Wrapping Wednesday

Took HANS today as soon as it broke yesterday's high which was the last tick yesterday. Made a buck and change on it and am very happy. Also played AFFX but that turned into an investment - it was only up about 20 cents all day from where I bought it and I decided to hold it overnight. I'm OK with this because I believe that the market is going up tomorrow based on the internals that I watch. More about that later.

I took AFFX as a result of something I saw on the 2-hour charts using a new theory that I'm working on. I'm not ready to divulge it yet because I think I might have just got lucky but if it pans out I'll share it with you. Yesterday, if you recall I mentioned that I would be watching AFFX, CTXS, and BRCM today. Of course I won't play a stock unless there is a viable set-up.

I played AFFX off a gap down set-up. As I mentioned it went up about 20 cents from where I played it. Had I picked up BRCM from its gap down set-up I would have made a little more. CTXS didn't set-up until late in the day and by that time I was busy with other things. So all three stocks set-up and all three went up from their set-ups on an overall down day but I want to make sure of my proposition before I share it with you. It might take a while because I don't like rushing these things. In the meantime if you look at the 2-hour charts on your own and figure it out for yourself - even better for you since it will be like you are discovering it on your own and that's not a bad thing.

For tomorrow, using the same approach, I'll be watching ATHR, SYMC, PTEN,and CRM for playable set-ups. As well as trying to find a spot to unload AFFX.

For tomorrow the up/down ratio is printing 41% which is nearly oversold territory, the new 20 day highs pulled back by a third to 724 and the new 20 day lows increased by 10% to 178. The three sisters and the proxy for the 22nd century all printed very strong white candles and only IWM printed red in the final hour. Put it all together and I see an up market tomorrow.

The magic coin has fallen on hard times having fallen to 33 and 26 because it missed today too. For tomorrow --- tails - bear market - I doubt it but, we'll see.