I thought yesterday that market use big positive gap up for selling into strength. And it happened. Big boys are clearing their holdings . For now at least.

I was surprised by strength in last hours of trading. I think it was caused by strength of Nasdaq (technology stocks). S&P500 and Dow lagged. And I think they will not go up with techs. Important sectors like Financial , Transportation or Retail are weak. They will drag index down. I do not believe that there are big buyers now on markets.

Financial sector ETF (symbol XLF) is in negative territory again. I am waiting for good shorting opportunity. Also Retail sector ETF (RTH) is weak.

I prepared ETF short setup for swing trade of Transportation ETF (IYT). It is now on important long term trendline support. If it will break it down, I want to short it.

I must also note that I entered VRSN long yesterday, but it was stopped out. Stock chart of VRSN shows classical example of failed breakout.

But retail shorts (GPI and LOW) I opened on Monday are working pretty well.

I will check if I will be able to find some new trade setup for today. In positive case I will post this stock pick here in my blog.

This entry was posted on Thursday, October 18th, 2007 at 12:35 pm and is filed under ETF trade setup, General, Stock market comment. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.