Soy Intake Promotes Favorable Cholesterol Concentrations

Clinical trials have suggested that the intake of soy protein reduces blood cholesterol, but few studies have explored this relation in subjects who consume soy as part of their regular diet. Scientists at the University of Oxford, Oxford, United Kingdom decided to take a closer look and found that "moderate intakes of soyfoods as part of a regular diet are associated with favorable blood cholesterol concentrations."

The researchers assessed dietary habits in a group comprised of 1,033 pre and postmenopausal women with widely differing soy intakes using a food frequency questionnaire. The cross sectional study incorporated subjects from the Oxford arm of the European Prospective Investigation into Cancer and Nutrition, and included 361 non-vegetarians, 570 vegetarians and 102 vegans.Medical and lifestyle data were collected, blood samples were drawn, and plasma total, low-density lipoprotein (LDL) and high-density lipoprotein (HDL) cholesterol levels were measured.

Soy protein intake was inversely associated with total and LDL cholesterol concentration and with the ratio of total to HDL cholesterol, but not with HDL cholesterol concentration. Mean plasma LDL cholesterol concentration in women with a soy protein intake of six grams per day or more was 12% lower than in women who consumed 0.5 grams per day.

Soy Protein May Help Protect Diabetics From Heart, Renal Disease

"Heart and renal diseases are two major problems in diabetic patients," according to a study reported in the European Journal of Clinical Nutrition.

The study continues, "Hyperlipidemia is one of the main risk factors of cardiovascular complications in diabetes. The type of protein consumed also affects the changes in renal blood flow, glomerular resistance and renal function in these patients. Hence, this study was undertaken to show the effect of soy protein consumption on lipid profiles and kidney function of diabetic patients with nephropathy."

The crossover randomized clinical trial was conducted on 14 patients who were free of any uncontrolled condition or other renal diseases. They were asked to follow a usual nephropathy diet consisting of 0.8 g/kg of protein, based on 70% animal and 30% vegetable protein, for seven weeks.

After a washout period of four weeks, subjects followed another seven-week cycle with a similar diet containing 35% soy protein and 30% vegetable protein.

Reductions in total cholesterol, triglyceride and LDL cholesterol, urinary urea nitrogen and proteinuria were reported after consumption of soy protein versus animal protein. Renal function was also favorably affected, leading researchers to conclude that "soy inclusion in the diet can modify the risk factors of heart disease and improve kidney function in these patients."

Bulls are recuperating, watch support 1190, 1182

Stocks slid Thursday, although they finished off their session lows, as investors weighed cautious comments from a regional Federal Reserve president about the health of the economy and a mix of quarterly profit reports. The S&P 500 slipped 4.6 points, 0.4 percent to 1,101.5.

I bought UPRO when the market bottom at 1093 support with extreme selling pressure, then I sold all of it when market got back to 1103. I don't want to hold a short or long position overnight at this price level.

Market seems digesting the recent gain. I will wait until the next resistances 1131 and 1145-1150 to short this market. For the next few days I may day trading for some quick profit. watch support 1190, 1182.

Enjoy your bull run and wait for the shorting opportunity

Bulls stomped on the brakes today as a wave of disappointing data washed over Wall Street. The S&P 500 Index (SPX – 1,106.13) clung to its perch above 1,100, sacrificing just 7.7 points, or 0.7%, by the close. The index's 200-day moving average continues to be a point of concern. Nonetheless, the current upward momentum will crush the S&P500 index 200 days moving average in a short period of time just like the DOW and NASDAQ.

Our strategy and trading plan are still the same as yesterday. Just patient and wait for the short term frantic buying extreme at 1131 and 1145-1150, then we will jump in and short this market. Remember this is the third wave rally, the opportunity we are waiting is the fourth wave retractment, we must cover our short at the correct retractment level or we will be trapped by the fifth wave rally.

Short term flash point 1145-1150

The S&P 500 Index (SPX – 1,113.84) giving up 1.2 points, it  maintained atop the 1,100 level, and is now virtually neck-and-neck with its 200-day moving average(1113.93).

I still believe this rally will bring the market to a secondary high to around 1075-1079 before it starts the second phase of our bear market. There are three more critical resistances to break before the bulls can complete their journey. 1113-1117 is the first hurdle, 1131 is the second hurdle 1145-1150 is the third hurdle.

We are dealing with the first resistance 1113-1117, market actually poked to 1120.95 today, but the selling pressure entered the market right after that. I don't think this resistance can stop the current upward momentum, well, I always suggest to let the market talk first and we react afterward because market sometimes perform without a logical reason.

Tomorrow I will place limit order to short this market at 1130 and add one more contract if the market go up to 1145-1150. Patient traders should wait until 1145 which is the 100% projection(The second leg low 1056.88 to our second leg high projection 1145.43) from the low of  first leg rally 1010.91 to the high of 1099.46. However, I really doubt the market has the momentum to go up this far without any interruption from our second hurdle 1131.

If my prediction is correct, market will pause and correct at 1145-1150 before it begin the fifth wave rally to 1175-1179, however, nobody can ensure the market will go to a certain point except god. Therefore, get ready for any sudden upward momentum spur or momentum reverse to downside.

Bulls' sudden death resistance 1145-1150

The S&P 500 Index (SPX – 1,115.01), tacking on 12.4 points, or 1.1%. and it closed above 200-day moving average for the first time since late June.

I didn't short the market today because the technical indicators were not at extreme overbought level and the S&P500 index didn't have a spike to 1113-1117 area and retract. It may retract from here(1115.01) tomorrow or it may extend to 1131-1145 area.

Next resistance will be 1131 which is the June high. Personally I prefer 1145-1150 resistance. If market can go that far in next few days, the risk reward ratio definitely will favor the short side, and I will be the first one to short this market provided all the indicators(5 minutes, 15 minutes, 60 minutes) are at extreme overbought levels.

All in all, bulls will have a hard time to surpass 1145-1150, even if it can take out 1131 which I believe it will have difficulty at this moment.

Tough resistances1113-1117, 1129-1149

The S&P 500 Index (SPX – 1,102.66) added nearly 9 points, or 0.8% on Friday, finishing atop the 1,100 level for the first time since June 21. The upward momentum of the market is excellent right now. There is no reason for us to fight the tape, you had better step aside if you don't want to follow the flow. If market hold 1110, we should start the second leg of this rally provided we also hold the second low of 1056.88, the target projection are 1085, 1097, 1110, 1117, 1129, 1149.

Base on the above projection, we have already broken 1085, 1097, 1110, as a result I predict the market will finish the second leg/third wave rally at 1129 or 1149. Also, we have to pay attention at 1113-1117 resistances. 1113.4 is 200 days moving average, 1115 is the 50% fib retractment level from 1220 high to 1010 low, 1117 is one of the short term projections of the current rally

I think market is going to pause at around 1113-1117, I may short it if all the technical indicator show extreme overbought and I can watch the market and day trade in front of my computer. However, if you are patient I will highly suggest you to wait until 1129-1149 where the successful rate will be much better because 1131 is June high and  the second leg-third wave target and resistances probably will be at 1129-1149.

Type of Rice Linked to Diabetes Risk

Think twice before eating white rice? It might be wise, new research suggests. A large study reports that people who eat more white rice are at increased risk for type 2 diabetes, whereas those who eat more brown rice have less risk.

Type 2 diabetes—previously known as adult-onset diabetes—is one of the fastest growing health problems in Americans of all ages. Being overweight or inactive boosts the risk for the disease. So does a family history of diabetes, older age and certain ethnicities. Earlier studies have hinted that increased consumption of refined carbohydrates, including sugary foods and white breads, might also raise the risk.

Research suggests that whole-grain foods like brown rice could reduce the likelihood of diabetes. To create white rice, brown rice must be milled and polished, which removes most of its vitamins and minerals. Milling also strips away most of its fiber—a compound that might help to deter diabetes by slowing the rush of glucose into the bloodstream.

In a new study, researchers at the Harvard School of Public Health and Brigham and Women’s Hospital analyzed rice consumption and diabetes risk among nearly 200,000 people who had participated in 3 large studies of nurses and other health professionals. Every 2-4 years, the participants completed questionnaires about their diet, lifestyle and health conditions. During 14 to 22 years of follow-up, about 5,500 cases of type 2 diabetes arose among participants. The research was funded in part by NIH’s National Cancer Institute (NCI) and National Institute of Diabetes and Digestive and Kidney Diseases (NIDDK).

In a paper published on June 14, 2010, in the Archives of Internal Medicine, the researchers reported that frequently eating white rice increased the risk of type 2 diabetes. Those who reported eating at least 5 weekly servings of white rice had a 17% percent higher risk than those who ate less than 1 serving per month. In contrast, those eating at least 2 weekly servings of brown rice had an 11% lower risk of developing type 2 diabetes than those eating less than 1 serving per month. The findings held even after scientists adjusted for several factors that might influence the results, including age, weight and family history of diabetes.

The researchers calculated that replacing just one-third of a typical daily serving of white rice with the same amount of brown rice might reduce the risk of type 2 diabetes by 16%. The same replacement with other whole grains, such as whole wheat and barley, could lead to a 36% reduced risk, the scientists estimated. The current Dietary Guidelines for Americans recommend that at least half our carbohydrates come from whole grains.

