Online Trading Update - 072407

With options expiration complete, and a week where the major market indexes basically stalled, did we get an indication of future market direction today? The market was due for a snap back. The 50 day moving average seems a decent short term target for the Nasdaq now. Or, like one of my trading buddies said today, “watch the market go back up 150 points tomorrow”. I’ve said before, it’s the job of the market, to suck as many in on the wrong side of the trade before showing her hand.

I’ve still got a long position in QID, and will continue to manage it using the daily chart. There was an additional trade on the 60 minute chart today too. A gap over the base was followed by a classic pullback. An entry over the 4th candlestick down gave a risk of .30 for the trade. R = .30. The trade had a potential 4R return on a day trade. With the volume on that wide range green bar, I’d say the 200 ma in blue is a reasonable first target.

In other stocks, FCSX has found 50dma support. It’s on the radar for a quick bounce. VLO has earnings Monday.  Anticipation that they’ll be good may stop the current downtrend. Oil inventory numbers tomorrow should produce some action in that sector. MLM closed in a narrow range after seeing seven days of red.