Traders Corner   3 comments

The futures are flatly negative this morning, which is normal for an FOMC meeting day. It should be a low volume day, as traders await tomorrow’s FOMC results.

The McClellan Oscillator is lining up nicely for an overbought condition tomorrow (at 50, with 60 as overbought). However, I suspect today’s light activity may not give me the overbought signal I want. With the Williams %R already up to its 6th day of overbought, my time frame is getting more narrow (although it did go for 12 days in overbought territory in July).

The S&P 500 levels to watch today:

UPSIDE: 1698 (July’s high and the top of the Bollinger Bands), 1704 (September 16th’s high), and 1709 (August’s high and the all-time high).
LAST CLOSE: 1697.
DOWNSIDE: 1691 (September 16th’s low), 1687-1689 (3 data points and May’s high), 1684 (September 10th’s high), 1681-1682 (2 data points), 1678 (September 11th’s low), 1675 (September 10th’s low), 1673 (50 day moving average), 1672 (September 9th’s high and the 50 day moving average), 1664 (September 6th’s high), 1659 (September 5th’s high), 1658 (20 day moving average), 1651-1656 (4 data points and June’s high), 1640 (September 6th’s low), 1637 (September 4th’s low), 1633 (September 3rd’s low), 1627 (August’s low), 1618 (bottom of the Bollinger Bands), 1604 (July’s low), 1597 (April’s high), 1581 (May’s low), and 1576 (200 day moving average).

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Posted September 17, 2013 by edmcgon in Daytrading, Investing, Market Analysis

3 responses to “Traders Corner

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  1. I added a small position of SPXU at $20.00. I will either sell it at $20.23 today, or carry it into tomorrow when I expect we will get a bigger technical drop.

  2. Any opinions on DCM? I was considering a small position for a long-term dividend play.

    • The financials look clean, even though their revenues did go down last quarter (but they also increased their earnings by a comparable percentage). I like their business model too.

      It should be noted they only pay 2 dividends/year, and they decreased their dividend in the first half of 2013 (that may have been related to fluctuations in the yen vs. the dollar). Still, even with the decrease, their yield isn’t bad (about 3.9% based on the last payment and their current trading price). In the tech sector, they are comparable with the best on their dividend.

      I would question how much growth they will get with the aging Japanese market. However, that lack of growth could easily show up in a strengthening of the yen, which will increase your dividend over time. It’s a Catch-22 for the company, but it works to your advantage. I’d say go for it.

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