Archive for the ‘Potential Setups’ category

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SPX, GOLD

June 28th, 2010

It looks like SPX is poised to rebound to 1095-1100. After that I would expect the continuation of the downtrend. If you are looking for longer term investments, Gold is offering some pretty amazing buying opportunity. My bold prediction would be a rise of 20% in the next 2 months.

My advice would be to accumulate position in the 1245-1255 range with the stop below 1235. First target on this move would be 1300-1310. After that I expect a minor pullback a another sharp rise to 1450-1500. That should result in formation of a climax top and a sharp reversal.

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Triple-witching week ahead.

June 13th, 2010

The market was a real roller coaster lately. But that’s what traders need, right? After a sharp reversal last week, looking for SPX to rise to 1140. Though, need to see a break above 1108 first. As for the EUR/USD, my target would be 1.2250 before any serious weakness occurs.

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Cliffs Natural Resources (CLF)

June 3rd, 2010

CLF looks like ready to break one way or the other. It is good for at least 15%-20% move from today’s market price. In case of more downside, the target would be 40-45$ in two weeks. Stop at 54$. If we break above 54$, then there is a good chance CLF is going to 60-65$ with the rest of the market. So, in general, no matter which way you chose, metal stocks are offering really good reward.

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S&P 500, EUR/USD Projection. 26.05

May 26th, 2010

After a big gap down yesterday in the SPX, the market managed to make all its losses back. This is a positive sign for the bulls. I expect the upside action to continue at least till the end of this week.

After a strong close yesterday, the futures made a little pullback overnight, forming a flag formation. I expect we will hit 1090-1093 today. If that level is taken out, next stop is 1105-1110. I would be cautious at this level, and take some profits off the table. Also place tight stops to protect your profits. For those who are looking to place some short bets, look at mining sector.

EUR/USD is also due to a pullback. First target is 1.2420-1.230.

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S&P 500 and EUR/USD Update (24.05)

May 22nd, 2010

After a turbulent price action last week, I would be looking for some rebound. Target for SPX 1100-1120 before thinking of re-shorting. Also the fact, that we had a down OPEX week supports this idea.

One of the stocks to consider to play this rebound is ADSK.

The stock is in clear uptrend. It has plenty of support at 27$. My first target would be 31-32. This should coincide with the S&P 500 index at 1100-1120.

The price action for the EUR/USD is not so clear. A lot of uncertainty regarding this pair short term.

Right now the pair is  in a clear downtrend (4H chart). If it doesn’t break above 1.26-1.27 come Monday, then it would be a good idea to place a short. First target 1.2430, second – 1.23. If that doesn’t hold, we will eventually see 1.20 soon.

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Currencies Update

March 28th, 2010

The last week was marked by the continuation of the dollar’s strenght. Will the trend continue? Below are some charts of the major currencies. They suggest, that we might see some correction in the EUR/USD at the beginning and then the continuation of the downtrend. Anyway, the coming week will represent some great short setups for the pair.

Also, GPB/EUR looks quite interesting. It is forming a symmetrycal triangle, ready to breakout to the upside. If that happens, chanses are, we will see much lower levels in GBP. So, watch this closely for setups.

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Stock Market Update.

March 28th, 2010

As we have been in the consilidation face all previous week, there is nothing new happening in the market right now. I still believe we will be slowly grinding higher with the occasional pullbacks.

The main levels to look at are 1150 and 20-day SMA. We might get some rise at the beginning of the week, as fund managers will be doing their usual end-of-month window dressing (buying best stocks, selling worst)

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Market looks tired here. Pullback to 1140 is comming.

March 19th, 2010

Stock market is looking tired here. I am seeing that some sectors are ready for a pullback (mining, financils, tech).

Now is a good place to establish shorts at 1160 with the stop at 1163. Target 1150 by Monday.

The index might reverse down to 1140-1130 during the next week. That would be a nice area to establish long positions. A drop below 1130 would make me very cautious if I were holding longs.

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Market looks tired, some stocks not.

March 16th, 2010

Even though some of the market sectors look tired (tech, financials), there is still plenty of opportunities in the current market. Especially among Basic Material stocks, like the BHP and CHK below.

BHP long term chart suggests that the 82$ area acts like a magnet to the stock. If it is able to hold this pace, we might see 90$ by May Options Expiration.

Another long term bull is CHK. has been trading in a range for more than 6 months. It is a safe bet to buy here with a stop below 24.50 and a targets of 27/30/35.

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Stock Market Update.

March 8th, 2010

Today was a slow day, as expected. No major news and sideways price action.

In fact some of the stocks I mentioned last week have pulled back a little, and have reached target levels:

ZMH – start accumulating at 59.30-59.70. Stop at 58.20. Target 65.00. 1/5 Risk/Reward.

RINO – has pulled back more than 4%, but has already managed to get into positive territory. Expecting a 50% rise by May.

CHK – buy now at 25.00-25.50. It is a save pick unless it trades below 24.00.

ADY – been burned in this one, but I believe it deserves a second chance. Right now it is stuck between 22 and 21. My strategy would be to buy 1/2 at the current level with the stop below 21. Add to the position when we breakout above 22. Looking for a gap close at 24.

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