13 Apr the Daily Stock Report

The buyers still kept the market up even after a negative opening of over 100 points on the Dow30. This is a very bullish sign that the market recovered and actually moved into the positive side. Although we could be approaching some sort of top next week, the pattern has been continuing with steady uptrends in the healthy stock charts like those in the wish list and many of the stocks in the stock list (table) below. It looks like the market will continue this uptrend for now but as with any intermediate trade positions, set trailing stop losses.

Remember what you want if you are long is the stock price to be steady in the same pattern and stay in the uptrend channel that is often discussed in the videos attached to The Daily Stock Report. When stocks move out of that trend channel, it is often that the break from it, especially on the downside, is signaling the new trend in character or sentiment with investors.

The banking stocks had big moves up today for the 2nd day in a row with 18% in BAC, Bank of America, 11.5% for KEY, Keybank, 15.2% for STI, Suntrust Bank, and 38% for C, Citibank. Although these won’t continue these kind of moves, it is a strong signal that the trend will continue to be up in a general way.

The intermediate long period takes a little more risk with a little lower odds of success but the reward is high if we stay with stock charts that look and act well like those below. It looks really late to jump in with the banking stocks on the long side now but should be monitored for some entry point to go long if a pullback occurs .

So the bull run continues for now.

Oil index closed down 4.1% to close at $49.89. This index continues to have slightly lower lows and lower highs.

Intermediate Trade Positions: The following stocks all look like good intermediate trade stock ideas and any one of them would be worth a small long position.

SWKS, Skyworks (semiconductor) 4-8-09 report
RADS, Radiant Systems (SWING) 4-8-09 report
AMZN, Amazon.com 4-8-09 report
IBM, International Business Machines 4-8-09 report
UTX, United Technologies
MA, Mastercard
AAPL, Apple Computer
BIDU, Baidu
BMC, BMC Software
STEC, Stec
SY, Sybase
RIMM, Research in Motion
DIOD, Diodes (semiconductor)
FCX, Freeport McMoran
BR, Broadridge
GS, Goldman Sachs
CMG, Chipotle Mexican Grill (McDonalds subsidiary)
TLM, Talisman Energy (Oil & Gas)
PBR, Petrobras
FXI, Xinhua China 25 ETF
SMH, Semiconductor ETF

Swing Trades: New Ideas: None

Day Traders/Intraday stock ideas: Intraday trading was outstanding today and should continue this week. The selling in stocks at the open gave a surprising drop but the buyers turned around most stocks today into the green toward the last half of the session. The drop and pop should be the most successful intraday trading technique with the pop that should be purchased long. When you see the market correcting after an extended uptrend like we are having now, the first down days provide the best drop and pop which should be traded on the long side at first. Hypothetically speaking, if the market turns over and continues down, you should wait longer and longer for stocks to drop in the morning then look for the pop again but consider going short if the market acts very negative for 3-4 days after that uptrend. Stay on the long side on the pop but don’t buy late in day. Look for good intraday trades in FSLR, ICE, BLK, CME, POT, MON, MOS, AMZN, AAPL, BIDU, USB, WFC, JPM and any high volume, high volatility stocks. You can try using various software programs within your brokerage firm’s trading platform that could provide you the highest beta stocks in order and review those on daily and intraday charts. The stocks above are just a few of them and this list often changes.

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REPEAT: Many of you have emailed me with questions about not having the $25,000 to do intraday trading. You can have 3 intraday trades in a 5 business day rolling period without having $25,000 in your account. Above $25,000 you can do unlimited intraday trades as long as your account equity is above $25k. You can have swing trades like we have been having the last 2 weeks and make a smaller amount of money, let’s say $10,000, to build up with swing trades.

Thoughts: Keep steady, calm, decisive, aggressive. Have no fear and no greed. Keep looking at what to be doing next in a calm manner. Don’t focus on the past or beat yourself up what you did or didn’t do or what you should have done. Just keep playing the next shot, which in this business your next shot could be just sitting on the sideline.

Thoughts: Best odds only, be decisive, aggressive, mentally flexible, stay in position size, don’t overtrade and wait a little longer to buy and wait a little longer to sell. You will find that will make you more money on your trades. Trade what you see, not what you hope for. Intermediate and swing trades are really important to have trailing stop losses set.
Don’t trade unless the setup is there for you, then use the charts to tell you when the odds are heavily in your favor. Don’t force anything to work for you, let the setups develop and then take advantage of that. Be patient. Stay in position sizes without letting any intraday trade represent no more than 10-15% of your total account value. As you build your account, your position size percentage should get smaller and smaller to lower your risk.

Have a great day and I’ll talk to you this tomorrow.