Daily Stock and Option Trading

DJIA - Daily Chart - Normal Scale Dow Jones Industrial Average is in the over bought level, but over bought doesn't mean over. Still showing strength in daily chart, but there is a divergence in weekly chart. SPX - Daily Chart - Normal Scale S&P500 showing a possible price and RSI divergence. Have a very major resistance at 1576. Have a support at 1474. A break below lower green trend line is a possible bearish case. NASDAQ - Daily Chart - Normal Scale NASDAQ is the weakest among the indices. Showing a divergence on both RSI and MACD. When bearish sentiment enter the market, this indices might have a bigger pullback. A break below the red trend line will be a good condition to set up a bearish trade.   Russel 2000 - Daily Chart - Normal Scale Russel 2000 is the leader of the last bullish move since September 2012. The chart also showing a divergence on RSI. Have to wait for several day to see if the price action agree to that divergence ...

QCOM - Weekly Chart - Logarithmic Scale On the weekly time frame, we have a divergence on price against MACD and RSI. There is a break below the up trend line at May 2012. QCOM - Daily Chart - Logarithmic Scale On the daily time frame, we still in up trend, but there is a possible divergence on progress. At this chart, I make several assumption about the price movement. At May 2012,  price break the up trend line and lead a price retracement. Price retracement might fold in ABC pattern Bearish move from March - July 2012 might the A wave. Bullish move from July 2012 until today and still on progress might be the B wave. I expect to trade the C wave. QCOM - Trade Setup - Daily Chart - Logarithmic Scale I expect the price break below the lower channel (red line). I will manage my risk - reward to enter this bearish trade plan on a retracement after the price break below the red line. My assumption on the C wave will be wrong if the B wave (bullish move...

TJX Weekly Chart (normal scale) TJX has been bullish since 2009... Since 13 September 2012, TJX seem to make a retracement move... From 9 November 2012 till 5 February 2013, TJX likely to make a retracement with an ABC pattern.. 1. Agressive Trader.     Might enter this level with a stop loss at 47.25... 2. Pattern Trader.     Might enter after price break red trendline... 3. Conservative Trader.     Might enter after price break the low at 9 November 2012 TJX Daily Chart (logarithmic scale) On daily chart, we observe price - MACD divergence and price - RSI divergence... On both scale drawing, seem that a break below red trendline might turn into a free fall...