DreamTai Trading Software Blog: June 2006

Friday, June 30, 2006

What would YOU do ??

Prasan: Hello Sanjay : Some more stocks I want to share LNUX, AMKR, HOM, NXG, JSDA, IHR

Hi Prasan,

Thanks again for sharing these with the members.

All members, please feel free to add your comments, opinions and questions.

IHR

Beautiful uptrending stock with power ranking= 7.15
I would buy it

LNUX

No action at present.

Power ranking = -2.38
Not bearish enough
It should be below -5 to be significant

AMKR

No action at present.

Power ranking = -1
Not bearish enough
It should be below -5 to be significant

HOM

Bearish Power Ranking=12
May short it below 4.79
Currently it is just chopping around in a triangle pattern.

NXG

No action at present.
Power Ranking=2.04 which is weakly bullish

May Buy it after it crosses 4.82

JSDA

No action at present.

May short it below 8.42 after it goes below the triangle pattern

Power ranking is -4.3 which is not much. It should be below -5 to be significant

DreamTai Stock Trading Software: Friday, June 30, 2006

The Dow opened the session in a bullish fashion this morning and closed at 11,190 which is 217 points higher than the previous close at 10973

I would prefer to wait for a follow through and for it to break above 11,300 resistance before I can really call the trend bullish.

Thursday, June 29, 2006

What would YOU do ??

Prasan: Hello Sanjay: WHat are your thoughts about these stocks, EGY, QDEL, NSSC, TSM and TASR

Hi Prasan,
fIRST OF ALL, Thanks for sharing these stocks with us all.
I am stating here what I would do.
However none of these are based on gut feelings. These actions are what I would do using proper risk control with DreamTai software.

All members, please feel free to add your comments, opinions and questions.

1. EGY

BEAUTIFUL Stock !! WOWW!!!
This is a good bullish stock worth buying. It has potential to go up.
Power Ranking is 9
I would buy it.

2. QDEL

I would not prefer to trade it. It is flat and not volatile enough. We need some trending stocks which have action.

Power ranking is -2.
Neither bullish nor bearish

3. NSSC

I would short it if it falls below the support level of 8

It has power ranking of -11 which is quite negative and bearish.

4. TSM

I would rather not trade it.
It has power ranking of just -3.39 which is not a lot
Usually if a stock is having power ranking below -5, then it is really bearish.

TASR
I would short it if it falls below 7.28 support level.
It has power ranking of -5.9 which is bearish

Wednesday, June 28, 2006

DreamTai Stock Trading Software: Thursday, June 29, 2006

The Dow opened the session in weak fashion this morning, but eventually turned higher from lows and rallied steadily to the Close and closed the day with a 48.82 point gain to 10973 from the previous close of 10924

Again, at the risk of boring you,the Dow Jones Index is in a No Man's Land...Neither bullish, nor bearish. It is just chopping around.

To be bullish, the index has to cross the 11,200 to 11,300 line.
To be bearish, the index has to move back into the downward sloping bearish channel.

Let us wait and watch !!!

Tuesday, June 27, 2006

DreamTai Stock Trading Software: Wednesday, June 28, 2006

The Dow opened the session mildly bullish this morning, but quickly reversed from the highs of the session with a 120 point loss to 10924 from the previous close of 11045

As I have stated before, the Dow Jones Index is in a No Man's Land...Neither bullish, nor bearish. It is just chopping around.

It is frustating during choppy markets, but we just have to wait it out till the markets indicate a proper direction.

To be bullish, the index has to cross the 11,200 to 11,300 line.
To be bearish, the index has to move back into the downward sloping bearish channel.

DreamTai Stock Trading Software: Tuesday, June 27, 2006

The Dow traded quietly sideways throughout the session today.

It did rally late in the day to close the session with a 56 point gain at 11045 from the previous close of 10989

The movement of Dow is still sidewards and non trending.

Let us wait and see what happens.

Sunday, June 25, 2006

DreamTai Stock Trading Software: Monday, June 26, 2006

On Friday, the Dow Jones Index closed at 10,989.00 wich is down 30 points from the previous close at 11,019.11

The Dow Jones Index is in a No Man's Land...Neither bullish, nor bearish. It is just chopping around.

