1.  The $DIA, $QQQ, and $SPY are still in long term up trends so far.

  2. Only $IWM has broken the long term uptrend by closing below the 200 day. $IWM has been the weakest index and $QQQ has been the strongest. 

  3. $SPY bounced near the 100 day and 30 RSI Friday.

  4. $DIA and $IWM did not close below the 30 RSI Friday and are inside a high probability bounce zone. (I am long both of these going into Monday, I entered $IWM on Thursday and $DIA on Friday, my stop loss is a close below the 30 RSI).

  5. $IWM first high probability resistance area will be at the 200 day if it rallies next week.

  6. This is still a buy weakness sell strength market. Momentum and break out strategies to the upside are not profitable here.

  7. The $FB gap and go failed last weak making lower highs and lower lows day and losing the low of day gap up.

  8. The risk/reward favors being long here. This is a deep hole to short into and would be after the fact based on my market model.

  9. Top 100 Stocks

  10. 50 Day Bouncers

  11. Buy The Dip Is Now Sell The Rip

  12. Stock Ready List as of 08/02/2014




By Steve Burns

After a lifelong fascination with financial markets, Steve began investing in 1993 and trading his accounts in 1995. It was love at first trade. After more than 30 successful years in the markets, Steve now dedicates his time to helping traders improve their psychology and profitability. New Trader U offers an extensive blog resource with more than 4,000 original articles, online courses, and best-selling books covering various topics.