S&P
500 Index ($SPX)
Market Call™ for August 11, 1999
Contributed by Mark Seleznov, TrendTrader.com.
The purpose of this Market Call section is to
educate readers in technical analysis patterns and indicators. As with all investment
information, you need to research information and consult your financial advisor before
initiating any strategies that are contained in Market Call.
Also, you must realize that as with all trading strategies,
opinions can change quickly depending on market conditions and developments.
This column tries to present historical examples, potential set
ups, and examples of entry and exit strategies.
Also, you must realize that as with all trading strategies, opinions can
change quickly depending on market conditions and developments.
This column tries to present historical examples, potential set ups, and
examples of entry and exit strategies.
Time Frame
One question that every trader must deal with in trading or investing is
Time Frame.
The Time frame is more important than the indicator parameters used by a
trader or investor.
The focus of the column is on Day Trading. However, the same patterns,
indicators and moving average parameters may be used on 5-minute, 15,
minute, daily or weekly data.
The key is to be consistent in your trading style and risk reward parameters.
A Day Trading stop loss of average profit may be 1 to 2 points. A
longer-term trader may allow a stock to move 5 to 10 points against him
before receiving a new signal.
Our charts here are for 60 minute bars.
Let's look at the S&P 500 Index, $SPX.
Over the past few weeks, the trend in the S&P 500 Index has been down.
There have been a few attempts to rally, but each of those has been met
with selling.
Today, August 10, 1999, we saw the $SPX break a support of last Thursday
that many thought was a bottom.
When stocks break to new highs, they tend to move higher. When stocks take
out new lows, they tend to move lower.
Hopefully, a trend follower would be short or out of this declining market.
I would stay with the trend, which is down now.
Today's break took out a low that goes back to early April as well.
Resistance in the $SPX would be at 1300.
I would stay short, but close and go long if, and only if, the $SPX moves
above resistance at 1300.
This is not the time to be a hero and bottom fish.
Chart courtesy of
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Call Information
Mark A. Seleznov is a General
Securities Principal and Managing Partner of Trend Trader, LLC, a NASD, SIPC broker/dealer firm located in
Scottsdale, Arizona. A professional trader for over 25 years, Mark was a Market Maker on
the Philadelphia Stock Exchange, a Retail Registered Representative, and futures trader.
Mark is an author and recognized expert in equity Day Trading. He conducts seminars in
Equity Day Trading and offers his firm traders training and support. If his firm holds any
positions in the public companies he writes about, it will be noted at the bottom of his
article.
Market Calls is a daily syndicated column on trading by Mark A. Seleznov, Managing Partner
of Trend Trader,
LLC. For information on obtaining Market Calls for your web site,
newspapers, or publication, contact Trend Trader, LLC at 602-948-1146
Disclaimer: Trading in securities may not be suitable for
all individuals. Consult your broker or other professional to determine your suitability.
This is not an offer to buy or sell securities. The advice given above is of a general
nature and should not be taken as a recommendation to buy or sell the referenced security.
Copyright �
1998-2000 Tulips and Bears LLC.
All Rights Reserved. Republication of this material,
including posting to message boards or news groups,
without the prior written consent of Tulips and Bears LLC
is strictly prohibited.
Last modified: March 17, 2001
Published By Tulips and Bears
LLC
