above 40 for both a long or a short trade.

The most important trading rule that I try to follow is "Never let a winning trade turn into a loser" and if it does turn into a loser, keep the loss small...

It's ordinarily unnecessary to take more than a 10 to 15 cent loss on a QQQQ trade with the aid of the "Support & Resistance Report".

[gloe]

Yes, he has some fantastic information. Enjoy!

gloe

[Mr Nasdaq]

gloe, BTW, one of your earlier posts...

on another board led me to Brett Steenbarger's web site.

Thanks for that:

http://www.traderfeed.blogspot.com/

[Mr Nasdaq]

gloe, Thanks for the clarification...

No, you didn't say anything to make me think that you base today's trading decisions on yesterday's Pivot Numbers

My humble addition to your informative post was more in reply to smartone's post.

Support & Resistance ROCKS???

Amen, Brother!

[gloe]

Did something I said give you the impression that I base trading decisions on the prior days pivot numbers? I didn't mean to. But since it is not uncommon for the day's high or low, or a significant swing high or low, to hit a pivot number, that high/low can carry over into significance for the next day, even though the pivot numbers have changed.

Support and Resistance ROCKS! :)

gloe

[Mr Nasdaq]

gloe,

Thank you for your very informative post!

Here is another thought about "R2" ... It has a lifespan of 1 day, as do the other Pivot Numbers, "S2" and "PIVOT".

That's because Pivot Nubmers are derived from the previous day's high, low and closing price. Friday had another set of Pivot Numbers in force that were derived from Thursday's high, low and closing price.

For that reason, it's usally not a good idea to base the next day's trade on the previous day's Daily Pivot Numbers, unless, of course, the previous day's Daily Pivot Number is part of an area of "Gathering Resistance" or "Gathering Support".

[Mr Nasdaq]

landm19, OIH? It's funny you should ask...

I added it to the "Support & Resistance Report" spreadsheet only a few minutes ago.

It will be there in preparation for Monday's trade along with $OSX, APA and RIG.

[ZoZoStockWatch]

Mr. Nas

Are you tracking the OIH with your service and some of the oil stocks such as HAL SLB BHI? Or is it just QQQQ and tech's

thx

[gloe]

<has anyone tested such a thing?>

Tested it for what? These pivot areas ARE strong.

<also is there any other signal that might be used in conjunction of the supports and resistance which would help deduce where market is going (short term).>

Yes, I am using extreme readings on the 14 CCI/30 min chart as a trading signal in conjunction with support and resistance. A tag of the -200 or +200 on the CCI or even beyond, is an "HFE," a Hook From Extreme. (this concept was invented by Ken "woodie" Wood. See woodiescciclub.com) These HFEs are especially strong when there is a Multi-HFE and the index/ETF is hitting an area of strong support or resistance. I look at 5 main indices/futures: RUT, SPX, INDU, NDX and MID.

See discussion that starts here, and follow the thread: http://www.investorshub.com/boards/read_msg.asp?message_id=10779001 I trade mostly RUT futures, but this method works well on any of the man indices and their associated ETFs, such as the QQQQ. In conjunction with Winfree's Support and Resistance Report, a very powerful combination I would say.

"a question on thursday qqqq ended on R2 but candlesticks and other indicators pointed to an up day on friday and yet we had down day (because of Microsoft earnings)"

QQQQ had a HFE on Thusday on the ramp up. That was a "sell" signal in my book. The HFE occurred with the Qs tagging 42.40, but they went up another 10 cents before falling. Yes, the Qs closed at R2, but hen the CCI had a "head and shoulders" formation on the 30 min chart (See below, black arrow). (In woodie-speak, this is a "ghost".) Now Friday, there is no HFE, but an "inverted ghost" (yellow arrow) which suggests a rally on Monday. But my chart includes Friday's after-hours data, as a huge amount of buying came into the futures just at the close Friday and into 4:15. So we need to see if there is follow through on Monday. (For some reason I cannot get my chart to post here. It is posted here: http://www.investorshub.com/boards/read_msg.asp?message_id=10881916 )

Woodie's patterns in conjunction with Support and Resistance is how I trade. I love the HFE trades, but the most powerful ones with the best follow-through occur in areas of Support or Resistance.

