US stock market summary --- 11/27/09

Today's market is very bearish. Nasadq had big gap down and once lost 61pts at the opening. It bounced off from the intermediate uptrend line and 50 daily MA.It closed below it daily 20EMA and closed right at its daily 20MA, with 37pts loss. $SPX broke below its daily 20EMA and closed slightly above its daily 20EMA, with 23 pts loss. $NASI,$NYSI and $Bpcompq issued new sell signal today.

The mechanical major top and bottom system is closed to issue a new sell signal, but not yet. The Super trend trading system is still at buy signal.

US stock market summary ---- 11/24/09

From 60 min chart, Nasadq is trading within the descending triangle. Breaking out from the descending triangle would be short term bullish. Breaking down from the descending triangle woule be short term bearish.
From 60 min chart, $SPX is traing with the range: 1085 to 1112. Breaking below 1085 would be short term bearish. Breaking above 1112 woule be short term bullish.

US stock market summary --- 11/23/09

Today's bounce broke above 2170 (for Nasadq) and 1100 (for $SPX), which showed some strength. But this still rule out the possibility that the bounce may be short-lived. The key is to watch if 2170 (for Nasadq) and 1100 (for $SPX) can hold or not when the market pullacks back to them tomorrow,

US stock market summary -- 11/22/09

Atough US market only had small loss Friday, the bearish market breadth are indicating more downside is ahead. On the other hand, both Nasdaq and $SPX bounced off a little bit from their daily 20EMA. From their 6o min chart, the MACD histogram is showing positive divergence. This means the market has higher chance to bounce Monday morning. Nasadq could first test 2160 and then 2170 if 2160 is taken out. $SPX could first test 1095, and then 1100 if 1095 is taken out.

My SuperTrend Trading System is still at buy signa. And my mechanical major top and bottom system is still at major buy signal. My short term system is still at short term sell signal as of 11/20 market close.

US stock market summary --- 11/19/09

Nasadq and $SPX's switched to short term downtrend this morning. My short term trading system generated a new short term sell signal at 8:00AM PT.

Is this just a short term correction or something bigger than that? Tomorrow will give better clue for that.

US stock market summary --- 11/18/09

From 60min Nasadq chart, the short term uptrend line was broken. Breaking below 2168 would confirm the short term trend change. Looking at 60 min and daily $SPX chart, breaking below 1100 would confirm the short term trend change.

US Stock Market Summary --- 11/16/09

The mechanical major top and bottom had a new buy today. This buy signal came late. Nasdaq and $SPX had breakout today, which is bullish. But CMF(20) of daily Nasadq and $SPX are still negative, which means money flow out. This is certainly not a bullish sign.

US stock market summary --- 11/12/09

Today's top could be the long-waited top. The recent rally came with lower volume. Today's sell-off came with increased volume. This is bearish sign. CMF(20) of daily Nasadq and $SPX went to negative territory today.

US stock market summary --- 11/11/09

$SPX is approaching important resistance at 1100 and Nasadq closed at important resistance of 2150. $Bpcompq and $Bpspx have not confirmed the recent rally. Bull should be careful at the current level. A reversal could happen any time soon.

US stock market summary --- 11/9/09

$Bpcompq is not confirming today's rally. My mid term view is neutral. Also, Dow has been strongest and made new high. $SPX is recently stronger than Nasdaq. This is not bullish sign.

My trade 1 position -- QID position, by following the mecahnical major top and bottom system was stopped out when daily 20MA of Nasdaq and $SPX were taken out. But, no new buy signal was produced from this system yet

US stock maket update --- 11/09/09, 7:00AM PT.

Market continued to show upside strength this morning. Nasadq and $SPX broke above their daily 20MA. Although the scenario of forming right shoulders of head and shoulders top pattern still have chance to be true, I changed my mid term view from bearish to neutral. My trade 1 position -- QID position by following the mechanical top and bottom system was stopped out this morning.

For Nasadq, its next upside target is 2150. For $SPX, its next upisde target is the broken intermediate term uptrend line, which is ~1185 now.

Stock Trading System Signal update --- 11/08/09

The mechnical major top and bottom system : Sell ( new sell signal was generated at close of 10/27/09) .

The short term trading system: Sell ( the new sell signal was generated on 10/22/09, 7AM, PT).

The SuperTrend trading sytem: Buy (the new buy signal was generated at close of 3/20/09) .

Trading positions:

Trade 1 (following the mehcanical top and bottom system) : long QID ( QID was purchased at $22.90 at 10/28/09 open). Gain/loss: -2.7%

Trade 2 (following the short term trading system): long SSO (SDS was purchased at $34.76 at 8:00AM PT of 11/5/09). Gain/loss: +1%

Trade 3 (following SuperTrend system signal): long QLD (QLD was purchased at $26.28 at 3/23/09 open). Gain/loss: +96%

Trade 4 (following my daily market analysis): No position.

US stock market summary --- 11/08/09

Looking at daily chart of Nasadq and $SPX, the recent rally came with lower volume. Also, NASI, $NYSI, $Bpcompq and $Bpspx all didn't confirm the recent rally. There's still higher chance the recent rally is forming the right shoulder of head and shoulders top pattern.

But if Nasadq and $SPX break above their daily 20MA decisively, I will change my mid term view to neutral, although breaking above 20MA still can not rule of the possibility of forming right shoulder of head and shoulders top pattern for Nasdaq.