It is frustating during choppy markets, but we just have to wait it out till the markets indicate a proper direction.

The whipsaws that are occuring now are similar to what occured when the bubble burst in 2000. Stocks would go down, set up for short trades, start to go a little lower, and then the markets would get oversold or a news story would come out and suddenly they all turn higher and rally significantly - to the point that you have to cover your shorts for a losss.

To be bullish, the index has to cross the 11,200 to 11,300 line.
To be bearish, the index has to move back into the downward sloping bearish channel.

Let us wait and let the market tell us where it plans to go next.
Then we will make our move.
Till then, I plan to stay in cash.

Thursday, June 22, 2006

DreamTai Stock Trading Software: Thursday, June 22, 2006

The Dow opened the session in bullish fashion this morning and pushed steadily higher to the Close and ultimately ended the day with a 105 point gain at 11079 from the previous value at 10974.

If the index crosses the upward resistance at 11200- 11300 then the trend can turn bullish.
At present, even though the bars are green in color, the blue moving average line is still trending downwards.

So, the current trend is sideways...that is neither bullish nor bearish.
It is safer to stay in cash and not make new investments till we know where the trend is headed.

Wednesday, June 21, 2006

DreamTai Stock Trading Software: Wednesday, June 21, 2006

The Dow closed at 10974 which is 32 points greater than previous close at 10942

The Dow pulled back from yesterday's lows today, forming a clear range at the highs and had a 32 point gain in the process.
The index is winding up beneath the major upper channel line and looks to be gearing up for a potential breakout.

Also, this is the second price bar that is GREEN.

It is trying to break above the bearish channel where it was stuck for the past few weeks.

If it breaks above the bearish channel, then the trend will not be bearish. However, it can still not be bullish.
You see, the blue dotted moving average is still sloping downwards.

To be called BULLISH, the Dow has to cross the previous resistance level at 11,200 to 11,300 level.

Till then, it is neither bullish nor bearish.(Sidewards trend)
In a sidewards trend, the best strategy is to stay out of the market.

Now is the time to tighten your short selling stops and cover some of your short positions.

Let us wait and see if the Dow becomes powerful enough to cross the BEARISH channel or if it just goes down again back into the channel.

Monday, June 19, 2006

DreamTai Stock Trading Software: Tuesday, June 20, 2006

The Dow opened the session with a modest push above the upper channel line early in the day. However, the index pulled back quickly from the highs and eventually broke a nice head-and-shoulders pattern to the downside en route to steady decline the remainder of the session.

It closed at 10942 which is down 72 points from previous close at 11,014.55

One new thing is that the price bar turned Green today.

However, as long as it stays in the channel, the trend is bearish.
Let us see if Dow has the strength to cross the channel.

Sunday, June 18, 2006

DreamTai Stock Trading Software: Monday, June 19, 2006

The Dow traded quietly sideways throughout the session on Friday.
The index closed the day flat and looks to be gearing up for a future move.

The index closed at 11,014.55 on Friday which is 0.64 points below the previous close at 11015.19

Now it has reached the top of the channel. As long as Dow remains below the channel it is in a bearish mode.

Let us wait and see what happens.

Thursday, June 15, 2006

DreamTai Stock Trading Software: Friday, June 16, 2006

The Dow Jones Index bounced up today and closed at 11015 which is 198 points higher than the previous close of 10816

As long as the Dow is contained in the bearish channel, it is in bearish mode.

Just wanted to give you a reminder that Friday is "TRIPLE WITCHING". If you invest in stocks, bonds, options or markets like e-mini futures, they can be seriously effected by Triple Witching. (especially in the last few hours of the day)

It is very wise to not trade on these days because of the extreme potential for rapid reversals in price and trend. If you do want to trade, I highly urge you to proceed with much more caution and trade smaller positions than you usually do.

Below is a definition of "Triple Witching".

An event that occurs when the contracts for stock index futures, stock index options and stock options all expire on the same day. Triple witching days happen four times a year: the third Friday of March, June, September and December. This phenomenon is sometimes referred to as "Freaky Friday".

