[ Anthony S is a SpikeTrader from the United Kingdom. His work keeps earning him multiple performance bonuses, and he is on track to winning our Bank Robbery Award. Here he shares his market views ]

I am new to trading however I am starting to get some reasonable results. I have been very negative on these markets for some time and today I wake up in sunny England to find that my system is confronting me with lots of buy signals and it makes me feel nervous.

I have had my trading transformed by candlestick charting and David Weis. I have tried to keep things simple and have limited myself to a few large SP500 companies about 15 in all, and of those I trade no more than 6. I am trying to follow Alex’s recommendations to keep things simple while I learn my trade.

It looks as though the market will trade down this morning about 1-2 % which could push down many of the companies I look at, below some strong resistance levels and they could keep falling although the signals they have been giving out over the past 2 weeks leads me to think that they will just pop back up again.

I am a big fan of weekly charts, if you prefer daily you will have to look at these companies yourself on your timeframe.

AET

$28.00 is a strong support and resistance going back some time. The shares stand at 28.04 so how much will they go below this resistance? Then buy as they bounce back up to 30.00 then 34.00

WAG

This is not such a major sell as it needs to get nearer to the 26.00 support. However there has been a major sell off over the past 3 weeks and this has sent the shares below the previous resistance of 29.00, which is where they could spring back to.

AEE

These shares don’t move around wildly. However they are below the 25.00 support at 24.45. at this level they are a possible spring up to 27.00

There is also a descending triangle since January.

EMN

The 57.00 support resistance goes back a long way. The only downside is that over that last two years 57.00 is quite high.

You can also look at GD and ANF as other examples. All this leads me to conclude that this downtrend may not have much more to go.

Good trading

Anthony S