Dynamic Trend Profile

1 March 2010 --

We enter a new month filled with hope of spring soon coming, better weather (hopefully) and slowly improved market conditions. The harsh winter has affected everything and everyone, including the psychology of the markets.

Based on the DT Rotational picture we suspect the market can hold up a little but for now or migrate more to the upside during this month, but we also see a reasonable odds of it oscillating some more before it drifts higher. It really is tricky to predict behavior right now as the US indices basically are stuck in the middle of a daily chart trading ranges in such as DIA, QQQQ, SPY.

We are still interested, as longer-term investors, in buying something this spring at reasonable prices-- say on any next major pullback that last 2 to 3 weeks-- if such a lower risk setup opportunity were to happen.

For now we tend to just be trading a little more aggressively buyers where we exercise more aggressive money management techniques to help us lock in any small profit either direction based on whatever the market is willing to give. We still are not picking up any hint yet of a stronger trendable market ready to return-- not in this middle range bound market-- so we are not expecting to catch bigger new moves right now.

I think it is important to point out, while we are not impressed with the markets right now, we also do Not expect the market to collapse in the near future. We think things are reasonably stable for now.

If the market does pull back in a stronger way, it will only be because of some overbought conditions that I can see setting up on some longer-term Stochastic settings as a possibility, for example. As we trade further into March we shall be able to start to predict with greater accuracy the coming bigger moves.

It looks it seems like we just need more time for the market to reveal the bigger opportunities.

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Monday, 1 March 2010 40 minutes after the open UPDATE:

I posted this in our real-time class... "For today, day-traders or short-term traders can buy something or maintain previous recent buys because it appears the market has day-trade upward bias sustainability today."

Tuesday, 2 March 2010, hour before the open Observations:

It appears the market is still stable and capable of holding its upward bias again. UPSIDE follow-through from yesterday, particularly the strongest recent stocks.

Some stocks showing a little upside potential premarket: GMCR, BUCY, CREE, JOYG, AMZN, CAAS, CAGC, VLTR, ASML, ROST

Some stocks we were asked what DT and Metastock charts showed and we responded with FAVORABLE impressions and comments yesterday morning: PCLN, ISRG, FDX, MA, IBM, BTE, WYNN, FDX.... other stocks on my list for reviewing yesterday and today: CMG, TYH, CLF, CLB, LRCX, NFLX, BIDU, WLT, EWZ, BHP, BID, NETL, GOLD, AUY, IAG, BLK, BEN, GS, GD, LMT, PRGO, CP, QLD, EL, ASH, EQIX, EAC, TX, VRX, ETM, LCAPA, BIG, CBRL, DTLR.

I commented that some commodities like NY Crude, Unleaded Gas, some metals like H.G. Copper patterns looked bullish which made me concerned about 3 to 6 month inflationary concerns... Commented on developing a plan how to trade 'stagflation' economy with high unemployment if it were to develop? Am a little concerned with energy prices being seasonally too strong in what is suppose to be a fragile economy. Something we will be watching more closely in coming months.

We updated the various world-wide stock market indexes to help us better compare and contrast recent economic behaviors to see if we could draw out any further insights of what might be coming. One thing I noticed is the German DAX looked somewhat still bullish. We may review this again today.

Would like to review these Groups today: Computer Storage Devices, Appliance and Tools, Computer Networks, Coal, some Retail, Auto & Truck Parts, Science and Technical Instrument Tech, some Semiconductors, some Mining.

We will start promptly at 9:15AM NYT and end around 11:15 to 11:30AM, so if you have questions, please ask them early! Looking forward to a great day. See you all soon!

Thursday, 4 March 2010 Update --

Current Early Morning Observations-- For the third day in a row the market appears to be holding its own. It is starting to feel some legitimacy to the recent bullishness going on here.

Day-Trading Dynamics Impressions-- Not sure, seems a little low volume, quiet first hour. It "feels" stable with a slight upward bias this morning. Still too early to see if market will drift lower before day is over and cover small gaps as it is inclined to do on Thursdays.

Overall Near-Term Update Impressions-- Still inclined to hold existing Long positions, and buy current March pullback(s), in general. Current stock market is not close enough yet to stronger daily resistance tests.

Friday, 5 March 2010 Update --

Current Early Morning Observations-- For the forth day in a row the market appears to be holding its own. It again feels bullishness tendencies are real.

Day-Trading Dynamics Impressions-- You probably will have narrow ranges because of the quiet, low volume, but if you pick a good entry you should be able to find a few good day trade buys today.

Overall Near-Term Update Impressions-- Still inclined to hold existing Long positions, and buy current March pullback(s), in general. Current stock market is not close enough yet to stronger daily resistance tests.

CAVEAT-- I am seeing slowly stochastic approaching on daily charts overbought conditions. That leads me to think if we do not breakout of range bound markets, the stock market might have a nice pullback later this month for a week or so. Nothing concrete yet but watching that particular indicator to be safe later this month.

Tuesday, 9 March 2010 Update --

Current Early Morning Observations-- As we said in our real-time class the market looks bullish again this morning.

Day-Trading Dynamics Impressions-- We continue to be more aggressive in out trading strategy to try and take advantage of what is a slow volume market yet one that is maintaining an upward bias. Today the Nasdaq stocks, in general, appear to be attracting more new money and are worthy of more focus.

Overall Near-Term Update Impressions-- Still inclined to hold existing Long positions, and buy current March pullback(s), in general. We are still attracted and having bullish tendencies.

CAVEAT-- If we get a pullback it might be something like options expiration in March that forces a little pullback or dip is all we are thinking could happen? While we have seen slowly stochastic approaching on daily charts overbought conditions it looks like that is not yet a concern of greater magnitude yet. It, therefore, feels like any pullback now that surprises the market will lead to a quicker and shallower buying opportunity.

Tuesday, 23 March 2010- The health bill passed and we did not get the selloff many thought might happen. The market appears to still have a little spunk left to it. The market continues to climb higher on a 'wall of worry' that is not showing any desire for a pullback.

Still noticing buy setups with manageable risk verses rewards and still realistic stop losses just in case...

All I know is if we do pullback someday, I still am inclined to buy something... AAPL and CLF are a couple that come to mind.

Wednesday 24 March -- BA and GE are two Dow stocks I would be comfortable owning a little on next pullback in March/April... with, of course, a properly defined risk/reward entry and stop loss strategy... maybe DIS and KO, too? (As a part of a diversified, not too much of any one stock in a longer-term investment type of account.) Once profitable, would then use a conservative trailing stop initially to protect any profits yet trying to avoid prematurely getting picked off.)

Thursday 25 March -- Below are stocks worthy of focus... do your own due diligence to determine if you agree:
AMZN ready to improve now again....
FLS looks like a legit daily breakout today...
LRCX should continue to improve near-term now, track for a pullback...
BEN looks very interesting for bulls, waiting for breakout confirmation...
CREE still has some legitimacy to this this strong trend...
V and MA look like little buy swing trade setups...
DECK looks still strong, great pullback buy candidate...
CLF has same impression as DECK...
BA same impression as DECK and CLF...
AAPL still has uptrend sustainability on pullbacks...
CME finally uptrending again, if it now stays above 300 on pullback...