Fed Meeting Notes That "Substaintial Economic Risk" Lead To Slashing Rates

Other than the Fed meeting notes that came out at 2:00pm, today was pretty uneventful on the whole. Before I get into the charts I just want to point out that I am becoming more and more short-term bearish. Let's look at the DOW for a change. As you can see we have make a small shooting star pattern that exactly touched the Fib fans lines today. Given that we have come so far so fast just in these last couple of days, unless we break above 9,250 then we could be heading down back to test the lows again in the coming months. One note though, there is a lot of speculation about this Obama stimulus package and how it will effect the economy, so getting to 9,250 could prove easy to accomplish. Regardless, let's all just watch and listen to the charts as our best source of trading signals.



As I had mentioned last night, (OIH) has been on a roll lately. Again while this is definitely over-bought to the upside, the volume leads us to look for a bearish candle pattern before we decide to go short on this stock.



(TLT) was a short that members and I closed out today at the open. As you may remember, when treasury rates were at zero this ETF went up almost parabolic in an unsustainable movement. As such, our short made nearly $10 in just 11 trading days!



(YUM) is one of my recent favorite shorts. Members got a chance to short this today and made just about 1% today alone on this short. As you can see in the chart below, (YUM) formed a very clean Head and Shoulders pattern which it has successfully re-traced back to its neckline. This is a clean and low-risk short trade which will be very profitable over the next couple of months.



As always I appreciate you stopping by and taking the time to read about my trading ideas. Please email me with any of your own ideas as most of my ideas this week came from readers. Happy Trading Ya'll!