Technically, I should be waiting until this weekend to post weekly index charts, but these look so beautiful (so far) that I couldn’t resist.

With the exception of the Nasdaq and Russel (technology & small cap respectively) the weekly charts of the Dow and S&P are making new all time highs as well as new momentum highs – positive signs. The charts are beautiful for the bulls who have been holding.

Remember the major economic reports tomorrow which – one TV analyst said today – could swing the Dow Up OR Down 200 points.

Here is tomorrow’s expected economic action (calendar) from Briefing.com:

It’s – of course – options expiration Friday. What a great time to be a trader!

Today’s action was nothing less than stellar.  The gap up in the morning led to a bear-flag like correction to the moving average (consolidation) and then it was quite literally off to the races when the Fed Beige Book hit the newswires.

First, two index charts showing price trapped (for now) below the rising 20 period moving average after a bounce off support:

It will be interesting to play the resolution of the ‘box’ in which these two indexes are trapped .

As a bonus, here are two potential impulse buy trades:  Google and Apple.  Remember an impulse buy occurs after a new momentum high is made (along with a new price high) and the price retraces back to the rising 20 period moving average.  You play for a small target, being the most recent price high and place your stop a bit below (depending on your risk tolerance) the rising moving average.  Study these charts:

Here is a bonus chart of PotAsh, a company with a stock in a strong uptrend that has doubled in price since last October and tripled in price since December 2005!

Look at this runaway monster on the weekly chart:

For all of you who love strong updays, here is the polar opposite picture of the industry groups from StockCharts.  Remember, every industry was down – most by 1% – yesterday.  Today, we see the exact opposite picture.

By the way, if you want to see red, look no further than the Bond Yields.  My, this is an inverse of the last few trading sessions:

Remember, options expiration is upon us, so consider your strategies and decide how much (or if all) you wish to trade this wild market.

Here are a quick charts of the Indexes:

• Holding the Bottom Bollinger Band
• Lurking above the 50 period EMA
• Market making new momentum lows
• Stochastic registering a buy signal
• Volume increased today on the sell-day… distribution
• Clear momentum divergence now unwinding
• Support should be 13,200 until it fails

• Has not reached bottom of Bollinger Band in months
• Market recently bounced at rising 50 period EMA
• We almost registered a stochastic buy signal
• Momentum not making new lows and not clearly diverging
• Price is clearly in a trading range now with support at 2,540 until broken

• Market making new momentum lows
• Price broke the 50 period MA – are small caps in trouble?
• Nearing stochastic buy also
• Price almost made a new momentum high recently – no price divergence
• Price is also in a trading range – recently experienced a failed breakout (up)
• Support should be near 810

Please see the Market Summary at StockCharts.com.  I could do a repost of an earlier blog entry where I pulled each segment of the daily action and everything was ‘in the red’ except bond yeilds.  This was the (almost) exact same scenario as occurred Thursday, June 7th.  Many such ominous down days (where bears take a swipe at everything) cannot be good for the overall market unless buyers find value at lower prices where everything is ‘wounded’.

Here is a teaser of the StockCharts page (each Industry was down):

Last time, the buyers found value and drove the indexes up after the “bloody” day.  The question on everyone’s mind has become:  Will it happen again?

Dr. Bruce Hong on his Trading Psychology blog recently began an engaging and interactive discussion on overcoming fears in trading.  Dr. Hong posts a recent email from a deeply capitalized, intelligent trader that is described as:

He now experiences such intense stress while trading that he frequently pulls his entry order, just before it’s hit. His heart rate is elevated and his palms sweat so intensely that he has to keep towels at hand so that he can use his mouse or keyboard!

What follows are various posts from readers and follow-ups from Dr. Hong all designed to help traders overcome their fears and hesitations.

Be sure to read the comment section, as traders share their experiences and tips for how they cope with stress in trading.  This is an expanding post and I suspect you should feel free to contribute if you have additional insights.

GoldenTicker, a new site steeped in William O’Niel’s CANSLIM approach for finding value stocks for the long run, posts 12 quick rules for value investing that will be helpful to long term investors and position traders.