The researchers note that a potential limitation of their study is that the analyses were based on participants’ self-reported intake of brown and white rice, which may not be accurate. However, they note that the large number of people studied, and the consistent results across all 3 study groups, add validity to the findings.

Rice consumption in the U.S. has dramatically increased in recent decades, We believe replacing white rice and other refined grains with whole grains, including brown rice, would help lower the risk of type 2 diabetes.

Buying the weakness and selling the strength

The S&P 500 Index (SPX – 1,093.67) was up 24 points, or 2.3%, though its intraday momentum was halted just shy of the 1100 region. As I mention yesterday, 1100 is the region divide the bull and bear. Once the resistance is cracked, bull will no doubt to regain power. And I don't think there is any difficulty consider the intensive upward momentum of the market right now.

The current resistance zone is from 1094-1113, which includes the 1094 200DEMA and the 1113 200DSMA. The SPX has made a series of lower lows and highs since the 1219.80 4/26 high, and is trading below both the 200DMA and the 50DMA, and the 50DMA are trading below the 200DMA and the 20DMA are trading below the 50DMA. That is what it call a Below-the-Line market, and not one where you can buy high and expect to sell higher.

Buying the weakness and selling the strength in concern with key price, supports, resistances, time and momentum strategy remains the most profitable way for traders to play the current market.

I don't have any open position right now, I missed the best opportunity to long this market when it hit the 50% fib retractment level at 1057 on Tuesday. As I mention earlier this is a below-the-line market, and we cannot buy high and expect to sell higher. If we miss the profit cushion from 1057 to 1083 at that day. It's risky to jump on board of the bulls camp. Meanwhile, If you want to short, it's not wise to short it right now consider the momentum is on bulls side. I think we have to wait at least 1130, and 1145-1150 will be more appropriate if you are patient enough.

Bulls should regain control if 1100 resistance is broken

Federal Reserve Chairman Ben Bernanke can take most of the credit for the market's nosedive today. S&P500 retest 1065 support and rebound. I considered today as a buying opportunity provided yesterday's low 1057 hold. S&P 1057 is very significant as I mention earlier because it is the 50% fib retractment level, if market rebound from here, it will never look back. In addition we can use this number to project the next market resistances or targets.

I use the 1010.91 low, 1009.46 high and 1056.88 as second low to do a Fibonacci Projection in this up trend rally. The resistances or targets are 1112, 1145, 1179, 1200, 1233, 1289.

S&P 1113 is the 200 days moving average, 1145 is the prior resistance (actual high1150.45) on January, these two resistances are very critical, but I think the market will break the 200 days moving average 1113 this time if the current momentum keep going. It may pause at 1147 before reaching the ultimate target either at 1181 or 1203. I need to keep watching with elliott wave from now on to see if the market can really go that far. Don't worry I will keep you inform.

If you did read my prior post on 7/11/2010, you can see the fib retractment number of the second phase bear market down leg is similar to the above projection number. In the near future, we may see a hiccup, pause, correction or trend reversal, and 1110-1115, 1145-1150, 1175-1181 are the numbers you don't want to forget for the next two months or you will be sorry for the rest of your life.

Lucky bulls rebound from 1057

Wall Street staged a comeback after an early dip in anticipation of good earnings from Apple and speculation of changes in monetary policy on excess bank reserves, reducing the interest rate from 0.25% to 0. We initially had a dip in equities as Goldman Sachs reported a big drop in quarterly earnings, along with weak revenues reported from IBM. S&P500 up 12.23 points closed at 1083.58

Market ends RIGHT at the 1085 resistance which I placed my stop loss order, but nonetheless we end at the highs of the day confirming strength from the bulls. We will see if we pull back or break out from this levels on the S&P500 tomorrow.

I sold the rest of SPXU at the best price when the market bottom today, that is a 9% gain in three days. This is a very impressive trade consider I short this market at market high 1097 on last Thursday and cover today at the market bottom 1057. The only regret is that I missed today's rally because I set my buy limit order at 1047 instead of 1057. , I am very sure I will long this market at 1057 If I day trade today , Unfortunately, I always set my limit order more prudent if I preset the order in advance.

The rally today give us a confirmation for this rally because if a market can bounce at the 38% or 50%  fib retractment level, it ensure you that the momentum of the rally still intact. If market can break critical resistance 1100, then we may see the second leg of this rally soon.

For people who miss the buying opportunity today at 1057 like me. It's hard to play this market now. You can't short a market that just rebound from 55% fib retractment level because the momentum is just too intensive. If you long right now you will miss the profit cushion from 1057 to 1083, the risk reward ratio surely not in our favor. The only thing I can do is waiting for another opportunity.

Watch resistances 1100 and support 1075, 1070, 1065, 1055. In the meantime, I doubt the market will retest the above support especially 1065 and 1055 because the short term momentum is .............UP. But hay! who knows, I always tell people to read and listen to the market instead of predicting it.

