A lot of these basic materials have been popping up on our screener. With volume being light this week we must pick our trades to the tee. So I am always a big fan of trading coal stocks and with them CNBC cheerleaders talking about it and the charts looking ready to bust higher, I think we have some great trade setups for tomorrow. Now don't be scared for some of these have had there moves, but could move much higher as people try to get in before more buying in January. Now if you guys don't recall, Channel Guy Trader is the king of trading coal stocks. This is the same guy that told you to buy coal stocks when they were at prices that are close to half of what they are trading right now. Don't believe me? well do your research my friend because if you were a channeler( a follower of Channel Guy) you too would be in the green in these stocks. Will have charts posted tonight!!!!
The spy chart that I have posted below shows the forecast of future prices we have in store for us. As you can see right now we are in an upward channel that has a nice triangle consolidation forming inside of it right now. These patterns are usually bullish patterns( especially in this type of channel and environment), however this could change on a dime on news ect... If you look at the channel that we have drawn on the RSI you can notice that relative strength is in a bearish trending channel while price is in an upward motion. So we have negative divergence on the chart, but that could change if the RSI breaks the downward channel then we should have another burst of strength coming into the markets. However, if we fail to break the top channel and stay in the downward sloping channel, we will look to start taking profits on stocks that have moved up. Watching this will be key for intraday trading tomorrow as you can get a good short off on the fail breakout of the RSI channel, along with SPY being at a resistance level. Extra charts posted below the SPY chart. Also the nasdaq is at my channel resistance maybe look for another push higher in the a.m and then maybe some profit taking. This is one scenario we have in the cards for us tomorrow if we open higher.
SPY 15 Min Chart
The spy chart that I have posted below shows the forecast of future prices we have in store for us. As you can see right now we are in an upward channel that has a nice triangle consolidation forming inside of it right now. These patterns are usually bullish patterns( especially in this type of channel and environment), however this could change on a dime on news ect... If you look at the channel that we have drawn on the RSI you can notice that relative strength is in a bearish trending channel while price is in an upward motion. So we have negative divergence on the chart, but that could change if the RSI breaks the downward channel then we should have another burst of strength coming into the markets. However, if we fail to break the top channel and stay in the downward sloping channel, we will look to start taking profits on stocks that have moved up. Watching this will be key for intraday trading tomorrow as you can get a good short off on the fail breakout of the RSI channel, along with SPY being at a resistance level. Extra charts posted below the SPY chart. Also the nasdaq is at my channel resistance maybe look for another push higher in the a.m and then maybe some profit taking. This is one scenario we have in the cards for us tomorrow if we open higher.
SPY 15 Min Chart
ANR
PCX
BTU
MEE
ACI( Favorite )
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