Market Wrap

Apparently the market is not all that concerned that another Homebuilder has come forward and lowered their guidance for next quarter. LEN warned of a potential rocky road ahead, and they are the third company to do this in a short span of time. The main reason for the strong market movement today was the fact that Consumer Debt only grew 2.8% last month. The trend of debt was growing around 7 or 8% in the last few reports, so this news adds to the headache of trying to figure out the state of the economy. One minute it looks great, the next it looks terrible.

Next week we will kick off with a watchlist for the week going forward like we normally do every week. I am a little uneasy at the moment of the trend of the market and which side I am on, but by Monday I should arrive at a conclusion. Until then, have a fun filled weekend, and don't spend anytime thinking about trading or the market. Reset your brain power, and you will be totally refreshed by next week to pick up where you are leaving off.

I had a good topic to touch on this afternoon, but I have planned to save it until Monday. I have a short list of things I want to post about, but like I said...it's a short list. This means I am soliciting again...

To send me a suggestion on what you would like to read about. Click here to send me a quick e-mail and offer me a topic for suggestion. I will continue to post watchlists, talk about trades, and give you an occasional "insight" as to what I am thinking about, but what else would YOU like to hear? I'll give you the weekend to think it over, but give me a few ideas. You don't realize how hard it is to find a new topic two or three times a day, so your help is appreciated. I might not be able to reply to the e-mail you send, but I promise that I am reading them.

Again, have agreat weekend. Continue to do your part to leave comments and post frequently. Others appreciate your efforts as much as I do. See you next week!

I am amazed and frustrated that the Homebuilder stocks will not roll over and die.

Chuck from Orlando

Jeff,

How about covering your basic rules for drawing support and resistance lines. I think most know they don't reflect exact price levels, rather a range where traders squared off decisively in the past.

This is an area where there seems to be a bit of nuance and potential for trader bias - seeing what we want to see.

There seems to be a scale for support/resistance from mild to strong. When a stock has been trading up to a relative high and has a pull back, do we need to see a retest of that relative high to consider it a resistance level to be wary of?

More commonly when a stock is dropping (plenty of recent examples) it may fall through many areas where it paused (traded sideways or had pullbacks)on the way up. I guess I am positing that not all support/resistance levels are equal. Clearly some levels are more prominent in traders' minds than others.

So what about giving us some of your views and techniques on drawing support and resistance areas.

Also, suggested reading - Stiiky Stock Charts

Jeff H. Wash DC

Post a Comment
...I'M AN OPTION ADDICT...I'M AN OPTION ADDICT...I'M AN OPTION ADDICT... ...I'M AN OPTION ADDICT...I'M AN OPTION ADDICT...I'M AN OPTION ADDICT...

About me

  • I'm Option Addict
  • From Saratoga Springs, Utah, United States
  • I am a professional trader and an instructor for Investools. I've had relations with the markets for 9 years. Born in Concord, CA, but reside in Saratoga Springs, Utah. Father of THREE, Husband of one.
My profile

Prescriptions Here!

Other stuff

Blogarama - 
The Blog Directory
Directory of 
Finance/Business Blogs Finance 
blogs Top Blogs Finance Blogs - BlogCatalog Blog Directory