Daily Form March 28, 2008

Profit Patterns and Risk Management For Active Traders
Trade successfully without having to be right about the underlying market direction
FRIDAY MARCH 28, 2008       06:41 ET

It was another roller coaster ride yesterday as the market moved erratically in response to divided opinions about the severity of the downturn and new rumors about Lehman Brothers. The S&P 500 (^SPC) still has to put in a determined run to break free from the descending trend line and on the other hand, at least on present showing, there does not appear to be great conviction amongst the bears about re-testing key support levels.

Some comfort will be taken in the bullish camp from the overnight performances in Asia where the Nikkei 225 moved ahead by 1.7% and the Hang Seng Index (^HSI) , with an advance 0f 2.7% looks ready to test overhead resistance at the 50 day EMA.

Several of the large tech stocks pulled back rather sharply and the mood was not helped by weaker than expected earnings and outlook from Oracle. The Nasdaq 100 (^NDX) gave back 2.2% yesterday and yesterday’s range covers the span between the 20 and 50 day EMA’s.


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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AA  Alcoa Inc.  

Alcoa (AA) looks vulnerable after recently recording a lower high and with a developing flag formation.

CRM  salesforce.com  

Salesforce.com (CRM) has pulled back to potential support at the convergence of two moving averages.