October 23, 2010: This report analyzes US stocks and exchange traded funds to find support and resistance areas to trade off. Last week traders using our entry and exit areas made a net profit of $477. The net profit is based on trading in 300 share positions. Profits and losses will vary depending position size.

For weekly profit and loss on all asset classes click here:  Weekly profit and loss statement

This week's picks

Please click the links to the charts on the right hand column to find buy and sell points we would take.  The text in the commentary column indicates either where prices are in relation to support and resistance or if a position is in profit or loss.

How to read the charts:

For traders interested in long positions or covering short positions:

1. The Green line nearest to the current price indicates the price point at which we would buy shares. The Yellow line below it indicates the price point at which we would place a stop loss order.
2. If we buy shares at the price point indicated by the green line & the share price goes up after that, we would keep moving our Stop Loss price point higher to lock in profits or minimize losses.
3. If we miss the opportunity to buy shares at the Green line nearest to the current price or get stopped out of a long position, we would wait for prices to reach the next Green line to buy. (shown only in some charts, where the next potentially good purchase point is identified). This price point offers the next opportunity to buy.
4. The Green line nearest to the current price can also be the price point to cover short positions to book profits.

For traders interested in short positions or selling long positions:

1. The Red line nearest to the current price indicates the price point at which we would short shares. The Yellow line above it indicates the price point at which we would place a stop loss order.
2. If we short shares at the price point indicated by the Red line & the share price goes down after that, we would keep moving our Stop Loss price point lower to lock in profits or minimize losses.
3. If we miss the opportunity to short shares at the Red line nearest to the current price or get stopped out of a short position, we would wait for prices to reach go to the next Red line before shorting (shown only in some charts, where the next potentially good short point is identified). This price point offers the next opportunity to short.
4. The Red line nearest to the current price also indicates the price point sell shares in our account to book profits

Our strategy to manage long and short positions:

1. We will always take our losses at the stop loss
2. If we buy at 10 and our stop loss is at 9, we'd sell 1/3 our position at 12 and move our stop loss to point 10. This makes it possible to break even on the trade if prices move against us. If the position moves into greater profit we keep moving our stops to lock in profits. 
3. If we short at 10 and our stop loss is at 11, we'd cover 1/3 our position at 8 and move our stop loss point to 10. This makes it possible to break even on the trade if prices move against us. If the position moves into greater profit we keep moving our stops to lock in profits.
4. We'll update the stop loss and profit targets weekly when the report is published. The profit target will be identified with white lines. But it's possible that prices hit our entry target between reports and hence we reveal our strategy to you.