The final trading hour for that Friday is the hour known as triple witching. The markets are quite volatile in this final hour, as traders are quickly offsetting their option/futures orders before the closing bell. If you are a long-term investor, then triple witching has a minimal impact on you.

DreamTai Stock Trading Software: Thursday, June 15, 2006

The Dow closed the day with a nice rally to end the session with a nice 111 point gain.

It closed at 10817 which was 110 points above the previous close of 10706.

The Dow may make a bounce up from here, but as long as it is in the bearish downward channel and is below 11,200, it is in a bearish mode.

Here is a bullish stock pick for the adventerous.
Take care to jump out quickly with your profits if the market goes in the downward direction instead of a bounce.

Just wanted to give you a reminder that tomorrow is "TRIPLE WITCHING". If you invest in stocks, bonds, options or markets like e-mini futures, they can be seriously effected by Triple Witching. (especially in the last few hours of the day)

It is very wise to not trade on these days because of the extreme potential for rapid reversals in price and trend. If you do want to trade, I highly urge you to proceed with much more caution and trade smaller positions than you usually do.

Below is a definition of "Triple Witching".

An event that occurs when the contracts for stock index futures, stock index options and stock options all expire on the same day. Triple witching days happen four times a year: the third Friday of March, June, September and December. This phenomenon is sometimes referred to as "Freaky Friday".

The final trading hour for that Friday is the hour known as triple witching. The markets are quite volatile in this final hour, as traders are quickly offsetting their option/futures orders before the closing bell. If you are a long-term investor, then triple witching has a minimal impact on you.

(c) Dreamtai Stock Trading Software

Wednesday, June 14, 2006

DreamTai Stock Trading Software: Wednesday, June 14, 2006

The Dow closed today at 10,706 which is 86 points lower than the previous close of 10792
The index continues to push steadily lower along the chammel pattern.
As long as it is restrained in the channel, it is in Bearish mode.

Here is a stock pick for SHORT SELLING

Tuesday, June 13, 2006

DreamTai Stock Trading Software: Tuesday, June 13, 2006

Dow closed on Monday June 12 at 10,792
Previous close is 10,891.

The Dow traded sideways early in the day before getting a huge downside break late in the day, to close at 10,792 which is 99 points below previous close.

As shown in the figure, it is still in the downward sloping channel pattern.
As long as it remains in the channel and below 11,200, we can say that the trend is BEARISH.

Here are some stock picks for SHORT SELLING

Saturday, June 10, 2006

DreamTai Stock Trading Software: Monday, June 12, 2006

Previous close was 10,940

The Dow Jones Index opened the session in a bullish manner on Friday, but sold off from the highs to end the day with a 47 point loss at 10,891.

What will happen now ?

We do not know nor can we predict it. But we are certain of one thing, that is the current trend is bearish.
Now, as long as the Dow is below 11,200 which is the top of the channel pattern, the Dow is in a bearish trend.

The Dow may try to make a correction move upwards to touch the top of the channel. This week is the Options Expiration week.

Usually, the Options Expiry weeks are more volatile and the Dow Jones Stock index may suddenly and violently move up or down.
As long as the chart price bar color is Red and below the channel, it will be in a bearish mode.

This is the right time to short sell stocks or buy Put options.

This is ** DEFINITELY NOT ** the right time to buy [get long] in any stock positions.

Here are some stock picks to short sell.

Wednesday, June 07, 2006

DreamTai Stock Trading Software: Thursday, June 8, 2006

The Dow opened the session with a nice steady move higher this morning, but topped out at highs at about 11,075 before dropping 140 points to the Close.

The index eventually closed the day with a 71 point loss and is now holding just above 10,930.

At present, the Dow is moving in a downward sloping channel. As long as it remains below 11,200 ( that is the top of the channel ), we can safely assume that it will be having a bearish trend.

If you are long in any stock, it is safer to sell it now and book profits (or losses) before the stocks turn much lower.

This is the time to short sell stocks or to buy Put options.

(c) Dreamtai Stock Trading Software

Tuesday, June 06, 2006

DreamTai Stock Trading Software: Wednesday, June 7, 2006

Today the Dow Jones Index crossed below the 11,000 mark, which is a bearish sign.

Here are some stock picks for SHORT SELLING.