[smartone]

A question for group . I really love these excel files helping me become a disipline trader

a question on thursday qqqq ended on R2 but candlesticks and other indicators pointed to an up day on friday and yet we had down day (because of Microsoft earnings)

I have a few questions
it seem to me on thursday r2 was really strong because qqqq kept on coming back to it all day.. has anyone tested such a thing?

that is the length of time a stock(or index) stays at r1,r2, s1 ,s2 might determine it's strength ?

also is there any other signal that might be used in conjunction of the supports and resistance which would help deduce where market is going (short term).

[Mr Nasdaq]

QQQQ Trades (Weekend Update)...

For the Week Ending Friday, April 28th:

$1.32 = Profit from the 'Support & Resistance Report' Strategy (Day Trades)

$0.99 = Profit from the 'Support & Resistance Report' Strategy (Swing Trades)

($0.15) = Loss from a 'Buy and Hold' Strategy


From 03/06/06 thru 04/28/06:

$9.11 = Profit from the 'Support & Resistance Report' Strategy (Day Trades)

$7.56 = Profit from the 'Support & Resistance Report' Strategy (Swing Trades)

$0.45 = Profit from a 'Buy and Hold' Strategy (QQQQ Closed at $41.45 on Friday, March 3rd)

QQQQ Charts

***************************************************************

A record of 'Buy' and 'Sell' Signals that produced the results above may be viewed at the Support & Resistance Report web site.

[Mr Nasdaq]

QQQQ Swing Trade Short ...

The Swing Trade Short that was established at Tuesday's area of "Gathering Resistance" ($42.08 on the nose)...

was closed this morning when the QQQQ fell to Thursday's area of "Gathering Support" between $42.57 and $42.51.

The minimum profit from this trade was 51 cents per share.

The maximum draw down for the trade was 2 cents when the QQQQ rose to a high of $42.10.

In addition, a "Swing Trade Long" that was established at Thursday's area of "Gathering Support" between $42.57 and $42.51 was closed a few minutes later when the QQQQ spiked to Thursday's area of "Gathering Resistance" between $42.08 and $42.30.

The minimum profit from this trade was, an additional 51 cents per share.

A Swing Trade is defined as a trip from "Gathering Support" to "Gathering Resistance" or vise versa.

It ordinarily takes more than one day to close a Swing Trade. On rare occasions, however, a Swing Trade can be closed within the same day that it is established. That's what happened with Thursday's Swing Trade Long.

[Mr Nasdaq]

A Visualization of "Gathering Support"...

"Gathering Support" for BRCM was between $40.90 and $40.83 going into Wednesday's trade.

If you look at Wednesday's 5-Minute Chart for BRCM (below), you can see the area of "Gathering Support" and its usual effects.

Even if a stock has further downside ahead, as did BRCM on Wednesday, it will ordinarily pause and bounce at an area of "Gathering Support", thereby providing good opportunities for a scalp trade or two.

The "Support & Resistance Report", updated each evening in preparation for the next day's trade, identifies areas of "Gathering Support" and "Gathering Resistance" for over 50 popularly traded stocks and indexes:

[Mr Nasdaq]

Hi gloe! You are correct when you say that a CCI between -250 and -300 occurs much less often that does a CCI of -200 and that a CCI of -200 is often a good place to venture a "low risk" purchase.

On those rare occations, however, when the CCI does dip to between -250 and -300, it makes the trade one of even lower risk.

[Mr Nasdaq]

One more item for your "Bag of Trading Tricks"...

Whenever a stock is trading below its 20MA on the 5-Minute Chart, any trade on the long side is a "scalp" trade only.

A "scalp" trade means, "Take the money and run" when it is presented to you.

[gloe]

Excellent idea! Love the CCI!! But I think getting to the 200 area is sufficient. Getting beyond 200 is very rare. You might miss some good ones.

[Mr Nasdaq]

"Gathering Support" and the CCI...

Add this trading technique to your "bag of tricks". It will put the odds of a successful trade even more in your favor...

When the price of stock falls to an area of "Gathering Support" (Buy Trigger), it is time to venture a purchase.

When the price of a stock falls to an area of "Gathering Support" and the CCI on the 5-Minute Chart falls to an extreme reading (between -250 and -300)...

then it is the closest thing to a "no brainer" purchase that the market provides.

It happened to BRCM this morning. Here is the 5-Minute Chart with the CCI attached. It shows the two ingredients of a successful scalp trade:

[Mr Nasdaq]

Chart & Comments Updated for QQQQ...

