DreamTai 5.02.14 Beta test version released

[PIC: "A visit from Easter Bunny" by "aussiegall": http://www.flickr.com/photos/aussiegall/3431275844/ ]


Hi,

The beta test version of DreamTai (version 5.02.14) has been released.

Here is how to download it.

Start DreamTai and select a watchlist and click LOAD button and allow it to download the stock data.

You should see a message window pop up telling you about the new version and the link to download it.

You can also select File =>Messages from the menu to look at the message and get the download link.

This weekend, I will try to write an instruction manual on using the new version.

Please feel free to send feedback and suggestions for the next release.



[PIC: "John rescues bunny by SusanG2": http://www.flickr.com/photos/susang2/3073655290/ ]




[PIC:Bunny Snuggles: by Captainsubtle: http://www.flickr.com/photos/captainsubtle/4578686345/]

Stock market status as of September 26, 2010

The stock market trend is still up, as shown by the green color bar.

Stock market status as of September 19, 2010

The stock market is still in an uptrend, as shown by the green bars.

It just sliced through the first resistance level like a hot knife through butter.

Now, the next resistance level is around 10,790

Stock market status as of September 12, 2010

The Dow Jones index is still in an uptrend.
The two red lines show possible resistance lines from the prior peaks.

Let us see what happens.

Prior Peak Trading Strategy

When a stock reaches a prior high, it faces resistance. If it can not overcome that resistance, it will go down.

Some traders use this opportunity to short the stock. However, it is a short term trade and you must be careful, because you are trading AGAINST the trend.

The stop loss is placed at the top of the top of the peak.
To short the stock, wait till the stock reaches the previous high and wait for it to have a down day, that is, the stock closes lower.

The target is two times the initial risk. Sell half when the stock reaches two times the initial risk and have a trailing stop for the remaining half.


See the following examples.

Stock market status as of September 6, 2010

The Dow Jones Index has turned bullish.
Now, there are two possibe moves on the Daily charts.






One scenario is that DJIA is forming a triangle formed by line ABCD and line 45.
So, it could go upto point C, face resistance and then turn down. So, point C is a resistance point.

Another alternative is that the average is in a parallel channel formed by line 123 and line 456. So, it is also possible that the stock can go upto point 2 and face resistance there.

So, point C and Point 2 are two important resistance points.






Let us see what the weekly charts say about the market.
In the weekly chart, the stock is still in a narrow triangle range shown by the blue lines and we can know the trend only after it breaks out. It can break out above or below the triangle.
Notice that 10,000 is a very important resistance level. If the stock goes below 10,000 and breaks the triangle, then the long term trend is downwards.

Till the breakout occurs in the upwards or downwards direction, we will be in a choppy market.