As of close of 10/6/09, my mehcancial top and bottom system has not issused a new buy signal yet. The Super Trend Trading System is still at buy signal.

US stock market update --- 11/06/09 8:15 AM PT

Both Nasadq and $SPX were testing daily 20MA/20EMA and found some resistance there. As I stated last night, my mid term bearish view still holds as long as daily 20MA is not taken out decisively. Look at daily Nasadq chart, it could be in the process of forming right shoulder of head and shoulders top.

US stock market summary --- 11/5/09

Market was up strong today. My short term trading system issued a new short term buy signal at 8:00AM PT.
My mid term bearish view still hold as long as daily 20MA of Nasadq and $SPX are not taken out.

US stcok market morning update --- 11/5/09, 8:10AM PT.

My short term trading system generated a new short term buy signal at 8:00AM PT this morning.

US stock market morning update --- 11/5/09, 7:35AM PT.

11/5/09 7:35AM PT, the goods news from emplyment and consumer spending drove the market go up significantly this morning. Now $SPX is testing its daily 20EMA and Nasadq is testing its daily 20EMA and 50MA, which may provide some resistance. Although the market is in downtrend, I wouldn't add new shorts at current level until I see the bounce loses strength.

Stock trading systems: The mechnical major top and bottom system : Sell ( new sell signal was generated at close of 10/27/09)

The short term trading system: Sell ( the new sell signal was generated on 10/22/09, 7AM, PT).

The SuperTrend trading sytem: Buy (the new buy signal was generated at close of 3/20/09)

Trading positions:
Trade 1 (following the mehcanical top and bottom system) : long QID ( QID was purchased at $22.90 at 10/28/09 open). Gain/loss: +3.8%

Trade 2 (following the short term trading system): long SDS (SDS was purchased at $38.24 at 7:00AM PT of 10/22/09). Gain/loss: +5.8%

Trade 3 (following SuperTrend system signal): long QLD (QLD was purchased at $26.28 at 3/23/09 open). Gain/loss: +85%

Trade 4 (following my daily market analysis): Neutral (SDS was purchased at $40.18 and was stopped out at $39.93 today with a loss of 0.6%)

US stock market summary --- 11/4/09

The market had nice gain this morning. But both Nasadq and $SPX certainly found strong resistance at their daily 50EMA and 20EMA, respectively. In the last hour, they lost all the gain and closed with almost even. Daily $SPX showed a bearish candlestick: inverted hammer.

The market breadth is still negative. The bounce starting a few days ago could finish today. The market has higher chance to resume to go downside tomorrow morning.

A down day tomorrow could trigger my SuperTrend system to issue a new Sell signal.

US stock market update --- 11/4/09, 8:50AM PT

The stronger service industries and employment report drove stock market up this morning. Now, both $SPX and Nasdaq are testing their daily 20EMA.

US stock market summary --- 11/3/09

Sorry for posting late.

Today's market action was telling us the bounce is not done yet. Watch 1035 for $SPX and 2040 for Nasadq. As long as they are not taken out, bounce is not done.

For trading system signals, they are same as yersterday. No new signals were issued today.

US stock market morning update --- 11/3/09

For $SPX, breaking below 1035 would open door to test 1020 which I expect may provide temperary support.

Stock Trading System Signals update --- 11/2/09

Stock trading systems:

The mechnical major top and bottom system : Sell ( new sell signal was generated at close of 10/27/09)

The short term trading system: Sell ( the new sell signal was generated on 10/22/09, 7AM, PT).


The SuperTrend trading sytem: Buy (the new buy signal was generated at close of 3/20/09)


Trading positions: Trade 1 (following the mehcanical top and bottom system) : long QID ( QID was purchased at $22.90 at 10/28/09 open). Gain/loss: +4.7%


Trade 2 (following the short term trading system): long SDS (SDS was purchased at $38.24 at 7:00AM PT of 10/22/09). Gain/loss: +7%


Trade 3 (following SuperTrend system signal): long QLD (QLD was purchased at $26.28 at 3/23/09 open). Gain/loss: +83%


Trade 4 (following my daily market analysis): Long SDS (purchased SDS at 40.18). Gain/loss:+1.8%. Stop loss: 1053 of $SPX

US stock market summary --- 11/2/09

Today's bounce was weak. Nasadq went to as high as 2069 which was 1 point lower than 2070 which I emphaszied to watch in the morning update, before it reversed course. Looking at $Bpcompq and Bpspx, the breadth is very negative although the maket had small gain today.
My Supertrend Trading system has not issued a new Sell signal yet, but it's very close to do that.

US stock market morning update --- 11/2/09

The positive divergence formed on 60 min Nasadq and $SPX charts' MACD indicators played out. Nasdaq bounced off from 2040 and $SPX bounced off from 1035 strongly this morning. For Nasadq, watch the short term downtrend line (the black line in the 60 min Nasadq chart) which now stands at around 2070. If 2070 can not be taken out, the bounce will be weak. If 2070 is broken above, the bounce will have a little more leg before the market resumes downside action.

My SuperTrend System is close to issue a new Sell signal.

The Supertrend system I developed is close to issue a new Sell signal. It have been in buy signal since 3/20/09. From 3/09 until now, its performace is better than my mechanical major top and bottom system.

The intermediate term trend of $USD is up, which is bearish to US stock market

$USD broke above intermediate term downtrend on 10/27/09 and has been in intermediate term uptrend since then. This is bearish to US stock market.