Stock Trading Strategies -pt1

Daily Stock Report for Wednesday Morning, April 8

, 2010 pt1

The US stock market is still on a steady uptrend and 3 of the 4 indexes we follow were positive today with relatively low volatility as stocks continue their march upward on this current bull run we are seeing now.

The Dow30 closed with little change but had a positive bias to it today. The Nasdaq Composite up 0.3%, S&P 500 up 0.17% and the Russell 2000 was up 0.55% today. The VIX (CBOE Volatility Index) was at 16.10 and is not far from the 15.28 set almost two years ago before the financial sector crash caused the VIX to go to over 83 at the peak.

We should start looking for some sort of softer pullback with some of the technical indicators showing early signs of overbought conditions but that can stay at an extreme for weeks before actually seeing a reversal in trend.

We have to assume stocks will follow the current pattern that it has been in for 13 months until the pattern changes. And that pattern is a steady uptrend. The psychology to have in this market is not to be complacent and assume stocks will continue moving up. Be alert and flexible while you try to maximize our profits in your long positions and we should start looking for some selected short positions to balance out or hedge the long positions.

The Fed governors are starting to signal that the FOMC will start favoring the change of the famous language keeping interest rates low for an extended period of time to one that will increase rates to combat potential inflationary pressures, although that is unlikely anytime soon.

Scalp of the Day:

CPBY, China Info Security was the hot stock of the day and gave excellent short early from as high as $7.17 to below $6.50 for a potential profit over 10%.

*These are the kind of trade ideas we will be giving in the Trading Room, which we are in beta testing right now. Put your email address and name on website page to be notified.

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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