What I’m Looking at This Week – 22/10/12

Good morning!

During my weekend chart-fest, the first thing that caught my eye was not an equity chart – rather, it was in index or three.

The US equities I trade are all in either the Nasdaq 100 or the S&P500 so it was interesting to see both indices sitting on important lineage after Friday’s sell-off.

$NQ_F Nasdaq 100 – Daily

Fridays sell-off brought the Nasdaq smack on its upward trend line and firmly into short-term bearish territory as evidenced by the moving average ribbon at the bottom of the screen (I like a 90WMA, not that it matters. It’s not magic.) My thoughts here are that while the weekly chart is still in bullish territory – and it is – this is a buying opportunity.

Sadly, I’m maxxed out risk-wise at the moment, but if i wasn’t I’d be looking for previous break-out candidates that are setting-up technically for a retracement trade, or stocks that are displaying continuing strength in the face of adversity.

S&P500 – Daily $SPY $ES_F $SPX

The S&P500 paints a similar picture. On the weekly chart it looks like the index is consolidating above support which is bullish, but closer inspection of the daily chart shows that each test of 1470 is being met with slightly more resistance as you can see by each progressively slightly lower test. This daily chart suggests to me that momentum is to the downside and it wouldn’t surprise me to see it retracing back down to about 1360, where it comes into support and also the longer term upward sloping trend line.

Naturally, that isn’t what I hope as I’m long this market, but I’m prepared for whatever the market gives me.

ASX200 – Daily $EWA

And just to rub salt in my wounds for being horribly disloyal to my home shores – the ASX 200 is breaking out. Take that, traitorous leach. I am still holding some performers from before I decided to abscond, so this chart is a very welcome sight. It will be interesting to see what kind of impact any US bearishness has on our Aussie high spirits – I’m hoping (wash my mouth out with soap!) for Aussies everywhere that this is the beginning of something fun.

$PHM

$PHM was one of the few interesting charts that came up over the weekend. I love a breakout, especially after a good Stage 1 consolidation like this one. I also love that it managed to close strongly for the week in spite of a big down day on Friday.

Have a great trading week!