Bill Cara’s Blog for Sep 18, 2012
CTA Trading Desk Morning Report
[7:00am ET] Good morning, Geoff here.
Our basic trend indicators are saying that stocks are in an uptrend. The trend is your friend so until this changes, traders need to be long stocks.
The following 4 charts show different ways of viewing trend, but they all say the same thing; UP.
However, these charts from Sentimentrader.com show that a pause may be imminent:
As a trader, you need to have a plan and trade that plan. You need to get your risk levels to where you are comfortable and then decide how you are going to move forward. We are in an uptrend but a short-term decline looks probable and should one occur, it looks like it is time to buy the dips. If the decline is merely a pause like we are seeing now, breakouts should be bought in high relative strength stocks. The amount of stimulus coming into the market, or the perception of open ended stimulus, should be enough to keep stocks and commodities climbing for some time, so until our trend indicators tell us otherwise, we need to be trading from the long side, imo.
Have a great trading day!
Here are the 7:00am ET snapshots of the latest equity market trading results for Europe, and futures prices plus 5-minute charts of the futures for S&P 500, 30-year US Treasury Bond, US Dollar index, Gold and Crude Oil.
|Symbol||Name||Last Trade||Change||Related Info|
||26.92 (1.23%)||Components, Chart, More|
||27.20 (1.10%)||Components, Chart, More|
||37.99 (1.07%)||Components, Chart, More|
||69.17 (0.93%)||Components, Chart, More|
||1.10 (0.33%)||Components, Chart, More|
|^OSEAX||OSE All Share||506.04
||4.22 (0.83%)||Components, Chart, More|
||2.52 (0.74%)||Components, Chart, More|
||20.02 (0.31%)||Components, Chart, More|
||39.24 (0.67%)||Components, Chart, More|
||5.20 (0.54%)||Chart, More|
||3.87 (0.25%)||Chart, More|
|GD.AT||Athex Composite Share Price Index||725.33
||9.66 (1.31%)||Chart, More|
The team will check in during the day, reporting in the Discourse when there is a new entry.
Enjoy your day.