Market better bounce at 1065 or 1055

The S&P 500 Index (SPX – 1,071.25) finished with a gain of 6.4 points. One of the primary ways to identify a trend is by observing a series of lower highs and lower lows, in a down trend. That is very evident in the daily chart. Price stalled at the 1100 level. This can mean one of two things.  It can be a sign of reversal, or it can be a temporary stopping point leading to continuation of the previous move. Friday brought the answer as developing market activity confirmed the overall weakness and turned price back down in harmony with the trend.

This is why it is so important to wait for confirmation, whether for a market turn or for continuation. The way things stand, Monday was a weak rally attempt after a strong selling day, and weak rallies lead to lower prices.

We have to go with what is known. Events may change tomorrow, or the day after, but until there is some obvious ending action, with the trend down, being on the short side of the market has been dictated by price and volume activity that says lower prices are likely, not guaranteed, but likely. Staying short until the market says otherwise, for anything can happen.

Market found a support at 1065 which is the 38% fib retractment level of this rally from 1010 to 1100 today. If this support hold and the rally resume, bulls will be cheerful because it usually shows the momentum is strong and market is healthy when a rally resume at 38% fib level. However I am waiting for 1055 which is 50% fib level.

I still holding SPXU, I will sell it tomorrow if S&P500 drop down to 1055, I will set a stop loss order at 1085 and I will attempt to long it at 1045 with extreme oversold and rebound.

Watch critical support 1055 and 1045

Stock indices were down sharply Friday with  financial stocks getting hit the hardest. Volume increased which is an indication of aggressive selling. S&P500 down 31.6 points at 1064.88. If you read my previous post from the other day, you would know that the stock market was at key resistance 1100 while also being in an overbought condition. When we have this kind of situation, the market usually (but not always) sells off and that is exactly what we saw happen on Friday.

I sold half of my SPXU at the low of the day, not too bad for a 6% gain in two days. I will sell my other half probably at 1055 which is the 50% fib retractment level of the current rally from the low of 1010 to 1100. The next support after 1055 will be 1045-1047, 1045 is the 61.8% retractment level and 1047 is the neckline of the head and shoulder.

My prior post mention that this rally probably will bring this market to a high level so as to build up the secondary high and this secondary high might need to take around 20 to 30 days to establish. And a strong and healthy rally need retractment, however if an rally doesn't recuperate at 50% or 61.8% retractment levels, then the momentum of this rally will be broken. Therefore 1055 and 1045 are two critical supports market has to rebound.

I will sell the rest of my SPXU at 1055 tomorrow and I will buy this rally again if it rebound at 1055 or 1045.

Watch resistance 1100 for next move

Market closed at 1096.48, up 1.31 points, we had an early sell off followed by a late day rally. I didn't sell my SPXU because I set my sell limit order at S&P 1075, just 5 points shy of daily low 1080. Too bad I didn't get this 18 point daily range gain. Market seems want to go up some more.

It looks to me that somebody was controlling the last hour trading. It is really difficult to properly analyze a market that continually receives Fed support during options expiration week when the Fed pumps money into the system, an indirect support of the stock market.

If you look at the chart of the recent rally, you will see that the volume is very weak. A healthy rally should accompany with high volume.

Right now I am looking for a retractment to 1075, 1067 and 1055. I will cover my short at 1075 and 1067, and I will long the market if it hit 1055 and rebound.

Market's Momentum is strong in the mean time, there is probability for it to test 200 days moving average at 1112 or 1115 which is the 50% fib level from 1220 high to 1010 low.

I see there are two ways the market will go, it may break through 1100 and heading to 1112 and 1115, or it will consolidate between 1100 and 1080 for a while and break out later. You can see that 1100 now is critical resistance to stop this rally to march.

Market Topping Out ?

Even better-than-expected earnings from the chip giant Intel failed to move investors to a more positive view of stocks today. Instead they focused on economic data rather than earnings. S&P down 0.17 points at 1095.17. I still believe that market will have some more upward space to move to secondary high of this bear market counter trend rally. However, market is a bit overbought right now. Healthy market needs to digest properly before another upward wave.

Market is at 50 days moving average, 200 days moving average is 1112 above, 20 days moving average is 1075 below. If 1100 is our temporary top, then we have some fib retractment supports for 38.2%, 50% and 61.8% , they are 1065.6, 1055, 1044.38.

I still shorting this market with SPXU. If tomorrow market start retract, I will cover half of my short at 1075 which is the 20 days moving average, I will cover another half at 1065 or 1055 depend on the internal indicator's oversold signal. Patient traders may want to cover their short at 1055 which is the 50% fib level, it's also the the most common retractment % level. We will have a better perspective about the strength of this rally by looking at the retractment too.

