Stock Market Video Analysis for Week Ending 4/26/13

It is simple, when the 50 day moving average is rising, we give the benefit of doubt to buyers. It doesn’t mean we blindly buy pullbacks or fail to recognize when conditions appear to be dangerous. It also means that we don’t call for a top every time we see the markets pull back a few percent. Our job is to listen objectively to the market to recognize low risk opportunities when they reveal themselves to us and to manage risk on existing positions. That job is always the same, regardless of the headline of the day.

The video below takes a look at trends and key levels to be aware of in $SPY $QQQ $IWM $XLF $SMH $AAPL $TSLA Have a great weekend!
~Brian

ETF- April 26 Close

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  • james

    analysis is ok

  • http://twitter.com/NASTrading NAS Trading

    Good stuff! Inspired by this post I just examined the close-to-close return in SPY
    when a positive vs. negative 50MA slope exists, using a 1 to 10 day
    look-back parameter to identify slope.

    Using a 5 day look-back period to identify slope with the 50ma, the average return when positively sloped (had it been traded like a system) was about 2.6% per trade, and around negative 3% when the slope was negative or flat. It seems to work over a broad range of parameters.

    While I understood you were not suggesting to use it as a stand alone tool, evaluating the idea this way does seem to validate that the idea that it is a useful concept. Thanks for sharing

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