It's Time...

Isaiah 45:2 "I will go before you and will level the mountains; I will break down gates of bronze and cut through bars of iron."

Time to get back into some trades, check out all 4 markets:

Looking at the charts above, starting in the upper left corner is the SPY. It just closed above the high of the low day and it closed above the 50 day moving average. I'm looking for this to continue from here up to it's recent high of 134 or it's prior, more significant high (green line).

Beside the SPY we have DIA, which actually broke it's more significant high (green line), and has bounced off it's 50 day moving average. Again, looking for this to get back up to it's most recent high of 124 ish.

Below DIA we have the IWM, which has been the overall leader in the recent month. It went a bit above it's more significant high (green line) and had a strong bounce off it's 50 day moving average as well. In addition, it (like the SPY and DIA) had a close above the high of the low day.

Last, in the bottom left corner, we've got the laggard - QQQ (nasdaq). It has been going sideways just under it's 50 day moving average. So, there's no signal for us to get bullish if we JUST rely on QQQ. However, since it's been such a laggard, we are going to rely on the other 3 markets to pull it up and go with a couple bullish trades.

We'll look at the first trade in this post - MDR. Here's the chart:

Sorry that this chart is marked up a bit, but I've had some trades in it over the past 6 months - it's a money maker! You can see from the chart we had a pullback and a close above the high of the low day. In addition check out the stochs - quite low and now looking like they are about to take off. The MACD's were low and looking like they are ready to go higher as well. Check out the higher lows in the blue circles. I also like the little uptick in volume and couple all of these factors with what the overall markets are doing and we have....

AN EDGE!!!!!!!

So, since there's an edge, it's time to trade. I bought an August 25 Call for $1.95. I'm only looking for it to go up to resistance above - the purple line - so this could be a very quick trade. If it drops for 2 consecutive closes below the low of the low day (i.e. yellow marked line), then I'll get out with a loss.

Time to get some profits again.