If market decide to go up to 200 days moving average 1112 tomorrow, I may add up some more short if all the short term indicator is at extreme overbought level while 1112 act as a solid resistance.

Resistance 1112 and 1115 waiting for the raging bull

S&P500 broke three resistance in one day, 1085, 1090, 1097. I have already mention that the momentum of this up leg is very powerful, in addition, the earning report of Intel, and other companies gave a push to this rally. Usually, I won't short this kind of market on the way up, instead, I will short it on the way down. However, in this morning my limit order was triggered when market went up to 1097. Now I am holding SPXU.

Intel's earning after hour push the market higher. Next critical resistances are 1102, 1105, 1112, 1115. We have to be cautious about 1112 and 1115 two resistances. 1112 is 200 days moving average. And 1115 is the 50% fib retractment level from 1220 high to 1010 low. If market can go this far tomorrow, I don't think it can sustain the over extended rally. If you are day trading tomorrow, wait until market come close to these two resistances combine with extreme 5, 15, 60 minutes overbought RSI and stochastics. Risk reward ratio is definitely on the bear side.

Resisances ahead, get ready for a pull back.

S&P500 today's high 1080.78. It's getting closer and closer to our resistance targets 1085, 1090 and 50 days moving average 1097. I believe the market will take a breather before heading to our higher resistance targets. S&P 1085 is way too close to today's closing price, if I am going to set a limit order, I will short this market at 1090 and 1097. And if tomorrow's market can go up to 1097, it will over extend itself in a short period of time. The risk reward ratio will favor the bear.

The market need to digest some of the recent gain before the next mission. Be ready for a pull back in next few days. Just pay attention on the above resistances I mention above, set your stop loss and have a nice sail.

My long term perspective of this market

S&P was up 7.71 points last Friday. The momentum of last week rally let me believe that the S&P 1010 is our temporary low. I spent some time on weekend to analyze the charts and review the Dow Theory. I found out the recent low at 1010 could be the first down leg of the second phase of this bear market.

There are some criterion need to be fulfilled before the Phase II of the ongoing secular bear market will execute. First of all the market have to make an advance into a secondary high below prior high 1220, secondly, we need to break the secondary low which I believe it's the 1010 we saw last week.

If I am right with the above analysis, then we are entering a short term bull market provided the market hold 1010, that mean the market is heading toward the fibonacci retractment level from the high of 1220 to the recent low 1010. The 38.2%, 50%, 61.8% and 78.6% fibonacci number are 1090, 1115, 1140 and 1175. And I believe the market will go up to 1140 or 1175 with five Elliott wave and that three peak of the wave are at 1090, 1115 and 1140/1175. The market will only reach 61.8% fib level 1175 if the momentum is on extreme mode. In the mean time, I doubt the market can go that far, well, I will keep my eyes open and see how the market climb.

I also predict the duration of this counter rally will be 20 to 30 days. By mid to end of August, if you see the market at the extreme overbought level, feel free to lighten your long position, aggressive trader may start shorting this market if all the technical indicators show unanimous direction.

Friday S&P500 closed at 1077.96, I would like to wait for at least 1082- 1085 before start shorting this market again. If you are patient enough, you should wait for the 38.2 fib 1090 or critical resistance 1100.

All in All, today I just want to share my analysis of this market. I may not accurate with this prediction, actually we shouldn't predict the market, but if I am right, at least some long term investors can escape the second phase of this bear market.

Onions for Your Health

Onions not only provide flavor; they also provide health-promoting phytochemicals as well as nutrients.


Onions contain quercetin, a flavonoid (one category of antioxidant compounds). Antioxidants are compounds that help delay or slow the oxidative damage to cells and tissue of the body. Studies have indicated that quercetin helps to eliminate free radicals in the body, to inhibit low-density lipoprotein oxidation (an important reaction in the atherosclerosis and coronary heart disease), to protect and regenerate vitamin E (a powerful antioxidant) and to inactivate the harmful effects of chelate metal ions.


Major dietary sources of quercetin include tea, onions and apples. Recent studies at Wageningen Agricultural University, the Netherlands, showed that the absorption of quercetin from onions is twice that from tea and more than three times that from apples. Based on studies conducted at The Queen's University at Belfast, Ireland and Wageningen Agricultural University, the content of quercetin in onions is estimated to be between 22.40 mg and 51.82 mg per medium-sized onion (100 gram). Further research at the Agricultural University on Wageningen showed that daily consumption of onions may result in increased accumulation of quercetin in the blood. Studies are in progress to determine whether the increased quercetin accumulation from eating onions translates into significant antioxidant benefit.


