Buy Amazon @ 350 for 30 minutes expiration if it stays above
Buy Apple @ 520 for 30 minutes expiration if it stays above
Buy S&P 500 @ 1770 for 30 minutes expiration if it stays above
Risk: Stocks dropped below supports earlier, S&P 500's support @ 1770 not confirmed for today yet
Wait for S&P 500 to drop back & test 1770 before trading any signals to be safer
Results:
Buy S&P 500 @ 1770- invalid
S&P 500 dropped below 1770 & failed to break above again after Fed's Lockhart said: a taper 'could very well take place' next month.
We waited for 2nd rebounds @ supports for more confirmation as the first ones cannot confirm that they'll stay above & it failed our test by not staying above 1770 due to Lockhart's comment
This showed that stocks became weaker & not safe to trade but it's also possible to repeat previous market pattern & suddenly break above to go higher later
After S&P 500 failed our test, other signals should become invalid too as we mentioned "Wait for S&P 500 to drop back & test 1770 before trading any signals to be safer"
Buy Amazon @ 350- invalid
Amazon dropped below 350
Buy Apple @ 520- invalid/win at higher risk
Although Apple did not drop below 520, it became invalid & too risky to trade as it couldn't go any higher after S&P 500 failed to stay above
It also dropped below 520 later even after the new iPad Mini with Retina display is on sale starting today
Higher risk trade would be buying around 521 for it to expire around 522 @ 11:30am EST but not recommended & won't be considered a win in our records
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