AI
Thursday, February 12, 2004 7:54:35 PM
The 10:00 high of supreme importance to trend or momentum traders.
Aside from LEN, WFMI the 10:00 high was posted in our newsletter today as an area of possible exhaustion move from Wednesday's upside. We suggest to our traders to enter long (non-earnings plays) AFTER the 9:50 period to get a clearer perspective of the prevailing trend and if at 10:00 you see a spike high BEWARE. LEN, KLIC and WFMI, 3 of our long plays for today passed the 10:00 high test and took out the spike high so they remained to upside for longer time periods.
http://www.marketgems.com/aboutmg1.shtml Check this link for the key reversal periods.
YHOO resistance was cited at 48 with a possible move (ultimate resistance at 48.50) but it was planned to short a rally today. KLAC, SOHU and NTES (and intraday NVDA and ADI were early shorts/put plays as well) Enter early, repent during the rest of the session. THESE ARE NOT EARNINGS PLAYS folks, so don't play them as if they are going to 'da moon especially when the move is in reality only an exhaustion move of upside from the prior session.
That is why YHOO, SOHU, KLAC were easy short the spike highs (same as yesterday). When you get too effervescent at the 10:00 high and start to call new resistance levels, step back, take a breather and another look. Chances are by 10:00 to 10:15 you're in a SHARP REVERSAL OF TREND.
We expected spike highs today in YHOO and YHOO led to the entire asian nets, KLAC and a few other shorts (ADI of course and NVDA as well). KLIC was a nice trend as it was na exhaustion move that did in fact take out the 10:00 highs and just kept moving up after we posted our MEETING OF TAILS to members, it still kept up. Ultimately we sold, but never really got a bite into a short..........yet.
Traders get too excited in pre-market as well, this is NOT the trend, this is an accumulation of buy orders that pile up and once these buy orders are filled (prematurely) the actual trend sets it. Its like getting excited when you start reading the lottery numbers and buy in advance only to see you only got part of the numbers correct. Why the hurry? If the trend is strong it will TAKE OUT THE 10:00 spike high and go higher, it its an exhaustion move, you have a very decent sell short opportunity.
Aside from LEN, WFMI the 10:00 high was posted in our newsletter today as an area of possible exhaustion move from Wednesday's upside. We suggest to our traders to enter long (non-earnings plays) AFTER the 9:50 period to get a clearer perspective of the prevailing trend and if at 10:00 you see a spike high BEWARE. LEN, KLIC and WFMI, 3 of our long plays for today passed the 10:00 high test and took out the spike high so they remained to upside for longer time periods.
http://www.marketgems.com/aboutmg1.shtml Check this link for the key reversal periods.
YHOO resistance was cited at 48 with a possible move (ultimate resistance at 48.50) but it was planned to short a rally today. KLAC, SOHU and NTES (and intraday NVDA and ADI were early shorts/put plays as well) Enter early, repent during the rest of the session. THESE ARE NOT EARNINGS PLAYS folks, so don't play them as if they are going to 'da moon especially when the move is in reality only an exhaustion move of upside from the prior session.
That is why YHOO, SOHU, KLAC were easy short the spike highs (same as yesterday). When you get too effervescent at the 10:00 high and start to call new resistance levels, step back, take a breather and another look. Chances are by 10:00 to 10:15 you're in a SHARP REVERSAL OF TREND.
We expected spike highs today in YHOO and YHOO led to the entire asian nets, KLAC and a few other shorts (ADI of course and NVDA as well). KLIC was a nice trend as it was na exhaustion move that did in fact take out the 10:00 highs and just kept moving up after we posted our MEETING OF TAILS to members, it still kept up. Ultimately we sold, but never really got a bite into a short..........yet.
Traders get too excited in pre-market as well, this is NOT the trend, this is an accumulation of buy orders that pile up and once these buy orders are filled (prematurely) the actual trend sets it. Its like getting excited when you start reading the lottery numbers and buy in advance only to see you only got part of the numbers correct. Why the hurry? If the trend is strong it will TAKE OUT THE 10:00 spike high and go higher, it its an exhaustion move, you have a very decent sell short opportunity.
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