My jump seat

Remember the "panic button" I was talking about? If tomorrow's GDP number disappoints, I am probably going to employ that technique.

The only bright spot

The bright spot is the bank index that continues its uptrend. As long as it rallies, my 10% upside target is achievable.

A shooting star

A shooting star is a bearish candlestick formation, which means the buyers exhaust. Tomorrow is the key; a down day says the uptrend is over and we might probably have seen the high of the year.

Shanghai A share is down 5%

Shanghai A share is down 5% after over 80% rally this year. Does it predict our little bull market near the end? Anyway, I am less confident than 8 hours ago.

Update: LEN

So is LEN, now up 9%.

Update: HOV

HOV still on the run, 20% in the pocket so far.

Final stage?

Look at the slope, I think we are at the middle of final blow off.

NASDAQ weekly

Lots of resistance upside, my target zone is 2050-2150.

LEN

LEN was added.

Filling the gap

The NASDAQ is about to fill the gap. A place to sell? I am not sure, since I can't think of a material reason to stop the bull.

SNDA

SNDA is breaking out now.

What's wrong with banks

The bank index lost steam after the breakout of the channel. This is a major concern for this bullish trend to continue.

HOV

HOV was added today.

Panic button

I think every trader should have a panic button in their mind. What does it mean? When the trend changes, traders should get out of the previous bets right away, even though some of the charts look still favorable to the previous trend. Lock in the profit or take the loss, just get out. The sooner the better.

I conclude this is a "must have" technique in a trading friendly market, like what we are in right now.

Update: newsletter performance

New high!

Jerry Favors

Do you remember Jerry Favors, the African American technician who often came on CNBC on Fridays back in late 90's? He is an export on Elliot Wave and Gann's theory, which I first heard of from him and till today I still know so little. During the horrible days of bursting bubble, everyone looked to him on Fridays hoping for a bullish prediction and searching for a possible bottom. He was like a guiding light. But after year 2000, he seemed disappeared from the television, also slowly from my memory. I did not know why CNBC no longer invited him, he might be a figure welcomed in a bear market.

Anyway, yesterday I googled his name and found out he has passed away in 06. I am sad not only we lost an excellent technician, but also lost a memory.

This is his page.

Update: SPWRA

Closed the position yesterday for a nice gain.

Crazy that is all I can say

This market is crazy, it can really go to extremes in a couple of days. We were plunging like 800 is the next target, now everything looks so rosy and breaking out!

Semi

This looks bullish, the worst is over?

Remember the "not bad looking" chart?

After today's strong bounce, it looks even better and it might pull everything up with it. In this market, anything is possible. And that is why I am taking loss on FAZ, TZA. I could always go back in if the thing does not play well.

Update: SPWRA

Now 18.3% in the pocket!

POT

Now 8.4% in the pocket.

Update: VMC

Now 6.8% in the pocket.

It this fails, the NASDAQ will look out below

A possible head and shoulder top pattern, which will certainly hurt the NASDAQ if it breaks down.

You ain't seen nothing yet

The bank index still shows a "not bad looking" chart. Wait till it breaks down the channel.

Transport

Breaking down from a double top. What is the old saying again?

Got punked

I got punked on AGU and MOS trades yesterday, otherwise they would have been perfect short setups. This is one thing bad about end of day trading, you can't see all the things that are going to happen the next trading day.

VMC

VMC is finally breaking down today.

APA

APA is also featured in my newsletter.

SPWRA

It has been featured in my newsletter for days.

True direction

As I predicted last week that the market would show its true color after the quarterly markup period. Before it had two options: flat or down. Now the downward is the only direction left.