Market commentary for 02/11/2009
Good day!
NOTE: about next 10 days my site will be at http://www.pop35.com.hr/ I will be there until my official site will back (they said about 10 days). Thank you all for understanding.
After NR7 day we can expect trend day and that is what we get at Tuesday. Unfortunately it was not direction what we hoped. It was again buying rumor and selling news market action. After news came out, indices started with selling. On the 60 min charts we can see that pace was very strong with high volume what clear signal for direction was. For the rest of the day it was trend day and indices closed near lows. The QQQQ still look strongest but when we see pace and volume all charts suggest for selling continuation next days. The DIA forming double bottom possibility, the SPY have some room until previous low and we have good odds that indices will stop yesterday action at that area. Since market is extremely nervous last weeks it is hard to say what support area will hold. But if 60 min support area won’t hold and if indices will continue with selling action the odds for the DIA and the SPY to reach previous weekly low will increase and it will be high possibility for that scenario. Usually after trend day we will see consolidation day, but lately I saw more then one trend day in the row so I think that we must pay attention on that too. New short trade longer then scalp will be high risk and I will avoid that without consolidation on the 30/60 min chart. I’m still very defensive and I’m still more with cash and I’m not sad with that. Maybe someone think that I’m missing opportunities, I think that I just wait lower risk.
Good day!
NOTE: about next 10 days my site will be at http://www.pop35.com.hr/ I will be there until my official site will back (they said about 10 days). Thank you all for understanding.
After NR7 day we can expect trend day and that is what we get at Tuesday. Unfortunately it was not direction what we hoped. It was again buying rumor and selling news market action. After news came out, indices started with selling. On the 60 min charts we can see that pace was very strong with high volume what clear signal for direction was. For the rest of the day it was trend day and indices closed near lows. The QQQQ still look strongest but when we see pace and volume all charts suggest for selling continuation next days. The DIA forming double bottom possibility, the SPY have some room until previous low and we have good odds that indices will stop yesterday action at that area. Since market is extremely nervous last weeks it is hard to say what support area will hold. But if 60 min support area won’t hold and if indices will continue with selling action the odds for the DIA and the SPY to reach previous weekly low will increase and it will be high possibility for that scenario. Usually after trend day we will see consolidation day, but lately I saw more then one trend day in the row so I think that we must pay attention on that too. New short trade longer then scalp will be high risk and I will avoid that without consolidation on the 30/60 min chart. I’m still very defensive and I’m still more with cash and I’m not sad with that. Maybe someone think that I’m missing opportunities, I think that I just wait lower risk.
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