Other studies have shown that consumption of onions may be beneficial for reduced risk of certain diseases. Consumption of onions may prevent gastric ulcers by scavenging free radicals and by preventing growth of the ulcer-forming microorganism, Heliobacter pylori. University of Wisconsin-Madison researchers found that the more pungent onions exhibit strong anti-platelet activity. Platelet aggregation is associated with atherosclerosis, cardiovascular disease, heart attack and stroke. 


A study in progress at the University of Wisconsin is determining the extent to which onion consumption and specific onion compounds affect the in vivo aggregation of blood platelets. "Using an in vivo model, we are beginning to investigate and, in some cases, confirm the potency of the onion as a blood thinner and platelet inhibitor. Onions may be among the vegetables that will be prized not only for their addition to our cuisine, but for their value-added health characteristics," said Irwin Goldman, Associate Professor of Horticulture, University of Wisconsin-Madison.


A recent study at the University of Bern in Switzerland showed that consumption of 1 g dry onion per day for 4 weeks increased bone mineral content in rats by more than 17% and mineral density by more than 13% compared to animals fed a control diet. This data suggests onion consumption has the potential to decrease the incidences of osteoporosis.


Several studies have shown quercetin to have beneficial effects against many diseases and disorders including cataracts, cardiovascular disease as well as cancer of the breast, colon, ovarian, gastric, lung and bladder.
In addition to quercetin, onions contain the phytochemicals known as disulfides, trisulfides, cepaene, and vinyl dithiins. These compounds have a variety of health-functional properties, including anticancer and antimicrobial activities.


Onions are also a source of vitamin C, potassium, dietary fiber and folic acid. They also contain calcium, iron and have a high protein quality (ratio of mg amino acid/gram protein). Onions are low in sodium and contain no fat.

Watch out next critical resistance 1082-1085

Market up 9.98 points. I day trade today with all the strategy, trading plan and resistance numbers I mentioned yesterday. It was a very successful trading day.

Market gap up with tremendous momentum from yesterday resistance 1062 to next resistance 1071, I didn't wait for market fade out and short it right away because the 5, 15 and 60 minutes RSI and stochastics were at very extreme overbought level, I am very sure the market would not sustain at this situation. I bought SPXU and TYP at the best price level which is the market top of the day. I sold half of my position at the S&P 1058 support area. Market resume the strength at the late trading section, I sold all of the rest at the end of the day.

Once again, critical support and resistance level combine with extreme technical indicator numbers prove to be the best risk reward ratio to play the market reversal. I didn't hold any position because market is at critical resistance level 1071, however, the momentum at the end of the day is so strong that it may extend to the next critical resistance 1082-1086.

Bull have to be very careful with the next two resistances which are 1082-1086 and 1100-1104. I suggest you to lighten your long position on the way up because I have told you thousand times that the rally start from March, 2009 to April, 2010 is a counter trend rally in bear market, and the rally from 1010 we are seeing right now may be a dead cat bounce. Nobody sure about the length and magnitude of each rally, but we can have a better perspective and judgment with the help of all the technical indicators and critical resistances and supports.

I do a fibonacci projection with 1010 low, 1042 first high and 1018 first low, then I find out some resistance targets for this rally, they are 1038, 1050, 1062, 1070, 1082, 1102.
At the same time, I find out the 50% and 61.8% fibonacci level 1071 and 1085 of last leg down from 1131 to 1010 are very similar to my projection numbers.

Base on the above projection and retractment numbers, I will short this market again when it reach the critical resistance 1082-1085 and the major resistance 1100-1104 combining with extreme overbought indicators. I don't short it at the current resistance 1071 because the market today seems very strong and I count the elliott wave for this rally, seems like we need one more wave up to complete this rally, therefore 1080-1085 is pretty good projection.

Enjoy the rally and look out resistances 1071, 1085, 1104

S&P500 surged 32.21 points today. Short term traders covered their short position today. Market may have a short term rally mode until the critical resistances come into sign.

S&P 1040, short term  resistance two days ago, now become support. If market retract, I don't think it will break 1040 provided 1010 is the short term bottom. I may long this market if it retract to 1040 and rebound.

Next resistances are 1071, 1085, and 50 days moving average 1104. These three resistances are very good short opportunities. If you are not greedy, you can make some quick profit easily. You just need to wait until the market fade out at the resistances area with extreme overbought 5 minutes, 15 minutes and 60 minutes RSI and Stochastics, then short the market with stop loss few points away the resistance and profit target at the next support.

Although today's rally seems like a very powerful one. I still don't convince that market did find it's true bottom, First of all the volume is not high enough, short term traders cover all their short position, but long term investors did not participate. Secondly, there is no real panic capitulation happen in this bottom. When a bottom is lack of panic wash out, the structure and foundation will not be sturdy. This is a counter rally in a bear market. I really looking for real bottom at S&P 940-960, as low as 860. However bear markets counter rally always deceptive, the strength of each rally may make you think that the bear market is over.

