Is The Coast Clear After Gov't Resolution?

By Harlan Pyan

The following is an excerpt from today's premium update at All About Trends. Enjoy a free 15 day trial to receive daily stock picks, market analysis, & complete trading plan. Promo code: zen.

AFTER the NASDAQ comp has ran 200 points in 7 days? REALLY?

Yesterday we said:

That all said let's take a look at the daily index charts here. When you do ask yourself one question. Are we closer to support or resistance when it comes to the indexes.

So now it's all about what comes after…

So now here we are in post deal mode with yesterdays rumor of a deal looking to be the big part of the move. Its now all about the late to the party who needs certainty to feel comfortable. How can one feel “Comfortable” AFTER the NASDAQ has ran 200 points in seven days? Not us, but to each their own , who are we to judge. Hark? is that the peanuts guy yelling Peanuts? Get your Peanuts! guy in the stands screaming ?

Didn't we just talk how the face of uncertainty fear WAS the low risk technical trade? Look at where that was on the index charts and look at where we are now.

Whether we work higher here or not there isn't a lot of LOW RISK POH trades to be had here.

Technically speaking many names out there are nowhere near any sort of low risk entry point on the long side that we live for, sure there are a few (always is) but when we have to squint to see good looking patterns on the longside? That's the market talking to us via chart patterns, call it the Tanya Tucker “If It Don't Come Easy” Test. That is where we find ourselves on the longside here currently.

Where we also find ourselves is in potential “Change In Trend” Territory with a lot of names and others that have broken clearly defined uptrend channels to the downside that are currently in snap back rally bear channel mode here. A downside break of those little pink bear channels in the short side watch list is currently where are the chart pattern recognition action is because we trade what we see and that IS what we are seeing more of currently. none have really broken yet but the pattern is there so those will be high priority names going forward on the short side.

For those long only? Sit back for a bit, could be a few days or a few weeks tops before we see any magnitude of names we can work with on the longside. When we start seeing our longside watch list expand you'll know. don't forget, markets tend to top and bottom at this time of the year so should we sell off its going to be a “Set up The Pins” time so as to be able to bowl for strikes on the longside again. Wash rinse repeat, buy support, sell resistance,buy the dips and sell the rips are the cliche's as they say.