Day Trading Techniques Pt1

Daily Stock Report for Friday Morning, February 5

, 2010 pt1

Stocks had a brutal day on the downside today with the opening futures clearly signaling that a down day was in store for Thursday. The same worries of several European countries debt caused the dollar to spike against the Euro and jobless claims were the main culprits for the drop.

The Dow30 was down 2.6%, Nasdaq Composite down 3.1% and S&P-500 was down 3.1% today and todays drops brings us to wonder if this is just a pullback within the bull run we have seen since March 10, 2009 or we are starting an overall downtrend.

Whether it is a downtrend or just a pullback within an uptrend, either way we should get a tradable rally to go long again on this bottom, which is likely to start again in the next few days. What we had expected was a couple more up days but the tell tale sign was the reversal of the uptrend of many of our stock picks on Wednesday that caused us to take profits on many stocks on Wednesday, some just in case.

Stocks corrected so much that we ended up breaking even on many stocks with some small profits sold at the open. The clue that we had this morning (Thursday) was the Dow futures was quite negative and usually the best time to capture profits from long positions is to sell at the market opening, which is a common practice used when managing a large number of stocks.

Stocks are almost ready to re-purchase again if you stopped or sold out the last two sessions but it is safer to see if stocks make a lower low than was made last Friday. My best guess is tomorrows low on these same stocks is likely a good place to start buying long again. Look for a drop at the opening to get better prices for any stocks you want to buy long and we should see some attempted rebound Friday.

Mitch King

www.TradeStocksAmerica.com

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Mitch King is the founder of TradeStocksAmerica.com. All material presented herein is believed to be reliable but we cannot attest to its accuracy. All material represents the opinions of Mitch King. Investment recommendations may change without notice and readers are urged to check with their investment counselors before making any investment decisions. Opinions expressed in these reports may change without prior notice. Mitch King and/or the staff at TradeStocksAmerica.com may or may not have investments in any stocks cited above before or after this newsletter is prepared. Use the stock table above as a model portfolio of ideas that look attractive at the time of the writing. Comments can be hypothetical in nature. Opinions expressed in these reports may change without prior notice. Disclaimer - Stock investing or stock trading has large potential rewards, but also large potential risk. There is risk of loss as well as the opportunity for gain when buying or selling stocks, bonds, option contracts or engaging in any strategy listed in the Daily Stock Report, The Wizard Training Course, The Trading Room and our seminar or workshops. You must be aware of the risks and be willing to accept the risks when investing or trading in any financial markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell stocks. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.

by: Mitch King

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