The 'Support & Resistance Report' identified a triple portion of Resistance (Sell Trigger) at $42.08 on the nose going into Tuesday's trade, and so it was found to be.

After printing a high of $42.10, Resistance was found.

The QQQQ pulled back 45 cents to a subsequent low of $41.65.

The 3 individual aspects of Resistance that composed Tuesday's line of concentrated Resistance are as follows:

1) $42.08 (20-Day Moving Average)
2) $42.08 (Weekly Pivot Price)
3) $42.08 (Fibonacci 38% Retrace)

QQQQ (5 Minute Chart):

[Mr Nasdaq]

Chart & Comments Updated for NTAP...

04/24 - The 'Support & Resistance Report' identified an area of 'Gathering Support' (Buy Trigger) between $36.45 and $36.38 going into Monday's trade, and so it was found to be.

After printing a low of $36.38, NTAP rose $0.90 to a subsequent high of $37.28.

NTAP (5 Minute Chart):

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[Mr Nasdaq]

A good question in regard to the "Support & Resistance Report"...

has been posed and addressed at the "Medved QuoteTracker User Group" message board:

A Good Question Posed

[Mr Nasdaq]

Excel for Windows - A Free Download...

The "Support & Resistance Report" is an Excel Spreadsheet.

If you do now have "Excel for Windows" on your PC, you may download a free copy of the "Excel Viewer" program from the following Microsoft web site:

http://www.microsoft.com/downloads/details.aspx?FamilyID=c8378bf4-996c-4569-b547-75edbd03aaf0&Di...

[Mr Nasdaq]

QQQQ Trades (Weekend Update)...

From 03/06/06 thru 04/21/06:

$7.86 = Profit from the 'Support & Resistance Report' Strategy (Day Trades)

$6.57 = Profit from the 'Support & Resistance Report' Strategy (Swing Trades)

$0.55 = Profit from a 'Buy and Hold' Strategy

QQQQ Charts

***************************************************************

A record of 'Buy' and 'Sell' Signals that produced the results above may be viewed at the Support & Resistance Report web site.

[Mr Nasdaq]

The Medved QuoteTracker will alert you when the price of a stock rises to its area of "Gathering Resistance" (Sell Trigger) and when a price falls to its area of "Gathering Support" (Buy Trigger).

It will not, however, automatically execute the trade for you. You must still do that yourself.

As you know, you may choose the method by which you receive alerts from the QuoteTracker:

1) "Popup Window" Alert

2) "Sound" Alert ( you may use your own sound files )

3) "Email" Alert ( "Medved QuoteTracker" will notify you via email whenever one of the alerts that is generated by the "Support & Resistance Report" is triggered. )

[Y worry Murray]

Mr N, you say; "A newer aspect of the service enables subscribers to import all of the "Buy" and "Sell" alerts into the Medved QuoteTracker with the click of one button."

I use Medved QuoteTracker, so what exactly can be done with these alerts once imported? Can they be set up to trigger buys and sells or do they only trigger a visual or auditory alarm?

[Mr Nasdaq]

Y worry Murry, You are correct in your assessment...

of the Support & Resistance Report service.

The number of "Buy" and "Sell" alerts that trigger varies from day-to-day. However, there is invariably a handful to choose from.

I post a trigger here from time to time in order to provide an example of how the service works.

I, myself, use the service every day as a guide to profitable trades. Over 200 repeat subscribers use the service as well. I have no idea of how most of them are doing. However, I assume that traders who renew their subscriptions month after month are doing well.

A newer aspect of the service enables subscribers to import all of the "Buy" and "Sell" alerts into the Medved QuoteTracker with the click of one button.

It's a great time saver.

Thanks for your interest. Feel free to ask any other questions that you may have.

Mike

[Y worry Murray]

I gather from your posts that 1 or 2 of your stocks and/or indexes find an area of "Gathering Support" or an area of "Gathering Resistance" daily and retract. Therefore, an appropriate strategy would be to place buy orders at an area of "Gathering Support" or sell orders at an area of "Gathering Resistance" with tight stops daily for all securities monitored. I presume that a number of those stops would be hit daily, but that the fills and subsequent retractions would more than compensate for the losses. Am I correct in my assumptions? Has anyone tried trading this way? Were they successful?

[Mr Nasdaq]

SNDK and its area of "Gathering Support"...

An area of "Gathering Support" (Buy Trigger) caught a falling SNDK in after-hours trade on Thursday.

