Market commentary for 02/04/2009
Good day!
Look like we wont see 60 min bear flag, because yesterday bounce was too strong for that. Despite of that now I will look for possible 60 min cup and handle pattern. Indices forming cup and we must see will they have enough strength to hold that area and form handle what will be good opportunity for buying continuation. Or we will see same action as we saw after FED announcements last two times. The QQQQ closed above all ma’s on the daily chart, but that not mean nothing because it is not first time lately. On the daily chart the QQQQ is without trend and jumping all around. The DIA and the SPY have similar charts (the DIA is weaker) and both closed under 10sma what is first resistance area. Second and more important one will be 20sma, for any possible trend reversal on the daily chart. So, for now I will follow intraday action to see if we can get handle and continuation pattern, if not I will stay with “own way” and intraday setups. Some of swing setups started well, and if market will hold I think that we have good opportunity to take nice run on them. I will start to closer follow open trades with my profit/loss table, until then be smart and move stop with gain to protect yourself.
Good day!
Look like we wont see 60 min bear flag, because yesterday bounce was too strong for that. Despite of that now I will look for possible 60 min cup and handle pattern. Indices forming cup and we must see will they have enough strength to hold that area and form handle what will be good opportunity for buying continuation. Or we will see same action as we saw after FED announcements last two times. The QQQQ closed above all ma’s on the daily chart, but that not mean nothing because it is not first time lately. On the daily chart the QQQQ is without trend and jumping all around. The DIA and the SPY have similar charts (the DIA is weaker) and both closed under 10sma what is first resistance area. Second and more important one will be 20sma, for any possible trend reversal on the daily chart. So, for now I will follow intraday action to see if we can get handle and continuation pattern, if not I will stay with “own way” and intraday setups. Some of swing setups started well, and if market will hold I think that we have good opportunity to take nice run on them. I will start to closer follow open trades with my profit/loss table, until then be smart and move stop with gain to protect yourself.
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