Market commentary for 01/07/2009
Good day!
For future swing long trade possibilities, I’m not satisfied with Tuesday market action. Indices opened with gap at previous high and in the first 30 min all made new high what was to early breakout for swing setups. After the open odds for long continuation decreased, because it was to early for that. After 30 min and 10:00 am ET reversal period indices started with correction what finished with filling gap for the DIA and the SPY, and it was very close for the QQQQ. Until 20:00 pm ET we saw range action without big changes. Then indices decided to retest high again and after 15 min double top and 21:00 pm ET reversal indices started with stronger intraday correction right to morning low, without rest on the 5 min charts. Indices closed in the middle of the range what formed doji bar on the daily charts.
Tuesday action opened doors for high risk next days on new swing trade setups. As mentioned above, breakup came to early and increased odds for longer daily correction. Since buying pace was strong odds for swing shorts are not good and since market need longer rest for low risk swing long setups I will expect that intraday trading will be safest place for the rest of the week. My focus will be on the own way charts and if I won’t find them, then I will look for day trades. For the rest of the week my expectations are more on the down side and I will look for correction after five days up. Daily doji bar suggest about market indecision right now and that safest place will be with intraday setups. We can see gap up because indices will have small room to reach resistance area, but also we can see correction. It is hard to take exactly top, but it is not hard to recognize trading risk.
Good day!
For future swing long trade possibilities, I’m not satisfied with Tuesday market action. Indices opened with gap at previous high and in the first 30 min all made new high what was to early breakout for swing setups. After the open odds for long continuation decreased, because it was to early for that. After 30 min and 10:00 am ET reversal period indices started with correction what finished with filling gap for the DIA and the SPY, and it was very close for the QQQQ. Until 20:00 pm ET we saw range action without big changes. Then indices decided to retest high again and after 15 min double top and 21:00 pm ET reversal indices started with stronger intraday correction right to morning low, without rest on the 5 min charts. Indices closed in the middle of the range what formed doji bar on the daily charts.
Tuesday action opened doors for high risk next days on new swing trade setups. As mentioned above, breakup came to early and increased odds for longer daily correction. Since buying pace was strong odds for swing shorts are not good and since market need longer rest for low risk swing long setups I will expect that intraday trading will be safest place for the rest of the week. My focus will be on the own way charts and if I won’t find them, then I will look for day trades. For the rest of the week my expectations are more on the down side and I will look for correction after five days up. Daily doji bar suggest about market indecision right now and that safest place will be with intraday setups. We can see gap up because indices will have small room to reach resistance area, but also we can see correction. It is hard to take exactly top, but it is not hard to recognize trading risk.
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