Forging a New Play

A picture may be worth a 1,000 words, but could it also be worth 100 points on the S&P 500? Perhaps. Looking at this chart, you'll find a definitive pattern where the SPDR S&P 500 (SPY) sells off each morning, then spends the better part of the day rallying higher. So while it hasn't gone anywhere recently, it's been possible to pick up $0.50 to $1.00 per day, every day, playing this pattern. Over the last 10 days, getting it right would have netted the pattern trader upward of 100 points on the S&P 500.

SPDR S&P 500 (SPY) -- Daily Source: StockCharts.com View Chart » View in New Window »

Jim Cramer covered steel last night on his "Mad Money" show. A comparison of steel to China was briefly made and this is another one where the chart provides all the words that are needed. You like China? Then you should like steel. Take a look at the Market Vectors Steel ETF (SLX) with the price of the iShares FTSE China 25 Index (FXI) behind it. These two move in lockstep. The correlation, seen on this chart below the price, is extremely high and very consistent for both short periods of 20 days and longer periods of 50 days....159 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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