Stock Market Analysis 07-22-10

http://www.guerillastocktrading.com/stock-trading/the-stupidest-traders-make-... I have been receiving emails from subscribers asking me to give my thoughts on SPY and if I'm still short this market.

No doubt this is a tough market to earn money in whilst we have the kind of sideways trading we have had this week. But the last thing you want me to do is to take some type of balancing on both sides of the fence tactic like John Murphy or Arthur Hill have. You would like me to give you my belief of the stock market and how I am playing it right now, not a spectacle about how I don't give buy and sell recommendations and rather only comment on the technicals.

I declare if you are incapable of forming specific buy and sell thoughts based on your technical analysis, then what good is your technical analysis? The only logic for why we do technical analysis is to make money. If you are not making money with your technical analysis then it is rubbish to you, you might as well throw what you are doing in the garbage.

The Russell 2000 and the Nasdaq are leading the S&P 500 and the Dow down. This is a bearish sign for the wall street.

The S&P 500 is in a downtrend. It has strengthen from the strong downtrend we had a few days ago. Does this indicate our shorts are in danger? No. It is still a downtrend. Not as strong a downtrend as we like, but all the same a downtrend.

I am holding my short position on Consumer Services (SCC). SCC is in a very weak uptrend. The same logic applies to specific stocks as it does the key indices. It's still an uptrend, even though it is not as strong as I'd like.

I might have been writing a very different opinion to you today had it not been for Bernanke's comments today which resulted in a very big sell off going into market close. Bernanke established what us stock traders have known for weeks now, the economic recovery is in jeopardy.

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Education

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• stocktrading
• stockmarket

[nightlightview]

the SCC chart analysis at 2:25 looked just like SPXU looked all day today on 7/21 (S&P). Interesting that the projected SCC is a mild uptrend for 7/22 tomorrow. I'm short on 5 index ETF's and hoping for a really good day. I recently found the Think/Swim MACD "Awesome Oscillator" is super cool. Excellent video, Thanks a lot.

[StockTradingMaster]

@nightlightview At market open, trading is dominated by amateurs, as the day goes on, amateurs have to go to work. By the end of the trading day it is dominated by professional traders. Professionals often trade against amateurs which is why open and close are usually at opposite ends of candlestick. Your goal is to trade in the direction of the professionals as these are the institutions and they always win in the end. Use open and close to guage sentiment of amateurs vs professionals.

[Mustafoinc]

Good vid, thankx.