The area was composed of two individual aspects of Support in close proximity to one another:

1) $61.05 (Weekly Pivot Price)

2) $61.01 (20-Week Moving Average)

After printing a low of $61.00 in after-hours trade, Support was found. SNDK rose to a subsequent high of $66.00.

[Mr Nasdaq]

Stock Charts and The "Support & Resistance Report" :

The goal of a Stock Chart is to reveal levels of Support (areas where a falling price will stop falling and begin to rise) and levels of Resistance (areas where a rising price will stop rising and begin to fall).

The Support & Resistance Report gleans Support Prices and Resistance Prices from a combination of 4 charts (Daily, Weekly, Monthly and "Point & Figure" Charts). It then presents the gleaned prices in a concise and useful manner by sorting them in descending order for each individual stock and by highlighting, in purple, areas of concentrated Support (Gathering Support) and areas of concentrated Resistance (Gathering Resistance).

If the price of a stock is falling, then the report is useful for revealing where the price may stop falling and begin to rise (at an area of "Gathering Support").

Likewise, if the price of a stock is rising, then the report is useful for revealing where the price may stop rising and begin to fall (at an area of "Gathering Resistance").

[Mr Nasdaq]

Chart & Comments Updated for RIMM...

04/20 - The 'Support & Resistance Report' identified an area of 'Gathering Resistance' (Sell Trigger) at $78.00 on the nose going into Thursday's trade, and so it was found to be.

After printing a high of $78.00, RIMM fell $2.00 to a subsequent low of $76.00

RIMM (5 Minute Chart):

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[Mr Nasdaq]

gloe,

I detect that you are one of those unpleasant people who is here to pick a fight.

You didn't request one expample of Suport for the IWM and $RUT. You requested two weeks to a month's worth of Support & Resistance data. That would involve a lot of work for me and I just don't have the time.

As for your "that's all I need to know" statement, the "Support & Resistance Report" has over 200 long term subscribers. That number is growing day-by-day.

These are traders who decided to try a 1-month subscription for a very reasonable $14.98 (see if you can find that price on another subscription service) and decided that they liked what they got for their money.

That's "all you need to know".

Mike

[gloe]

I have looked at your website. I looked at the example. I am asking specifically about a recent example of an area of S or R you identified for the RUT/IWM. We just had a huge rally in all the indices. I want to know if your service would have helped me pick a long for RUT/IWM. Or SPX/SPY, or INDU/DIA.

Since the stockcharts charts do not mention that you caught a trade in any of these indicies, I assume that you did not.
Since you obviously cannot/will not answer my question that tells me all I need to know.

[Mr Nasdaq]

gloe,

There is a good example of the "Support & Resistance Report" Spreadsheet at the Support & Resistance Report web site.

It is accompanied by a clear explaination of how it works and why it works.

Traders who like to buy at Support and sell at Resistance see the value in the spreadsheet right away.

I do not have a "ready made" record of past areas of "Gathering Support" or "Gahtering Resistance" for the IWM or $RUT as I do for the QQQQ and have no plans, at the moment, for producing one.

Mike

[gloe]

<the individual aspects of Support & Resistance that compose an area of "Gathering Support" (Buy Trigger) or "Gathering Resistance" (Sell Trigger) are the same as those used for the QQQQ.>

I don't understand what you mean by this. Do you or do not give specific areas of support and resistance for the other popular EFTs - IWM DIA and SPY (or their indices - RUT INDU and SPX). Can you give me an example of a recent area of support or resistance for the RUT/IWM that you identified in the Report that you provide.

It is a simple request.

[Mr Nasdaq]

gloe,

I maintain a running record of trades for the QQQQ only.

A running record for other ETFs (IWM, SMH, SPY, DIA, XLE, XLB, etc.) would have a similar record because the individual aspects of Support & Resistance that compose an area of "Gathering Support" (Buy Trigger) or "Gathering Resistance" (Sell Trigger) are the same as those used for the QQQQ.

In other words, its the principle of "Gathering Support" and "Gathering Resistance" that works across the board. It doesn't matter which ETF it is applied too.

[gloe]

Well, you have lots of trades listed for QQQQ, but none for IWM, SPY or DIA.

Were there any trades in those other indices recently, say over the past month? Can you tell me, for example, what support and resistance areas in RUT/IWM you identified in the past month? Or past two weeks?

Do you have a record of all the trades?