Wednesday, July 18, 2012

Market Update #2 7-18-12

I got in and out of my McDonald’s trade early this morning.  It went up from 0.39 to 0.45 and I was able to take profits.  In markets like this it’s best to scalp the upswing.  The playbook: buy on the dips and sell on the tips.  Just make sure you watch your moving averages, support and resistance lines.  That’s how I know when to get in and get out.  Once the price goes down to a main support level, I look to buy on upward strength.  When the price reaches a main resistance level, I sell on weakness.  That’s pretty much the plan. 

In fact as we speak, Walmart just came off a support level.  I may get in if it breaks through the $73 resistance again.  It broke through this morning and I saw it go up.  But as we know what goes up, must come down.  I don’t trust it right now yet because it only broke through that resistance level once and it tumbled back down underneath it.  The strength hasn’t been confirmed yet.


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