Thursday's Game Plan

SPY is clearly in a range with direction to be determined. Choppy action yesterday the levels ill be watching are 115 and 112.50. We are at the end of a quarter and fund managers wont be selling today so a choppy market is expected.




Longs:



GG: > 44.30 with an IPT being 45.



ALTR: A long coming into the day. Ill be looking for an entry with a preferable R/R as long as the market permits longs today.



SLW: > 27.10 it has all the room in the world.



HAL: A trade coming into the day with some room to go. IPT 34.10.



Shorts:

JPM > 38.30 level with an IPT being 37.60. This stock should only be considered when and if the market comes in.

Wednesday's Game Plan

SPY: SPY closed pretty strong yesterday after it bounced from the negative news. XLK bonced nicely yesterday and tech stocks followed. XLF also closed strong but ultimately closed right where it opened. QQQQ also showed strength and is likely to test the 50.50 resistance level sooner or later. Theres no major news coming out today except for the crude oil inventories.




Longs:



SLW: Closed strong yesterday after it reversed. Ill wait for the stock to test its resistance level and if it pauses there ill look for an entry.GDX closed really strong yesterday and gold stocks could shoot.



HAL: Another stock that closed strong yesterday after it reversed. Ill wait for the stock to test its resistance level and if it pauses there ill look for an entry. With IPT. 34.00.



GG: GDX closed really strong yesterday and if I get a good entry with preferable RR ill enter GG long with my IPT being resistance at 45.



ALTR: Strong stock with strong price action breaking up into multiyear highs. Ill moniter the price action on level 2 at the open to examine whether I should enter at the begining or wait for confirmation. When something is obvious it usually goes the other way and ill have to be cautious. SMH has a resistance level at 28.



Shorts:



JPM: Ill wait for the market to point its direction if its weak ill look for a favorable entry in JPM with a good R/R. My IPT would be 38.40 level.

Nawras IPO

Currently Nawras is undergoing an IPO, the question is whether its a good idea to participate. I believe it is, and my reasons are listed below:
1- This is the first major IPO since 2007 when Galfar was listed. Galfar rose 60% on its first day on an over optimistic market.

2- Small investors are still hurt and scared from what happened in 2008, people dont get over memories like that overnight. Professionals should not have any trouble owning this stock, which they will as the stock is fundamentally strong.

3- Nawras is the second major telecommunications here in Oman after Omantel, and given Omantels mediocre service. Nawras will overtake the company given that the obtain the sufficient funds.

4- Markets worldwide are poised for an up move that will probably end in December-Jan chart.

5- The MSM seems to have bottomed out (look at the first chart).

6- OTEL which is the only stock that competes with nawras seems to have formed a double bottom on the daily timeframe.

7- Buying Nawras would be going against the crowd, the crowd are wrong most of the time and professionals know that. The crowd thinks that this stock is too expensive. Given the market long term cycle I believe that we have bottomed out and now is the perfect time to buy and hold. I don’t believe this stock will explode to the upside after the IPO but I do believe it will go up slowly and steadily, it will pick up momentum as time passes as small investors come to the conclusion that they are missing out, they will enter and buy, till the stock is overbought. That’s when I intend to exit.

8- Nawras will be the trigger that sends the market higher after the IPO, I believe that IPO will do so well, that cash will come back into the MSM as the timing is perfect.

These are the reasons I expect Nawras to go up, but that doesn't mean it can't go down because it can. You have to plan for both sides as anything can happen.

QQQQ and SPY

Here we have two charts of the NADDAQ ETF (QQQQ) and the S&P500 ETF (SPY). Both charts are telling the same story that the coming days price action might help determine the market direction.

GDX

Here we have a chart of GDX, a gold ETF. As we cant see the stock broke out of its range and held above it. The the down move in the last hour could have been short covering. This stock is strong and unless it goes back below 54. I am bullish gold for now.

GLD Gold ETF

First off I would like to wish everyone a happy Eid, may god bless you all and your families.

Here we have a chart of GLD. This a technical look at the stock and how I am looking at it at the moment.

Technical Analysis Explained

Here we have a chart on DOW. This chart demonstrates my technical analysis on the stock.

QQQQ ETF

All the major ETF's closed strong on last friday, QQQQ in particular caught my eye. The ETF has closed above it 200 and 50 DMA and also closed above resistance which was at 46. I expect this major level to be restest then for the upward movie to continue as volume picks up in september after traders come back from their vacations.

Bullish Finviz Map

Heres what the finviz map looks like on a bullish day. It lights up green!