As Bullish as it can gets

The charts are very bullish indeed. Look at the S&P index. It looks like its going to make a new high very soon as it bounce off the top of the Ichimoku Clouds and is now aiming to clear the 200 day MA in its second attempt. Will it succeed? A break of the 200day Ma could see the index moving higher in a powerful move.

Click on charts to enlarge (S&P500)

Click on charts to enlarge (United Steel)

Click on charts to enlarge (YGE)

Click on charts to enlarge (AIG)

Click on charts to enlarge (BAC)

Always trade with stop loss.

Stocks looks ripe for further upside

Dear readers, no matter how bad the headlines may seemed at this moment, the charts are hinting at further upside for stocks as beaten down financial stocks are now bouncing off long term support with signs that longer term players are stepping in to purchase the stocks at these levels. These behaviors exhibited by the financials are very positive indication that the financial stocks have bottomed. Let's check out the weekly charts for stocks in this post (click on charts to enlarge).

Bank of America (weekly)

Citigroup (weekly)

Casino stocks are also breaking their immediate resistance level and are now free to move higher. The weekly  charts indicates that Las Vegas Sands (LVS) has broken out of the Ichimoku Clouds and is starting a new trend.

Solar stocks did not took part in any upside moves at all ever since the European debt crisis was reported in 2010. This sector is severely beaten down. We could see solar counters moving higher soon as oil prices looks to resume their uptrend and the fact that many of these solar stocks have bounced off long term support. It would be good risk to reward to initiate your long positions at these beaten down bargain prices.

Yingli Green Energy (weekly)

Renesola (weekly)

Do keep an eye on the financial stocks as i believe that we could see them finally waking up and leading the charge for the overall market in moving higher! Have a great week ahead.

Good opportunity to load up! Buy buy buy!

Dear readers, the news on the Greece default and that the world markets reacting on a sell-off had dominated headlines around the world this week. Despite how gloomy the news are currently, let's just focus on the price action. Interestingly, the charts are telling us to buy the dips. We should see higher stock prices to come in the weeks ahead. Solar and the financial stocks looks beaten down and could possibly have formed a bottom. Good time to load up. Gaming stocks are also on a roll.

S&P500

Las Vegas Sands

GT Solar

Yingli Green Energy

US Steel

American International Group (AIG)

Time to add to Renesolar (SOL)

It is time to buy SOL according to the chart patterns if it clears $9.48 next week. The weekly and daily charts are in "sync". Click on charts to enlarge.  
Target : $12.

Daily Chart - SOL

Weekly Chart - SOL

And now.. blowing up the last candlestick on weekly charts for SOL. Looks promising.. isn't it?

WFR - Trading off weekly and daily charts

MEMC Electronic Materials (WRF) is another stock which is on my watchlist. Look at its beautiful weekly chart. I am so very excited on this stock. WFR broke its downward trendline in end Jan 2011 on heavy volume and tested the top resistance of the Ichimoko Clouds before moving down to its support at the base of the clouds. A change of trend is the most lucrative to trade if one has the patience to wait it out. This stock would be a low risk buy on a retest of support.

As the famous great trader Richard Wyckoff would put it, this stock is currently in the midst of backing up to the "creek" after its initial rally. Wyckoff said that it is normal for an advance to be corrected with a reaction to the vicinity of the halfway point of the advance. Since the halfway point is above the creek, the back up is likely to be completed between the halfway point and the top of the creek. Wyckoff also said that we will need the combination of narrow price spreads and low volume on the back up in order to take up a long position. This will serve to be a primary buying opportunity.

Look for a reversal candlestick on the bottom channel of the trendline of daily chart of WFR. Only buy when it rebound... or else....

ReneSolar (SOL) - Trading off weekly and daily charts

I am currently stalking ReneSolar (SOL) using the weekly charts as a base. Let's first take a lot at ReneSolar (SOL) on the weekly charts. Stock is now bouncing off bottom channel of the uptrend line formed over 2 years. I missed the entry 2 weeks back and is now awaiting a second opportunity to build a position into the stock.

Having used the weekly charts to serve as a macro view of the overall long term trend of SOL, i will now turn my attention to daily chart of SOL to look for a good entry. For SOL, i will be looking for a reversal candlestick at around the 200day MA support. And if that fails, i will then get in at the next support via a reversal candlestick at the lower channel trendline of the symmetrical triangle.

Common mistake: Of cos the tendency is to try to anticipate the price at the support. If you are purely just looking at daily charts, its impossible to identify the area until the end of day when the candles are formed unless you are able to combine the 15min and hourly chart.

Having said that, trying to pick a bottom using 15min and hourly chart would result in many small losses over the long run but the reward ratio is definitely higher though. Personally, i think that traders using daily and weekly charts should refrain from looking at 15min charts or less as it will influence their decision to do quick trades and thus miss out the big swing.

Patience, my friends.