Daily Form April 3, 2008

TRADE WITH FORM
Profit Patterns and Risk Management For Active Traders
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THURSDAY APRIL 3, 2008       06:53 ET

The Dow Jones Industrials Average (^DJI) spiked up towards, and encountered resistance near, the 200 day EMA. With Bernanke’s testimony to Congress keeping traders on their toes yesterday, and with the March employment data to be released tomorrow, the most likely scenario for today’s trading is that traders may well bide their time as they continue to ponder where we are in the recession, how much deeper it is likely to get, and when the "green shoots" of recovery are to be expected.


The broker/dealer sector (^XBD) formed a doji star as it anticipates the challenge of taking on levels of clear chart resistance. Further consolidation before rising to the challenge would not only be expected but also constructive for the sector.

Foreign exchange markets seem to have tempered their outright bearishness on the US currency and the exchange traded fund that tracks the Euro shows some clear signs of negative divergences.

TRADE OPPORTUNITIES/SETUPS FOR THURSDAY APRIL 3, 2008



The patterns identified below should be considered as indicative of eventual price direction in forthcoming trading sessions. None of these setups should be seen as specifically opportune for the current trading session.
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WFR  MEMC Electronic Materials  

MEMC Electronic Materials (WFR) is forming a bear flag.



BBY  Best Buy Co. Inc.  

Best Buy (BBY) met stiff resistance as it moved up towards the 200 day EMA.

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