Market commentary for 01/30/2009
Good day!
After bad economic news (unemployment claims reached a record high and new home sales hit a record low) indices back all Wednesday gains and back when started after the Tuesday. With other words Wednesday gap is filled what is not good action for market recovery. We got another prove that safest places for trading are intraday setups and that every overnight trades are higher risk right now. Market just doesn’t support long swing trading and market again reminds us that we are in the bear market. When we look at the 60 min chart we can see that gap is filled. Selling pace was not that strong as buying pace day before, but it was enough strong to see that will be hard to back soon on the Wednesday high. Also on the daily chart we have another prove about the QQQQ strength and the DIA weakness. The DOA closed right at 10sma support area, while the QQQQ barely close under 20sma. The SPY was again in the middle and still have room for morning weakness continuation for completely filling gap. Since indices closed at lows charts again suggest for morning continuation, same as yesterday, but different direction. I don’t have strong bias, but I’m sure that trading risk is high and it will best to stick with smaller time frame setups and that will be my focus for now.
Good day!
After bad economic news (unemployment claims reached a record high and new home sales hit a record low) indices back all Wednesday gains and back when started after the Tuesday. With other words Wednesday gap is filled what is not good action for market recovery. We got another prove that safest places for trading are intraday setups and that every overnight trades are higher risk right now. Market just doesn’t support long swing trading and market again reminds us that we are in the bear market. When we look at the 60 min chart we can see that gap is filled. Selling pace was not that strong as buying pace day before, but it was enough strong to see that will be hard to back soon on the Wednesday high. Also on the daily chart we have another prove about the QQQQ strength and the DIA weakness. The DOA closed right at 10sma support area, while the QQQQ barely close under 20sma. The SPY was again in the middle and still have room for morning weakness continuation for completely filling gap. Since indices closed at lows charts again suggest for morning continuation, same as yesterday, but different direction. I don’t have strong bias, but I’m sure that trading risk is high and it will best to stick with smaller time frame setups and that will be my focus for now.
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