Swing Trading and Market Timing Knowledgebase

By: John Crane, swing trading guru

Market Timing Dell

Figure # 5.13 - Dell Inc. closed at 40.40 on May 26, two days prior to the May 30 swing trade date, (E). The stock market traded lower on May 27 and May 31, (F), forming a potential bullish Market timing Reaction swing. The stock market traded to a high of 40.71 on June 1 and confirmed the Market timing Reaction swing buy signal. However, the stock market failed to follow through and dropped below the May 31 pivot low on June 10, where it continued to meander back and forth over the next few weeks.
dell chart
Figure # 5.13 - Dell Inc – (DELL)

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**THE RISK OF LOSS IN TRADING CAN BE SUBSTANTIAL. YOU SHOULD, THEREFORE, CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER OR OVER-COMPENSATED FOR THE IMPACT IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT.NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES.