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Strategies & Market Trends : Strictly Buy and Sell Set Ups -- Ignore unavailable to you. Want to Upgrade?

To: profile_14 who wrote (6880)	1/4/2006 12:47:37 AM
From: chowder	Read Replies (1) \| Respond to of 13449

Re: SNDK ... I have been conversing with someone via PM about SNDK. Several weeks ago, I was asked how to use TA to help with a stock that had good fundamentals. This person believed strongly that the company was a legitimate long term hold, even looking out two years. At the time, I was just finishing my successful trades of SNDK on the short side, using the swing trade time frame. I knew it was time to cover the positions because the weekly chart was setting up a strong buy signal. In looking at the weekly chart, we had a rising 20 week moving average above a rising 40 week moving average with a comfortable distance between the two. This is a bullish alignment. When we have a bullish alignment, all pull backs into or near the rising 20 period moving average are buyable. We've seen a nice run since. Weekly chart: stockcharts.com[h,a]waclyiay[d20050103,20060103][pb20!b40][vc60]&pref=G Having said that, there are two types of long term trades, one is the macro long term, the other the micro long term. The micro long term will sell when price has a wide separation from the rising 20 period moving average. This type of trader will be selling tomorrow's open or sometime during the session. This type of trader will look to pick the position up again when price pulls back towards the rising 20 period moving average. You may have timed your PUTS very well. dabum