Top Stock Traders

S&P500 Charts, 1950's, 60's, 1973-74 Bear Market, 1987 crash, 1990's, Double top 1999-2008

Saturday November 7, 2009 , 9:35 pm EDT

The S&P500 rallied Friday under light volumes to close at 1069 . Near term, the chart pattern suggests a head and shoulders topping formation. For the next 5-10 trading days we may see a push higher ?. Resistance is near 1080. The current topping action would be confirmed if the market fails to move higher on below average volume. 1019 is a key technical support level. If 1019 fails to hold, a drop to 950 is possible. Gold (GLD) continues to move higher.

Close	USA	CAN	Ticker	ETF / Stock	Bottom Fishing	Breakout Watchlist	Break-out Stage 1	Stage 2	Stage 3
Nov 6	X		SDS	S&P500 Ultra short. Retraced from a run to $41.90. Potential to run higher if market is topping.		38.72
Nov 6	X		GLD	Street Tracks Gold			107.43
Nov 6	X		PG	Procter and Gamble			61.04
Nov 6	X		MHS	Medco Heath Solutions			60.64
Nov 6	X		LIHR	Lihiur Gold			30.80
Nov 6	X		BR	Broadridge Financial		22.55
Nov 6		X	CEE	Centamin Egypt				2.40
Nov 6		X	LSG	Lakeshore Gold, volumes are 2X average. 4 million			3.90
Nov 6		X	HXD	TSX 60 Bear. Possible bottom put in at $12.86.TSX could mirror the S&P500 on reversal ?	13.82
Nov 6		X	IMG	IAMGold. Strong uptrend				17.78

Top Stock Traders uses technical analysis to pick stocks on the US and Canadian Markets. We research and code technical stock scans. Based on chart patterns, we pick potential set-ups for short-term trading. New traders can use this website to learn the basics of disciplined technical trading. Our intent is to help you become a better trader.

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Stock Phases define the 4 market cycles. Updated October 10,2009


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Table 1. We define the watch list as a stock or ETF nearing a local breakout or bottoming formation. The breakout is a stock closing above local resistance with higher volume as the confirmation signal. Stage 1-2 are stocks which have broken out and are moving higher. Stage 3 are stocks which are rising on the upper Bollinger Band and become more risky for a reversal. All stage 3 stocks are trending and could be nearing the target price. Stage 3 for traders could be opportunities to sell and take profits as the stock weakens. A stage 3 stock will decrease in upward momentum and move closer to the 20 day moving average. If a stage 3 stock crosses the 20 day moving average, it's time to get out with a stop-loss. All stocks/ETF's should have stop-losses reset daily to preserve downside risk.

BKO=Break-out. The BKO is a $ resistance point in the past 1 month to 1 year. A close 2-5% above the BKO would indicate a move higher. Volume is needed to confirm the break-out direction.

Category, "BF" or bottom fishing. Our picks are ETF's or stocks which are near the lower end of past trading ranges and are possibly due for a technical bounce. As a stock moves sharply lower, selling intensifies on volume. A set-up for a short term (5-10 day) trade is nearing. Slowly build positions and do not jump in with greater than 5% of your portfolio. Stop-losses are needed, or stay out of the trade.