US Market Comments for 22-Sep-2011

AAPL @ 401.65 is gapping down, and the impulse systems signaling BLUE. Potential gap-fill pattern in short term. If AAPL fail to penetrate 401, it will bounce up. Potential SHORT candidate, but need further RED signal from impulse system. Force Index still indicating that bulls are still in the market.

AMD @ $6.11 bearish move break through resistance EMA8. AMD is below value zone with the decline in progress. MACD confirmed the bearish trend indication. Force index also confirming that more bears are controlling the market. Impulse systems signaling RED, allowing SHORT trade only. Price is below MA20, so the nearest resistance has been broken. Currently AMD is near lower Bollinger Band. If AMD stays near lower Bollinger Band, it indicates the strength of bears.

AMZN @ $223.63, impulse systems signaling RED, only short trade is allowed for the stock. The BB is shrinking, indicating reduced volatility. MACD confirmed the reversal in progress. Force index confirming some bulls are leaving. Good SHORT candidate, with stop loss at EMA8 just above the price. Next resistance is at MA20, which will make a perfect target for short trade.

BIDU @ $140.06, impulse systems signaling RED, only permitting short for the stock. BIDU broke range $150 to $140, currently hovering outside of lower Bollinger Band. The explosiveness of the move is clearly shown by the penetration of lower band. Price tends to close back inside the Bollinger Band, or the band will expand to cover the extreme move. Good for SHORT trade, just watch out for pullbacks. Recommended to add any short trades with writing put options, thus creating covered put position on BIDU.

GLD gap down to $168.33, impulse systems signaling RED. Currently, EMA8 is still above price acting as resistance. The EMA8 is in bearish move. GLD is about to decline further. Potential SHORT trade. MACD is still expanding, indicating there are still some steam in the bearish move. Yesterday trade is closed today for profit at $4.5/share. SHORT entry @ $174.5; target exit $170, stop loss @175.5. Risk/Reward: 1-to-4.

IWM gap down to $65.78, impulse signaling RED. MACD confirmes bearish trend is at work. Volatility is increasing. Potential breakout to the upside in the near term. Watch out for pullbacks. Right now, only SHORT trades are recommended for IWM.

MSFT gap down to 25.36, impulse signaling RED. MSFT is in the early stage 4, bearish run. The price is closing quickly to the lower Bollinger Band. Completed yesterday SHORT trade with entry @ $26.5; target @ 26.1; Stop loss @ $26.75. Risk/Reward: 1-to-2. Today recommendation: Short entry @ $25.36, target $24.79, stop loss @ $25.50, risk/reward: 1-to-4.

$VIX @ 39.79, at the upper side of the Bollinger Band. Sudden volatility spike confirms market panic in recent situation. Rich premiums for options sellers in the near future.


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