The day after

EEM and most of the foreign index ETF's are bouncing off their 200 EMA. Now it's going to be like a pinball game, the 3 red lines I put on the above daily chart are areas of resistance and prices should bounce down from them. The trend on the daily chart has turned bearish, so the plan is to short at any areas of resistance from here.

DIA like the other index ETF's held on for an up day. I still think the daily 200 EMA is the target on the downside. I still have a short position in DIA, and am trailing my stop with the plan of covering at the 200 EMA.

Risk rears it's ugly head

As I noted in my post yesterday, all the index ETF's were showing weakness and were on the move lower. I also noted yesterday that it has been easy to make money on the dips. When things get to easy in trading, the crowd notices and things go to hell in a handbag quick. We as traders can always take advantage of that and try to anticipate the crowd and get in front of them. When I made my short trade yesterday I was doing just that, I had no idea that the markets would free fall today, but I had clues that the market might be heading down and I took action. Anyway, I covered 1/2 my short position in DIA at 122.68 for a 3.51 gain, I'm going to trail the rest. Hard to say what's going to happen tomorrow, it fells like the market can go down farther. One thing for sure is that volatility is back, I will try and get the set-ups posted here to take advantage of that.

Sold SLV

Sold out my position in SLV, it was white knuckle time when SLV opened up in the morning, saw my $7.28 gain turn into a .20 loss, hung with it and sold out in the afternoon. It was not easy to do, today's market action had more twists and turns than a rattlesnake on speed. SLV's trend is still bullish, right above the daily 20 EMA, the 60 min. trend is still positive. If the MACD on the 60 min. crosses up, then I will go long.

EEM at support

EEM is right at daily 13 EMA support and has formed a small double bottom on the 60 min. chart. If 60 min EMA's cross up around 118, I will go long again on the dip.

SPY, QQQQ, & DIA weakness

DIA has been weak compared to the other index's. As I indicated from my previous post, a break of the up trend line generated a short sale, and I went short at 126.19. Price did go up to the trend line, so tommorrow will tell if I was on the right side. If price does stabilize here and the 60 min EMA's cross up, I will cover my short and go long once again.

QQQQ has come down from a possible double top formation. Note the triple top on the 60 min. chart at resistance levels. 60 min EMA's have just barely crossed down. If we get early price weakness, prices could accelerate downward. As with SPY, price is at daily EMA support, so prices could find support and rally, just wanted to point out the case for a possible slide in prices and to take advantage of that.

SPY is coming off of resistance levels and has formed a bearish looking H & S pattern. Price looks to be coming down, but is still above daily EMA support levels, so another push up is not out of the question.

SLV long con't

Still long silver, looking to get out at trend line resistance(see above chart) near 149, or at next resistance level which is 152. Giving my stop loss a little wiggle room(daily 8 EMA) to be able to get to those levels.

DIA long and short set-up

From the bottom chart which is a 240 min. chart, you can see a clear uptrend with a nice uptrend line. If price closes below that trend line, it will have broke it's daily EMA support and price could accelerate to the downside. The higher probability trade is going long DIA near the present support levels. It has been easy to make money on the dips to support for a while, when the game gets to easy the market likes to give you a good slap up against the head to let you know that this really is a tough game to play. So I will be on my toes and be ready to react when the time comes.

EZA

EZA, which is the South Africa index ETF, is near resistance going back to April of 2006. I am watching for a breakdown to possibly get short.

Sold EEM

Sold EEM at 118.59 for a nice gain of $3.45. Will be watching for long entries on any pullback to support levels.

SLV long and possible QQQQ short

Still long SLV with stop loss at 140.26.

QQQQ could be forming a double-top and would be worth watching for a short entry on price breakdown.

SLV long

As I noted in my post yesterday, SLV was setting up for a possible short or long. The long set-up was triggered and I went long on the downtrend break near support levels. My long is at 139.20. Price has shot up right into trend line resistance(see 240 min. chart). I would exit long positions here if price can not penetrate resistance.

EEM long con't

Still long EEM, stop loss is just below trend line support at 117.12. EEM is trading at a all time high and is clearing it's channel, so the course of action is to trail your stop loss.

TLT long set-up

TLT which is the 20 year treasury bond EFT has turned up and cleared it's daily 50 EMA resistance. The set-up is to wait for a pullback to the daily EMA support which is around 88.00-88.37, then go long. Must be a little patient at this point.

SLV setup

SLV might be setting up as a possible long or short. As you can see on the 240 chart, SLV has a nice uptrend line going. Price has pulled back to the daily 13 EMA support, but also is in the process of forming a double-top on the daily chart. What to do? If price breaks down from the uptrend line, price will accelerate to the downside, and I will look for a short. If price breaks to the upside through the downtrend line shown on the 60 min. chart, I will go long.

EEM

I was stopped out of my DIA long at 127.21 for a gain of .71. After a sharp pullback DIA continued higher. Still have my EEM long which made a all-time high today, no visable resistance, so I'm trailing my stop. Most all foriegn ETF's such as EEM are extended and I'm waiting for a pullback to enter long.

Possible short set-up USO

Possible short set-up here with USO, price has slamed right into the daily 50 EMA resistance. A head and shoulders pattern has developed on the 60 min chart. Price has broken the H&S neckline and is testing the broken uptrendline extending back to 1/18. Looking at short set-up on a breakdown from the downtrendline from the 2/9 high.

DIA @ EEM longs

Still holding longs in both EEM and DIA, moved stop loss on EEM to around 116.50, moved SL on DIA to 127.16. Price action looks a little toppy, but we'll see what happens tomorrow.

Wed. 2/14 DIA long

Identified 125.50 as a zone of support(daily 21 EMA support). Went long on break of downtrendline and 8/21 EMA cross. As with EEM, DIA is at the top of channel resistance, would be getting defensive here. If you did'nt get long yesterday or early today, sit on your hands and wait for better entries to go long.

Wed 2/14 EEM long

Identified the 112.95 zone, which is the bottom of the upchannel, as a zone of support. Went long on the 60 8/21 EMA cross up at 115.14. I am holding until tommorrow to watch the price action. We are at the top of channel resistance, will sell 1/2 my position around current levels and trail the rest. If price stalls and starts to breakdown, will start to eye a short position.