Top Stock Traders

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

Wednesday October 21,2009 , 10:35 pm EDT

The S&P500 sold off today to end at 1081. The S&P500 could have topped out near 1101. We continue to view low uptrend volumes as a signal this rally is into it's final stages. The breakdown in the last hour of the day could signal an important turning point in the market.

Close	USA	CAN	Ticker	ETF / Stock	Bottom Fishing	Breakout Watchlist	Break-out Stage 1	Stage 2	Stage 3
Oct 21	X		SDS	S&P500 Ultra short, Volume signal of 49 million shares. Base formed at $36-37		38.26
Oct 21	X		FAZ	Financials 3X Bear, Volume signal of 101 million shares. Base formed.		20.18
Oct 21	X		AAPL	Apple, hyperbolic rise					204.92
Oct 16	X		SKF	ProShares UltraShort financials. possible rounding bottom.	23.76
Oct 09	X		EWJ	Japan iShares. Top at $10.38 could signal a move to $9.10					9.95
Oct 09	X		SLW	Silver Wheaton, Uptrend, volumes are above average			13.86
Oct 09	X		GLD	Street Tracks Gold, 102 break-out , +volumes			102.84
Oct 21		X	HFD	Financials Bear,rounding bottom		11.02
Oct 21		X	HXD	TSX 60 Bear. Possible bottom put in at $12.86.volume indicates TSX 60 could reverse.	13.39
Oct 21		X	XIU	iShares TSX60, selling volumes out weight buying in the past 20 trading days. A possible top formed at $17.64					17.10

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.