'Trading is a process of observing the market's action until such a time you can find and form trading ideas and get involved.'**

Saturday, November 3, 2012

Friday's Trade Setup

After Thursday's jumper trade, the market somersaulted last Friday's trading day.

After the euphoria, the market turn ugly and made a turnaround.

Probably because of Friday, a profit taking days for the traders.

Likewise of the Apple stock (AAPL), it went on a selling spree the past days and that affected the whole market.

It's like where the Apple goes, so the market too.

For last Friday's trade setup, the best entry is to short the market where it starts the signal below the settlement price as shown from the arrow below.

The moving averages gave the confirmation when its starts to crosses over and descends below the previous close.

Exit the trade before the market close.