Don't fight the tape, follow the flow of the market is the basic element to survive in trading business, so in the mean time, I will wait for critical resistance to short, but I won't hold it for long because I know bear market counter rally like this one may keep going for some time if the news and earning result cooperate.

Which direction-- 1040 up or 1010 down ?

I just came back from my 4 days vacation trips. I didn't watch today's market, but if you follow my last post I guess you should take a quick profit with the resistance I mentioned at 1040.

The market failed at 1040 and closed at 1028.06, up 5.48 points, there are only two things it will do, retest 1040, or retest 1010. It's seems like playing roulette again because the risk reward ratio is pretty even right now.

It appears now that several more days of scraping along the bottom is needed, before any meaningful advance. Bearish sentiment has reached extreme levels, with Call/Put ratio reaching its lowest level in seven weeks over the last three 3 days, and OddLot Shorts/Volume the highest in 12 weeks.

Last Thursday, I talked about the bottom at 1010 is not the one I am looking for because the panic capitulation did not happen. Other nations, like Hong Kong, China, Japan, seem didn't join the sell off and no panic happen yet.

Market will spent few days to build a foundation before any meaningful rally is established if 1010 is the temporary low. That is, the market will retest 1010 low again in the near future. I will keep an eye on the resistances I mention before which are 1040, 1056, 1071, 1085

I may long the market if 1010 hold and rebound, and I will avoid short aggressively at this level, however I may short again when it hit my resistances level.

Is Garlic Good for You?

Garlic is one of the most valuable and versatile foods on the planet. Garlic belongs to the Allium family of vegetables which also includes onions, chives, shallots and leeks.
Today garlic is a widely recognized health enhancing supplement. Garlic promotes the well-being of the heart and immune systems with antioxidant properties and helps maintain healthy blood circulation. One of garlic's most potent health benefits includes the ability to enhance the body's immune cell activity.

The active component in garlic is the sulfur compound called allicin. Allicin is the chemical produced when garlic is chopped, chewed, or bruised. Allicin is quite powerful as an antibiotic and a potent agent that helps the body to inhibit the ability of germs to grow and reproduce. In fact, it's said that 1 milligram of allicin has a potency of 15 standard units of penicillin.

There are now over 12 studies published around the world that confirm that garlic can reduce cholesterol.
Recently researchers in Oxford and America have published some summaries of all the good data on garlic.

Garlic is known to stimulate T-lymphocyte and macrophage action, promote interleukin-1 levels, and support natural killer cells. Strong activity of these key cells promotes healthy immune system function, and strengthens the body's defenses.

Garlic is an invaluable medicine for asthma, hoarseness, coughs, difficulty of breathing, and most other disorders of the lungs, being of particular virtue in chronic bronchitis, on account of its powers of promoting expectoration.

An older remedy for asthma, that was most popular, is a syrup of Garlic, made by boiling the garlic bulbs till soft and adding an equal quantity of vinegar to the water in which they have been boiled, and then sugared and boiled down to a syrup. The syrup is then poured over the boiled garlic bulbs, which have been allowed to dry meanwhile, and kept in a jar. Each morning a bulb or two should be taken, with a spoonful of the syrup.

For ear infections: Wrap a small piece of garlic in some tissue, and insert it into the ear. Leave it there overnight if possible. Pain is almost immediately removed and the infection tends to start clearing up overnight. See our full article Garlic can Fight and Cure Ear Infections

For scratchy throats: Put a small slice of garlic in your mouth and suck on it for 10-15 minutes. You can put it between your teeth and cheek, then scratch it with your teeth a little to help stimulate juice from the garlic slice. This juice slides down your throat and removes the pain.

Garlic can heal the pain caused by insect bites like those of scorpions and centipedes. The juice of fresh garlic mixed with salt can be applied to bruises, sprains and ringworms.

At the first sign of a cold, chop up 4 cloves of raw garlic and eat or use it as a garnish in soups etc.

Cut raw garlic and rub the cut edge on the tooth and gums a couple of times a day to stop toothache.

Take fresh garlic cloves and crush them, apply to warts until they disappear.

Crush a clove or two onto a dessert spoon then add olive oil and down the hatch. you get the benefits of raw garlic with none of the breath issues.

Garlic to clear sinuses. Melt some butter and add minced garlic cloves, spread on toast and eat.

Garlic for herpes. Take a garlic clove and cut in half. Eat one half and take the other half and rub into the affected areas. (may sting a little)

Use raw garlic juice on rashes and bug bites, it stops the itching immediately.
8 to 10 of garlic juice mixed with 2 TBLS of honey four times a day cures a persistent cough.

