Wednesday, October 19, 2011

Stock pick for 10/19/2011

Dear traders,
I like to write few words about market before today ideas. Last days were difficult (at least for me) because indices reached weekly resistance area. We can see that on the SPY weekly chart. Right now SPY is at 20sma and previous high resistance area. Pace is strong and chart doesn’t suggest that we will see strong pull back at this moment. If SPY will hold we can see buying continuation to another resistance and it isn’t far. Honestly I don’t have bias and I still think that we are in news market. Anytime any news can move market strong in any direction. Then we can forget what charts suggest or not. All that telling us that trading risk is higher and we can’t change that, but we can change our risk. For me that mean I will trade with very small risk and I will cut trade numbers until situation will be more clear. I don’t know how long that can be, but I know that only what we can do is to cut risk when market is risky. Also I like to note that cash is also position and sometime it will be smart to stay cash.

If anyone will have any question please let me know
All best
Ivica Juracic
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long ideas


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