Free stock pick for 06/22/2011
Dear traders,
Like to write few words about Wednesday expectation. We took several longs last days because I hoped that we will see bounce from SPY 10sma monthly support area. That happens, especially yesterday. After trend day like we saw yesterday usually we will see consolidation day and that is something what I will expect from Wednesday. For now my bias is to see some strength in the morning and then I will expect that volume will decrease until FED announcement at 2:15 pm. After trend day it is hard to expect to find low swing setups. You all know that is my primary focus. I found good swing setups, but for me and my style, with not reasonable risk and with big stop. Because of that I will expect from Wednesday to be day for day trades setups mostly. Also I will look to protect or close already open swings because SPY daily 20sma is bigger resistance if we look in few days contest. You can see few ideas like GOOG, CEG, ZAGG also I will follow LAMR, MMC, SBUX, BEE, EXPE, CIG etc, and for all of them I like to see open action before I will make any trading plan. I like intraday consolidation for possible another buying wave in the morning and I will post updates, but if will be fast setup is above base and stop is under base.
Generally FED day expectations
In the past this usually brought upside in the morning. Instead, pretty much anything goes for the morning and today is likely to be a slow one given the lead-up into it. Volume usually drops off dramatically heading into mid-day and trading at this time becomes very risky. At times we will see a bit of activity ahead of the Fed.
More often than not, when this happens, it is to the downside.
As the Fed announcement nears, look to close down extra market minders and level II screens to avoid system lock from the surge in volume following the announcement. Trading at this time is high risk due to data delays and rapid price movement.
Three waves of activity tend to follow a Fed announcement. There is an initial reactionary move, followed by a correction. This correction can be stronger than the initial reaction. A third wave follows, heading back in the initial post-announcement direction.
Please use smaller risk than usual on swing setups.
I like to note that I have some processor problem on my computer. After several try’s I had luck and open it and now I’m afraid to close it so I decide to visit my comp master after open rush. I don’t know where problem is but I hope that will back soon as possible. In worst case I will be out last few hours and then I will back tomorrow with new comp if need.
Wish you all good trading day
Ivica Juracich
Xpertstocktrader team
PLEASE NOTE:
The primary focus of my service is to find Swing Trades. I look for intraday setups that have a potential to become swing trades. Since my membership is diverse I do post additional ideas (day trades, position trades and scalp trades). It is up to you to decide which trades are appropriate for your trading style. I do NOT personally take every trade. Your success depends on YOU taking trades you understand and like. I am always available to contact for additional trade explanation.
NOTE: I plan my vacation in August and for now it will be after August 15th and I will take two weeks.
Watch ideas
Long:
TRADING THE OPEN
During normal market conditions our regular setups generally do very well regardless what time they are taken. Trading right at the open always adds risk. It is recommended that new trades not be taken for the first 5 minutes the market is open. I will treat each new trade that sets up during this time as a gap trade and wait till the stock comes back and takes out its 15 minute high or low.
Trading is risky. It is our job as traders to reduce this risk and increase our chances of success.
IMPORTANT: Take only the opportunities that you really like and understand. Always enter a trade with a trading plan. If you have any questions, please feel free to ask me. There is a much greater chance of success in your trading if you understand the trade. That is very important. Taking just a few trades is enough to be a successful trader. Overtrading is probably the number one reason new traders fail. I personally mostly take swing trades. Please remember to keep that in mind!!!!!!!!!!!!!!!
If you have any questions, please feel free to contact me.
Good luck trading today!
Ivica Juracich
XpertStockTrader.com
