How to trade this week and the coming one - day trading on 2nd June 2010

The rally that started in second week of February had no correction for literally till 4th week of April. In my unholy grail track I found that twice there was strong manipulation to jack up the markets. If they had let the Feb first week fall continue a very good natural energy would have lifted the stocks anyway by early March.
Whenever there is manipulation technical indicators will also defy the logic.
In March there were few days when there was hardly any move and it was all done by a few very large players. When we try to build a house without solid foundations it sustains only for a while. Now we are paying the consequences. Too much of rush and bullishness followed by excessive fear and panic.

The question many people are asking when this fear will mitigate or when the fresh enthusiasm will reappear?
Seeing the natural energy patterns it will be on 8th of June.
Before that all that happens is merely spikes and some over sold market reaction. Buyers coming in big numbers may not be likely but slowly the momentum will be built up and next week should see some new moves.

Frankly I am keeping a watch on daily and micro intra day moves but now I am focusing on an intermediate 2/3 months term view because real gains are only possible if we know the wider frame. Thinking of very long term like years in current environment is only good for larger hedge and secure funds.

If you are an independent trader or smaller fund manager, the best is to focus on a period of 3/4 months for maximum.

I am sorry I could not post my blog earlier on 31st but 1st June had a huge slide simply for the negative energy of 31st and also a long holiday weekend.

This week:

This is a rather unpredictable week but just seeing the energy today 2nd June should prove to be positive after all.

3rd could either be very steep fall or a big spike but frankly it is negative and 4th appears as very volatile day. These are ideal days for day traders.

4th could be an interesting day to hunt for bargains on some of sectors and stocks that you understand.
I will post later a few sectors I am studying that I think will have major move from this week on.


TODAY 2nd JUNE Day Trading Key hours

11.30 am EST / 10.30 am CST
1.00 pm est / 12.00 CST

2.45 pm est / 1.45 pm cst CAUTION
3.40 pm est / 2.40 pm cst interesting


+ If you want I can provide a view on any sector, commodity or stock for a swing trade.

Please be specific and give me your brief analysis or understanding and I will give you a view. If we plan properly we can win. Please do not ever forget that in the markets technical indicators are not always the best way to enter even though they are useful. The real factor is proper timing. If you time improperly chances to win are lesser.

+ Notice a few sectors that were oversold are bouncing back.