Action Points

The Weekend Review and Index Watch is finished and posted. I'll have the Trading Spreadsheet up later and have it linked here. Although I could be easily wrong, I think the market will make an intermediate term top sometime in October. Until the charts tell me otherwise, my primary focus will be buying the high volume breakouts and the long setups that pull back to objective support levels. I know I'll continue to trade around a few of the short setups, but I'll use very tight stops. If they work before I'm taken out, I'll take profits on the initial move down and I'll reset my stop near my entry to ensure a profitable trade.

Breakout Setups (Click on Symbol for Annotated Chart) AHII Animal Health Intl BEE Strategic Hotel & Resorts ABK Ambak Financial KHD KHD Humboldt PFAP Pacific Asia Petroleum KMT Kennametal FMCN Focus Media OPXT OpNext TSCM TheStreet.com BBEP BreitBurn Energy ACI Arch Coal PLLL Parallel Petroleum PNX Phoenix Companies PCX Patriot Coal ANR Alpha Natural Resources ARP American Reprographics AWC Alumina BARE Bare Escentuals BGP Borders Group BXG BlueGreen TWI Titan Intl SPR Spirit AeroSystems CCO Clear Channel SD Sandridge Energy SGI Silicon Graphics CENX Century Aluminum SRI Stoneridge CGX Consolidated Graphics SWKS Skyworks TEX Terex GMET GeoMet TPGI Thomas Group Properties CLNH Centerline Holdings CPX Complete Production Services CT Capital Trust DMAN DemandTec DRYS Dry Ships EVII EV Innovations FCSX FCStone Group LYG Lloyds TSB Group LYV Live Nation MBI MBIA NPO EnPro Industries VTRO Vertro WRES Warren Resources XTEX Crosstex Energy AB ...

Index Charts S&P 500 Index ($SPX) -- The key areas of S/R on the Intraday Chart are 1040 and 1010. On the Daily Chart , the upper trendline continues to hold the index down. Nasdaq 100 Index ($NDX) -- The Intraday Chart has a clear Broad Pattern, which typically indicates the market lacks intelligent sponsorship and is out of control. The Daily Chart continues to push up, and I'm yet to spot a crack in the action. On the Weekly Chart , the upper trendline was touched Friday and failed, which is normal action on the first test. Russell 2000 Index ($RUT) -- On the Weekly Chart , the next significant area of resistance is in the 620 area. Bank Index ($BKX) -- On the Weekly Chart , the index will find resistance in the 50 area with support at 43.75 and 40. Dow Transports Index ($TRAN) -- The H&S is still in play on the Monthly Chart and has significant resistance in the 4300 area. The Weekly Chart has strong support at 3400. Gold Index ($GOLD) -- The Daily Chart has...

The Weekend Update and the Index Watch is complete and posted. I didn't have time to do a full update this weekend because my wife has been in the hospital all week. I don't see much of a point posting the short setups anyway. The majority are failing and the one's that work have worked have been good for nothing more than short term scalps. I think it's a losing proposition to think it's possible to always trade the same setups. It's a concept that can be difficult to embrace, but it's imperative we focus our trade's around what's working. Going short at resistance isn't working. Buying pullbacks to objective support or the breakouts on increased volume is the way to go. Remember, skilled traders realize that certain setups are profitable in some environments. In others he avoids those same setups at all costs.

Breakout Setups (Click on Symbol for Annotated Chart) ANR Alpha Natural Resources ARP American Reprographics BXG Bluegreen C Citigroup PCX Patriot Coal ICO International Coal Group AIB Allied Irish Banks IRE Ireland Bank LYG Lloyds TSB Group GRB Gerber Scientific XTEX Crosstex Energy SD Sandridge Energy SGI Silicon Graphics FCE/A Forest City Enterprises CCO Clear Channel ALTH Allos Therapeutics ENZ Enzo BioChem TWI Titan Intl SRI Stoneridge AHII American Health Intl LYV Live Nation IDTI Integrated Device Tech TRMA Trico Marine Services NLST Netlist NPO EnPro Industries DMAN DemandTec MBI MBIA Inc MF MF Global MGI MoneyGram Intl MIC Macquire Infrastructure MITI Micromet MMR McMoran Exploration TEX Terex MPEL Melco Entertainment ULTR Ultrapetrol VMW VMware MTL Mechel Steel MTW Manitowoc DRYS Dry Ships FMCN Focus Media EVII EV Innovations SPR Spirit AeroSystems LQDT Liquidity Services FCSX FCStone Group AI Arlington Asset Investment KND Kindre...