TraderStream - Market Observations and Chart Analysis From A Veteran Trader

Pre-open for the DOW & SPX 3/01/12

2012-03-01T06:12:00.000-08:00

My market oscillator is on a sell. For longer term traders/investors, my rule is to now sell all rallies. The 10 unit moving average is my trigger to enter and exit all trades. If any market cannot support its 50 unit moving average, THIS TELLS ME THE MARKET/STOCK/COMMODITY IS UNDER SERIOUS PRESSURE.

I will continue to use 15 minute charts to manage market positions because this follows the guidelines of my system. Know the rules of YOUR SYSTEM!!!

Peace, Josie Kelly

Pre-open for the DOW & SPX 2/29/12

2012-02-29T05:57:00.000-08:00

Will it hold? Don't get fixated on a number! 13,000 is now just a new support level. This is where the use of chart analysis helps a trader. I continue to use the 10 unit moving average as a way to enter and exit trades. WHAT DOES YOUR SYSTEM TELL YOU?

Peace, Josie Kelly

Pre-open for the DOW & SPX 2/28/12

2012-02-28T06:10:00.000-08:00

Once the Durable Goods Orders numbers came out this morning, both the DOW & SPX gave back all of their pre-open gains. I am sounding like a broken record but CONTINUE to monitor and manage ALL trade positions using 15 minute charts. STOP orders are a MUST at this juncture in the markets.

Peace, Josie Kelly

Pre-open for the DOW & SPX 2/27/12

2012-02-27T06:13:00.000-08:00

Both the DOW and SPX are trading below their 10 unit moving averages on 15 minute charts as we await the open. This is a sell signal on my system. I would continue to use the 15 minute charts to manage positions throughout the day.

I am also monitoring my market oscillator. It is on the verge of an overall longer term sell on the market. Follow the rules of YOUR SYSTEM.

Peace, Josie Kelly

Pre-open for the DOW & SPX 2/24/12

2012-02-24T05:48:00.000-08:00

My goal with this blog is to encourage the reader to develop his or her own system to manage the markets. My system allows me to be in the moment. Therefore, I rely upon short time frames, i.e. 15 minute charts, to monitor and trade the markets.

If you had used the 15 minute charts I presented yesterday before the opening, it would have been possible to see the changes throughout the day. Either you would have closed all trades as my system demands of me or you would be set-up for the open this morning.

Once again, I provide you with the 15 minute charts of the DOW & SPX to prepare for the open. I use the 10 unit moving average to enter and exit positions. The time frame can be adjusted to meet your needs to monitor your trades.

Peace, Josie Kelly

Pre-open for the DOW & SPX 2/23/12

2012-02-23T06:06:00.000-08:00

The 15 minute closing charts for the DOW & SPX should be used to prepare for the open this morning. Since both markets closed below their 10 and 50 unit moving averages yesterday, they were on sell signals using my system at the close of the day.

I would continue to use 15 minute charts to monitor ALL markets after the open today.

Peace, Josie Kelly

Pre-open for the DOW & SPX 2/22/12

2012-02-22T06:09:00.000-08:00

If you use the 60 minute charts for the DOW & SPX this morning, you will find the support and resistance levels for the open. Once again, after the open I would refer to the 15 minute charts to manage all trade positions.

It is definitely a time to protect ALL profits.

Peace, Josie Kelly

Pre-open for the DOW & SPX 2/20/12

2012-02-21T06:28:00.000-08:00

As we begin this US trade week, I must continue to emphasize the importance of the use of technical analysis. The charts DON'T lie. As a trader, I always use a 15 minute chart to manage my positions as I close out ALL positions at the end of each day.

Today, I will use the daily charts for the DOW & SPX for discussion. My basic rule for entering or exiting a position is to use the 10 unit moving average as my trigger. This can be adjusted to meet ANY time frame you choose to manage your positions. I DO NOT INVEST IN THE MARKETS as I am a trader. I DO NOT BELIEVE IN BUY AND HOLD. With use of charts, I am able to pick the appropriate time frame to TRADE the markets.

These are my rules. WHAT ARE YOUR TRADE/INVESTMENT RULES?

Peace, Josie Kelly

Daily charts for the DOW & SPX 2/17/12

2012-02-17T12:28:00.000-08:00

Due to technical problems, I was unable to blog for the pre-open. As we approach the close of trade for the next 3 days, the daily charts for the DOW & SPX provide a stop limit for both if you use the 10 day moving averages.

Regardless of the possibility of the DOW & SPX continuing higher, it does not make sense as a trader to not protect ALL positions over this long holiday.

Use your system to manage your positions. As a day trader, I do not carry positions overnight.

Peace, Josie Kelly

Pre-open 15 minute charts for the DOW & SPX 2/16/12

2012-02-16T05:50:00.000-08:00

Due to the tentative nature of the markets, I would use the 15 minute charts to manage positions for the week. I have included the closing 15 minute charts of the DOW and SPX to find support and resistance levels as we await the open this morning.

Make sure to follow your system rules.

Peace, Josie Kelly

ALERT-60 min chart of SPX near close of trade

2012-02-15T12:58:00.000-08:00

Pay close attention to this chart. IT DOES SHOW THE WAY!

Protect all positions

Pre-open charts of the DOW,SPX,GOLD & $USD 2/15/12

2012-02-15T05:53:00.000-08:00

As we await the open, it appears the DOW,SPX and GOLD are set to open higher.
I have included the 15 minute charts for the DOW and SPX and daily charts for GOLD and the $USD.

If you follow the charts, you will be able to continue to manage these markets.

Remember, to follow the rules of your system.

