BUY SIGNAL

Check at 6:44 for this buy signal. huge volume from support/resistance...followed by a 2 or 3 low volume pullback...big volume taking out the first candle.

PAUL VOLKER SPEAKS

MARKET SUMMARY

A BEARISH PERSPECTIVE

Going into Monday, there are a few stocks here that look to be ice hole failures at the 50sma daily. Will see if they begin a downturn. POT, RIG, MON, MOS

TURNING POINT

TEchnical Analysis Stock Market Review 3/18/08 from brian shannon on Vimeo.
When BSC dropped to $2 yesterday, it essentially tanked the market. Today, GS and LEH gave good news prior to the open. Later in the day, the Feds cut the rate 75 basis points. Market could be off and running in the short term.

CHAILKIN BOTTOM

1. Make a First low - 1272.66
2. Bounce 1% or more over the next two days
3. Come back down and close below the First low on the third/fourth/or fifth day
4. Make an hourly close above the First low (this generates a buy signal) 1272.66
The reason this bottom is so effective at leading to a good rally is that the lower low shakes out all but the strongest hands. It will take out stops. The only guys left are strong hands; they aren't sellers at low prices.


1. Make a First low - 155.23 on 3/10
2. Bounce 1% or more over the next two days
3. Come back down and close below the First low on the third/fourth/or fifth day
4. Make an hourly close above the First low (this generates a buy signal)- 155.23

PLACES TO CHECK OUT

Here are graphs of VWAP. Also, a few sites to checkout from Dragaon.

Top 1% Stocks by Signal Direction for Mar 13
http://www2.barchart.com/sigdir.asp

Top 1% Stocks by Signal Strength for Mar 13
http://www2.barchart.com/sigstr.asp

Barchart.com - Signals - Top 100 Stocks
http://www2.barchart.com/sigtop.asp

PERFORMANCE ANXIETY

There is a tendency for traders to feel baldly about under performing the market averages on a daily or weekly basis, but success as a trader does not come from such short term measurements or comparisons. We all have our cycles of under or out performance, but over time, the true measurement of success in trading is being consistently profitable regardless of how the overall market is performing. At the end of each trading day you shouldn't focus solely on your P/L, instead you should focus on your thought process that day and how well you executed your plan. If you consistently execute your trades according to plan and still lose money then you may need to reevaluate your approach. While there is definitely a cyclical rhythm to the market, no strategy will always work. You need to constantly and objectively review what is working so you can make necessary adjustments to your plan.

You should always ask yourself whether your results are attributable to your ability to see the markets clearly and execute your plan with discipline, or if the market is making it easy to book profitable trades. There are times when the market makes a trader's job much easier and huge profits can be made in short periods of time, unfortunately those times do not last. The trick is to hold onto those profits when the market becomes more difficult. Many traders experience large losses after a string of profitable trades because they succumb to the feeling "that the losses aren't real, they are just giving back profits". This dangerous thinking is borne from complacency as a result of a feeling of infallibility which leaves the trader vulnerable to large losses. You always have to take all losses seriously and minimize them at the first chance without hesitation, doing otherwise is how amateurs trade. You know what an amateur trader is? Amateurs are traders who make big money in a bull market, give it all back when the trend ends and then blames their losses on the market. Professionals listen objectively to the message of the markets and adapt quickly to changing market conditions.

(Excerpt from Brian Shannon)
**Don't trade during the first hour. A gap down can be filled or vice versa.
**Look at daily to set stops. Look intraday to enter positions.

PERFORMANCE ANXIETY

There is a tendency for traders to feel baldly about under performing the market averages on a daily or weekly basis, but success as a trader does not come from such short term measurements or comparisons. We all have our cycles of under or out performance, but over time, the true measurement of success in trading is being consistently profitable regardless of how the overall market is performing. At the end of each trading day you shouldn't focus solely on your P/L, instead you should focus on your thought process that day and how well you executed your plan. If you consistently execute your trades according to plan and still lose money then you may need to reevaluate your approach. While there is definitely a cyclical rhythm to the market, no strategy will always work. You need to constantly and objectively review what is working so you can make necessary adjustments to your plan.

You should always ask yourself whether your results are attributable to your ability to see the markets clearly and execute your plan with discipline, or if the market is making it easy to book profitable trades. There are times when the market makes a trader's job much easier and huge profits can be made in short periods of time, unfortunately those times do not last. The trick is to hold onto those profits when the market becomes more difficult. Many traders experience large losses after a string of profitable trades because they succumb to the feeling "that the losses aren't real, they are just giving back profits". This dangerous thinking is borne from complacency as a result of a feeling of infallibility which leaves the trader vulnerable to large losses. You always have to take all losses seriously and minimize them at the first chance without hesitation, doing otherwise is how amateurs trade. You know what an amateur trader is? Amateurs are traders who make big money in a bull market, give it all back when the trend ends and then blames their losses on the market. Professionals listen objectively to the message of the markets and adapt quickly to changing market conditions.

(Excerpt from Brian Shannon)

BIG DAY

The biggest up day in 5 years.