charts

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I have not purchased any FE stock yet. I am being very patient and continue to watch this energy stock. I am now looking for a continued pull back to the 34.00 - 36.00 range. The chart I am including in this post is a 2 year weekly. When or if the stochastics push down further I will buy . I will post if anything changes regarding FE.  This stock is a slow mover and I like it for my IRA. This is for a long term hold with the intention of reinvesting dividends.

New chart April 24 - 2010

If you click on the new chart I have posted on the right you can see that the yellow verticle bar shows the price move I was expecting in ATVI (You can also see that I was bullish in ATVI and charted this exact short term move before it transpired. Older post here and the chart is at the end of this post.) 

I often times sell out of a position before the move is over to lock in gains in a swing trade. A swing trade for me is a short 1 - 3 week (or even 2 - 3 day trade) so if I see profits and I am well within the majority of the move I take the trade off and look for other stocks to put my money.

I am posting this to illustrate that even though I have sold out of my swing positions in equities for my trading account I am still active in the market. I have no swing trades currently due to the overbought nature of the market. I expect a pull back and will not be buying any stocks on break outs. I buy pullbacks and we have not seen one in a long time.

However, there is always stuff to do in the market and I am trading commodity futures and the US dollar. Here is a screenshot of my last 24 hour swing trade in the dollar. The thinkorSwim ticker symbol is /DX.

I entered the trade yesterday overnight after a large drop in the price on Tuesday. Why did I take the trade? There looked to be a short-term bottoming pattern in the dollar. There is also a gap that formed on Sunday/Monday and I believe it will need to be filled between 80.80 -> 81.00.  So essentially I liked the risk reward so I purchased 2 contracts over the last couple trading sessions. (The green circles shows where I purchased the contracts).

What a week last week. We saw a huge reversal candlestick on the S&P on Thursday. I pulled the trigger on the last remaining swing trades I had in ATVI*, INTC, KAD and ETFC (Made very little in either of the last two).  But ATVI and INTC were nice quick trades. * I still think ATVI will go to the 12.50 - 13.00 range.  Click image to see my thoughts...

Going "all cash" in my trading account hardly happens with me, matter of fact it's the first time this year. My reason for going all cash? This market is so overbought and I thought that I should begin a new position. CASH. Yes folks, cash is a position. I do not have plans on shorting this raging bull of a market, but I do plan on sitting on my hands and my nice gains. (You can see my gains on the right side so far this year) I just need to see what the market does before I put on any more swing trades.

What will I do now?

Collect dividends in my Roth IRA. - Boring I know.
Add funds in IRA - Hope the market pulls back, I want to buy at cheaper  - Buying cheap is never boring.
Day trade quick daily scalps on the US dollar. (as usual)

I have just purchased a few shares of PFE for the long haul and will likely add more down the road. The above chart is a MONTLY chart.

I am plunking this stock into my IRA account and activating a DRIP program (Dividend Reinvestment Program).  If you qualify (and you probably do) then you seriously NEED a Roth IRA. You should at least look into it. It is after tax money that you deposit in your IRA account. The government (as of this blog post) does not tax capital gains or dividends in your roth. All gains such as dividends and profits from selling shares is yours to keep as long as you wait till the apropriate age or "seasoning period" to begin removing the funds for retirement.  Roth IRA info:

Note: By the way this is not an investment recommendation. You should do your own research and seek out a financial advisor before you invest any money in the stock market.

I mentioned before that my futures contract of choice to trade is the US dollar. Every night I go over my dollar related charts and begin to form a bias for the next trading session be it an afterhours or an intraday trade. I thought I would post a couple charts that are speaking to me this fine Saturday evening.

We are at an important level with the us dollar. If you look at my US dollar chart I mention that we will either break down or our current price is at support and we move higher*. However, before I make a trade I will need to see the price action as it hits this lower trend-line here at $80.00. Does it bounce, or break through?