Peace, Josie Kelly

DOW & SPX under pressure for the open 2-14-12

2012-02-14T06:15:00.000-08:00

As we await the open, futures for the DOW & SPX continue sell signals generated by yesterday's 15 minute closing charts as seen below. If prices break under the limits shown on the charts, refer to their daily charts for further support levels for the day.

GOLD remains on a sell signal based on my system as it closed and remains below its 10 day moving average.

The $USD rests on its 10 day moving average. If this level does not support, it too will generate a sell signal on my system.

Charts will show you the way to trade for the day!

Peace, Josie Kelly

Pre-open daily charts of the DOW,SPX,GOLD & $USD 2/13/12

2012-02-13T05:55:00.000-08:00

As we await the open, just a reminder that this Friday is an expiration day.

The DOW,SPX & the $USD are all trading above their 10 day moving averages. For traders, this is a buy signal for my system. If for any reason this level is violated, then it would become a sell signal.

Use of charts is critical at this juncture in the markets.

Peace, Josie Kelly

60 Min charts of the DOW & SPX last hr.2/10/12

2012-02-10T12:20:00.000-08:00

As you prepare for the close of trade for the day for the DOW & SPX, play close attention to their charts.

Protect ALL positions for the weekend!

Peace, Josie Kelly

XLF shows market weakness for the day

2012-02-10T06:28:00.000-08:00

The XLF is another sector of interest this morning.

Remember: CHARTS NEVER LIE!!!

Peace, Josie Kelly

Pre-open 15 min charts for the DOW,SPX,& $BKX 2-10-12

2012-02-10T06:12:00.000-08:00

As we await the open today, I am focusing on the closing 15 minute charts of the DOW,SPX & $BKX. GOLD and the $USD are in sells based on closing daily charts.

The closing chart of the $VIX sets the stage for increased volatility today. This is a day to make sure to protect ALL positions by the close.

Peace, Josie Kelly

Why is volatility increasing today?

2012-02-09T07:51:00.000-08:00

With apparent positive news, why is volatility on the rise?

Peace, Josie Kelly

60 Minute chart to keep an eye on today $BKX banks 2-9-12

2012-02-09T07:39:00.000-08:00

After the EU news and potential mortgage foreclosure announcement, keep an eye on the $BKX for a reaction to the positive news.

Charts DON'T lie!!!

Peace, Josie Kelly

Pre-open charts for the DOW,SPX,GOLD & $USD 2-9-12

2012-02-09T05:54:00.000-08:00

It is absolutely essential to stay focused on the charts for direction in these markets. They say it ALL.

Know your system and follow your rules. This is no time to GUESS!!!

Peace, Josie Kelly

Chart views of the DOW,SPX,GOLD & $USD 2-8-12

2012-02-08T06:14:00.000-08:00

I feel it is so important to pay attention to the charts. This morning I focus on the 60 minute charts for the DOW and SPX to find their support and resistance levels for traders. The daily charts for GOLD and the $USD give traders their limits.

Stay focused on the charts.

Peace, Josie Kelly

Markets are treading water DOW,SPX, GOLD & $US

2012-02-07T06:11:00.000-08:00

As we await the open, it is obvious from the charts, the markets are treading water. The DOW
continues to trade in the range of a support level of 12,724.37 and a overhead resistance of 13,000.

The SPX finds its support level at 1323 and its overhead resistance located at 1350.

GOLD was unable to hold its 10 day moving average of 1726.12. Therefore, its next support level is its 20 day moving average of 1687.33. Its MAJOR overhead resistance level continues to be 1750.

The MAIN CHART OF INTEREST TO ME is the $US. It has been in a trading range for a week. It hasn't been able to close above its 50 day moving average of 79.21 or its 10 day moving average of 79.21. It would appear that if the 78.50 doesn't hold, the next KEY support level is 76.65. Again, the chart WILL hold the answer.

Peace, Josie Kelly

Pre-Open 2-06-12 for the SPX,DOW,GOLD&$USD

2012-02-06T06:02:00.000-08:00

The support level for the DOW is 12,750. Its overhead resistance level is 13,000.

The support level for the SPX is 1325. Its overhead resistance level is 1350.

GOLD must support 1721 to continue higher. Its overhead resistance level is 1750.

The US dollar is in a ledge formation, which means it will make a dramatic move higher or lower soon. Its overhead resistance level is 79.28. Its key support level is 76.62.

Again, the charts have the answers.

Peace, Josie Kelly

Pre-Open 2-03-12 for the SPX,DOW,GOLD&$USD

2012-02-03T06:07:00.000-08:00

QUESTION OF THE DAY- If this mornings employment numbers are correct, can interest rates remain low until 2014? The US dollar chart should be closely watched now. Gold weakened on the employment numbers.

Pre-open, its appears both the SPX & DOW have broken above their resistance levels. If this remains until the close, the SPX MUST close above 1325 and the DOW MUST close above 12,750.

The overhead resistance target for the DOW will then be 13,000. The overhead resistance level for the SPX will be 1350.

GOLD MUST support 1714.83 to continue its upward movement.

The 50 day moving average of 79.75 for the US dollar MUST be closely watched. If in fact employment numbers are correct, HOW CAN INTEREST RATES REMAIN LOW?

THE CHARTS DON'T LIE!!!

Peace, Josie Kelly

Pre-Open 2-02-12 SPX,DOW,GOLD&$USD

2012-02-02T06:27:00.000-08:00

The DOW's support level is 12,713.69. The resistance level is 12,750.

The support level for the SPX is 1321.81. The resistance level is 1325.

GOLD's support level is 1704.65. Its resistance level is 1750.

The US dollar continues to be under pressure. Its KEY support level is 76.57. Its 50 day moving average of 79.73 is its overhead resistance.

Follow the charts.

Peace, Josie Kelly