Market commentary for 02/05/2009
Good day!
Another try, failed. That is short explanation from Wednesday market action. Again was DIA weakest and QQQQ strongest, but result is same. After reached previous resistance area and formed cup, indices didn’t have enough strength to form handle and we got same situation as daily charts after FED announcement last week. The DIA and the SPY form daily triangle with higher odds (for now) for selling continuation. Obviously we can see that every try for reversal finish with selling continuation. This is very bad situation for bottom traders. If you all remember, I always leave alone initial bounce from low and then I go with continuations. Yes, I will miss initial move, but that will save my money. Since every try failed, I use small time frames for fast trades, everything longer is higher risk. Every overnight trade is high risk, same as swing trade. There are own was charts, somje swings doing ok, but generally safest place is with fast trading or WAITING. Cash is position too, and that is very important. Sometime is best just wait and I think that is good time for that, because trading can be very frustrated right now. Perfect patter see perfect breakout and after nice start we see strong reversal and after all we are frustrated. Market is very nervous and I think that we will have same action for some time. It is not over and now is important to survive, Keep that in mind, because only patient and smart traders will see again good market, and it will come that is 100% sure.
Good day!
Another try, failed. That is short explanation from Wednesday market action. Again was DIA weakest and QQQQ strongest, but result is same. After reached previous resistance area and formed cup, indices didn’t have enough strength to form handle and we got same situation as daily charts after FED announcement last week. The DIA and the SPY form daily triangle with higher odds (for now) for selling continuation. Obviously we can see that every try for reversal finish with selling continuation. This is very bad situation for bottom traders. If you all remember, I always leave alone initial bounce from low and then I go with continuations. Yes, I will miss initial move, but that will save my money. Since every try failed, I use small time frames for fast trades, everything longer is higher risk. Every overnight trade is high risk, same as swing trade. There are own was charts, somje swings doing ok, but generally safest place is with fast trading or WAITING. Cash is position too, and that is very important. Sometime is best just wait and I think that is good time for that, because trading can be very frustrated right now. Perfect patter see perfect breakout and after nice start we see strong reversal and after all we are frustrated. Market is very nervous and I think that we will have same action for some time. It is not over and now is important to survive, Keep that in mind, because only patient and smart traders will see again good market, and it will come that is 100% sure.
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