Stock Trader Alert For Week Of August 23 2010

http://www.guerillastocktrading.com/stock-trading/successful-trader-reveals-h... On Monday, August 16 2010 started out with bad news from Japan of a slowing GDP as weak growth in Japan added onto worries about the strength of the global economy.

This negative news of a slowing down global economy was partially offset as tech stocks lead to the upside on the news that Dell is buying 3Par Inc. for $1.13 billion. Acquisitions are seen as a bullish indicator for a sector for two reasons: first, the company doing the buying means they have cash on hand or a credit line available that enables them to make the acquisition-- second, the company being purchased by a larger company usually sees its stock spike as the purchase price of shares in the acquired company are made known. In this instance, Dell agreed to pay $18 per share for 3Par and the stock right away adjusted up to $18 for a quick 86% gain.

Important fundamental economic reports to be released in the near future are:

Aug 24 = Existing Home Sales

Aug 25 = New Home Sales

Aug 25 = Crude Inventories

Aug 26 = Initial Unemployment Claims

Aug 27 = GDP - Second Estimate Q2

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Education

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[StockTradingMaster]

@quadcatfly What I can't figure out is which is dumber, saying that institutional buying and selling as seen on charts don't reflect the market or you admitting that you are a Ouija board trader. I guess I'll just have to settle with the fact you're so dumb you tried to drown a fish.

[quadcatfly]

i can use Ouija board and predict stock movement even better. Technicals dont reflect the market, fundamentals dont affect the market, group psychology and public sentiments do.

[StockTradingMaster]

@JamJells I never said short the market here. In fact, I'd stay far away from shorting this market right now. What I said is that we are in a downtrend and we are most likely going to test the major support zone from 104.38 to 106. I do not recommend anyone shorts this market until we get a break below this support zone with at least one day confirmation. The reason is that we could see a bounce off this support zone.

[JamJells]

I feel you are right; that the SPY will dip and we will have a corrections or semi break down. Short the recent highs and all should be okay for the DT's here.