Trends are your friend
Markets have been brutal of late, but to revive this blog i’ll start posting trending models that i’ve created. Hopefully this helps us take the emotion out of these wild markets.
Feel free to comment if this helps or not.
The chart below is of S&P Futures. The red bars defines a downtrend, while grey is neutral, and green bars would be a bullish trend. The chart is created based on technicals and I use this along with a few economic models to create a bias. SPX is approaching resitance again, but based recent FOMC actions we may retest the 50ems (blue line) before resuming a the downtrend. Overall, I expecect more violent action in a range bound market for 2008 before we base out and take out old highs in a few years. This would be the cup and handle pattern I expected when SPX was doing a double top at 1550.
Similarly, this works with stocks where i scan stocks with improving fundamentals and emerging bullish trends. Stocks like POT (Potash turned into enormous trend longs). Of course not all scans turn into POT, but this helps with timing (buying too late, or selling too early). Going forward I will post stocks that could be the next POT based on fundamental and technicals scans.
Filed under: S&P Futures, charts, stocks | Leave a Comment
-
Recent Comments
Greg on Closing Puts James on About James on About Dejan on Down but Not Out! Reno on Down but Not Out!
No Responses Yet to “Trends are your friend”