Stock Market Commentary 11-22-10

Welcome Retail Traders to the RetailTrader.Net Stock Market and Technical analysis Commentary for the week of November 22, 2010.  As always we’re thrilled to bring you the finest in free trading education and resources anywhere on the web and we welcome any and all questions.  You can email them to info@retailtrader.net.

Last week we finally dropped below the 13 MA and this put an and to buying for me.  As I always say, you can’t tell the future, but I do know what the market has looked liked in the past when things go wrong, and trading below the 13 MA is definitely 1 way it can start.

Here’s the current chart of the S&P 500.

True, doesn’t look that bad here, but we’re not after looks.  The fact is that things can and sometimes do get a lot worse.  I read an interesting quote the other day by some famous hockey play (sorry famous hockey player whom I cannot remember) and the quote went like this: I don’t skate where the puck is, I skate where the puck is going to be.

Now, I am all for trading in the NOW, but part of trading in the NOW is about having a system set up that gives you signals in the NOW regarding what could possibly happen coming up.  It’s those possibilities that we’re trading.  So until we climb back above that 13 MA my buying is on hold.

So what do we do while buying is on hold?  Well, one thing we do is we look at winning trades from the past, or winning trades we may have missed and we see what we can learn from them and we can get inspired for the next market move.  Because seriously, what’s not inspiring about 1 quarter 200% moves like this one in URRE:

Notice the 13MA is above the 55MA before the breakout.  Notice the “sneakout”.  Notice how it stays above the 13MA for the first part of it’s run, an excellent sign of strength.  200% in a quarter.  That’s a great move.  Even if you only catch 1/2 of it or even 1/3 of it those are some great returns.

And while we’re at it there’s a little law of nature called you get more of what you focus on.  Focus on these winners everyday.  How they move.  How they trade.  What they look like when they’re working.  And guess what’s going to show up in your trading?  That’s right, more winners.

Until next time…The Market Is Yours!

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