Random Market Thoughts 040107

The 20 and 50 day moving averages of the Nasdaq composite have flatlined on the chart below. Swing trading isnt as easy in this environment. In fact, it’s next to dead, as the flatline indicates. There’s been enough volatility to catch day trades, but a trendless general market. I’ve been trading off the morning gappers, and market swings via QID, and MZZ.

I mentioned a few services that offer morning stock gap lists last week. I found a free one I thought I’d mention through Yaser Anwar’s blog. It’s a pre-open tool offered by Pete Stolcers of Option One that shows what stocks are moving. Nice tool.

The XAU has decided to trade in a narrow range last week, while AEM and GG pulled back. Waching those two for a reversal.

IJH has found support at the 50 dma. A lower high on the daily makes me lean to the short side for a trade. Below the 50dma would help that scenario.

DNDN had the big news Friday. Turn off the 5-minute charts on wild stocks, and focus on the longer time frame. The 15-minute sticks had a pullback of seven candles. Note how they grew smaller each bar, and volume decreased. See the volume increase on the capitulation of the 8th bar. That’s a reversal entry point.