Garlic for tonsillitis. Peel a clove of garlic and cut them in half lengthwise. Boil for a couple of minutes in about 1.5 cup water and add a pinch of salt, teaspoon of butter, a pinch of pepper and sprinkle with nutmeg.

Cut a garlic clove into small pieces. Swallow them all in one go with a little water to cure bloating, stomach cramps and constipation.

10 drops of garlic juice with 2 teaspoon of honey cures asthma.
The more popular version of garlic unfortunately tends to be the "odorless" pills and capsules found in health food stores. Odorless garlic as an antibiotic or general health promotion herb is useless if it doesn't have its smell. Garlic oil and powder supplements are produced by distilling fresh garlic, and then diluting it with other substances. This process destroys the majority of allicin in garlic. Therefore, the supplements rely on the human stomach to convert some of the remaining garlic components into allicin. Although a few garlic powder supplements are able to generate some allicin within the stomach, the amount converted, if any is converted at all, is dependant upon optimal stomach conditions.

Lighten your short exposure

The S&P500 fell 5 percent to 1,022.58 this week, slumping all five days and closing at the lowest level since Sept. 4. 

Stocks fell for the second week, with the S&P 500’s 50-day moving average dropping to 1,111.66, compared with the 200-day moving average of 1,111.77 in a price-chart pattern known as a death cross. Death crosses happen when the first number drops below the second. The benchmark U.S. index also reached its lowest level of the year yesterday.

The market is entering into bear market zone. In my experience, the market are usually in a very oversold situation when a death cross is confirmed. In the mean time, market will rebound to the prior support 1040, 1056, 1071, 1085 which is now resistance provided yesterday's low 1010 is the short term low. From now, in the medium and long term, it is better to short at the top of every rally intead of buy at the bottom of every sell off. It is the technique of playing a bear market.

Now, the risk of holding short is high, I suggest people lighten the short exposure and wait until the market reach the resistance I mention above or short again when it break 1010 support.

If you short this market when it broke the last support 1040 and cover it at 1010, you should have 30 points quick gain in a few days. Also if you long it at 1010 yesterday and ride it to 1030, you should smile for a 20 points quick gain in a day. That's the art and beauty of technical analysis. All the supports and resistances are base on my careful study and research, so if you are my blog's fans, I won't let you disappointed.

By the way, I sold all my TYH at break even today. I expect a surge in today's market, but it didn't happen. In my philosophy, when the purpose of holding a position is not exist anymore, I will not hesitate to let go.


Hope you have a happy July 4 weekend.

Be cautious with this morning bottom.

Stocks fell again today with the disappointing economic data released. S&P500 fell 3.34 points. The low of the day is the support we recommend yesterday 1005-1008, actual low 1010.91. I buy some TYH when the market reached the low of the day.

I still holding TYH but I am willing to make a quick gain if the market can go back up to 1037-1039 because I am sure not too many traders want to hold stocks over a long holiday weekend.  As a result, for tomorrow I predict the market will have an early morning to midday surge and follow by a late day slump.

The bottom 1010 in this morning is a technical bounce, like what I said these few days, 1009 is a confluence support, that means this support is the combination of several technical support. Therefore the power and successful rate, as well as the risk reward ratio are always optimized.

We have long tail doji candlestick chart symbolize high probability of trend reversal, remember this is a sign not a confirmation. well, the good sign are: market is oversold, rebound at confluence support, better than average volume, have long tail doji candlestick chart, July is not a crash month historically and seasonally. The truth is we still in an economic turmoil over Europe and domestic. And the reports came out last few days from China make the situation worse. All the US employment number, home sales, banking problems don't help at all.

Something is missing in this S&P500 1010 short term bottom formation. We always need some good news as a catalyst to form a real bottom reversal rally, unfortunately, we might not have this for some time. Theoretically, there are two conditions market will rally, either market react to some good news or the market at the panic and capitulation stage. The different is that market may or may not rally with good news but market will sure rally with extreme panic and capitulation.

In the meantime, I don't think we can rely on some good news to act as catalyst. In my experience, the only good time for a market to form a bottom in order to accumulate stocks is at the panic stage. However, Something is missing in this morning S&P500 1010 short term bottom formation. There is no panic emotional sell off, instead we have an orderly transaction. The VIX chart does not has a spike. In addition, there are so many traders are shorting this market at this bearish environment, if all of them are covering their short position, I believe the market will get a bigger force than the one we saw in this morning.

All in all, I don't really like this morning's bottom at all, I will buy this bottom just like what I did in this morning for a few days run. The real bottom I am looking for is S&P 950 which is my sure buy if all the panic elements are presented.

Short term resistance look out 1037-1039, and then 1050-1056