Daily Watchlist - 29/1/10

Hi All,

Notes: DJI still in demand level. Trend line support is already broken on $DJI. Lower low already formed. I think this rally must really really be very powerful to go back to the uptrend channel. No trades were made by the TAZ rules. SMA10 has crossed down EMA30. Time to look for shorties.

For those trying out demand and supply, the TAZ scans might provide some opportunities? But I still don't know how to identify them properly...Need to come out with a project to identify which demand or supply level can give higher probability....

I'm not convinced of the New Moon and Full Moon so I'm starting to track it all over again.
16 Jan 10 - Market not at bottom, so I assume it's peak. So far, the peak coincide with New Moon.
30 Jan 10 - Full moon. Bottom near? It's just tomorrow!!! Maybe it will rally to the supply and got sell off again?

Feel free to comment or give suggestions to improve trading the setup.

Bulls Scan Results - no time to go into details with 4 - 9. Will study them when we meet up.

1. TEVA - 28/1/10: Bullish harami Doji + hammer. XLV hit demand and RS present. TEVA near demand zone and RS up. Possible entry at $56.38. Stop loss $55/75 Target $59.29.
2. UNH 28/1/10: Bullish engulfing. XLV hit demand and RS present. UNH near demand zone and RS up. Look to entry at $32.92. Stop loss $32.05. Target $35.90.
3. WLP: 29/1/10: Piercing pattern. RS up.

Bears Scan Results - with SMA200 criteria removed.

1. ACE

Review (Watchlist)
Bulls

1. UUP - 12/1/10: Broke out of downtrend channel resistance. 1st pullback to TAZ but now below EMA30. Will continue to monitor just to see where USD goes. Now $23.23. RS broke out downtrend resistance and strengthening.
2. BIIB -24/1/10: doji at resistance turn support. XLV and BIIB RS up. 25/1/10: BOT at $52.53. This trade is not following TAZ. I'm entering based on demand zone. Stop loss $51.87 Target $55.12. Now $53.58.

Bears

1. CHL - 6/1/10: doji at SMA50 resistance. Relative strength still down. IXP sector is also losing strength. Entry at $47.16. Stop loss $47.34. Target $45.13. 7/1/10: Did not trigger but CHL is in a nice downtrend. Will continue to monitor to see if price will go down from here. So far when price is near the downtrend resistance, it goes down fast. 12/1/10: Broke out of channel with huge volume. If price shoot pass SMA200, time to look for 1st pullback to TAZ. Now 50.00 - Hit supply and came down with market. Testing resistance turn support now. 24/1/10: Gap support at 46.35.Major demand at 44.70- 45.31. Imagine the last few supply was broken but the last supply produces a very good profit. Looks like Demand and Supply can profit if we don't get too many trades wrong and provided we make the risk very small in the zones.
2. TLT - 24/1/10: Bonds are moving up fast. In TAZ50 but RS is up. If market rebound from here, I think TLT will fall. It's in a very nice down channel now. Now $91.58. I will not record this in the P/L as this is traded off TAZ50 and not TAZ30. Will monitor progress separately. There is history of price piercing SMA50 and there is supply zone right above. Price gap down last night. I will only short if it is in the zone where supply exceed demand. Possible Entry $92.46 Stop loss $93.2 Target $89.14 Now $91.56.

Recycle Bin - Did not trigger.

1. GRMN - 28/1/10: Bullish engulfing. IYZ hit demand. GRMN RS up. Look to enter at $33.56 and $33.33. Stop loss $32.75 Target $37.01.
2. MRK - 28/1/10: Double spinning tops. XLV hit demand and RS present. MRK near demand zone and RS up. Look to enter $38.77 Stop loss $37.92 Target $41.35.

Net: +$813. (Details pls see table)