Posted on April 1st, 2008 at 7:39 AM

There are two counter-trend trades at play that are worth watching.

The first is a counter trend short of the Ten Year.  The ZN contract made a higher high in price on less momentum.  Double click on the chart to see the entire image.

Posted on April 2nd, 2008 at 9:31 AM

How does a new trend begin?  With a counter-trend.  After a counter-trend, the next trade in the trade progression is the XTL Breakout trade.  We are starting to see many XTL breakouts off of counter-trends.  A great example is SPWR.  You can see that it made a lower low in price with oscillator divergence.  Today, The XTL breakout trade was triggered.  I am long this stock on the XTL Breakout.  My current stop is at $72.90.  I will update this post if I move up my stop or if I am stopped out of the trade.

Posted on April 2nd, 2008 at 5:28 PM

Today there was a perfect set-up on the 3 minute S&P e-mini chart.  I was triggered short into this trade at 11:21 AM PST.  This first chart shows what the set-up looked like.  It also illustrates something that you always want to see when you are taking any trade.  Much more potential reward than risk.