Market commentary for 02/18/2009
Good day!
NOTE: 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.
Day started with big gap down under previous low on the daily charts for the DIA and the SPY. The DIA was again weakest and closed close to November lows. Since gap was strong it was hard to expect that gap will be filled easily right after the open. Intraday action didn’t bring much for trading what we can see on the 60 min charts. It was rather range action without trend and with close at lows. That suggest for more selling action at Wednesday morning. On the daily chart we can see that DIA have some room to reach previous low, while the SPY has much more for it. On the SPY daily chart I don’t see any bigger support area until November low and since selling pace, what started after senate decision, is stronger then selling pace what started after the New Year, we can expect more selling in the future. Yesterday volume was higher what another confirmation for clear down trend is. Right now it will be high risk to take swing short trade, because in the bear market we can see strong intraday bounces, and safest place will be to stick with intraday setups on the smaller time frames. That will be my focus and also like to note again that cash is another good position. For Wednesday morning I will expect to see selling continuation, but also we can look for intraday correction because nothing won’t go in any direction without rest. On the daily DIA chart we can see that CCI come to oversold area, also it is not far on the SPY daily chart. I don’t think that SPY will see November low tomorrow, but after consolidation (correction) charts suggest that will be case in the future. This is very dangerous market with huge moves so be smart. It is important to survive and I think that is main occupation right now.
Good day!
NOTE: 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.
Day started with big gap down under previous low on the daily charts for the DIA and the SPY. The DIA was again weakest and closed close to November lows. Since gap was strong it was hard to expect that gap will be filled easily right after the open. Intraday action didn’t bring much for trading what we can see on the 60 min charts. It was rather range action without trend and with close at lows. That suggest for more selling action at Wednesday morning. On the daily chart we can see that DIA have some room to reach previous low, while the SPY has much more for it. On the SPY daily chart I don’t see any bigger support area until November low and since selling pace, what started after senate decision, is stronger then selling pace what started after the New Year, we can expect more selling in the future. Yesterday volume was higher what another confirmation for clear down trend is. Right now it will be high risk to take swing short trade, because in the bear market we can see strong intraday bounces, and safest place will be to stick with intraday setups on the smaller time frames. That will be my focus and also like to note again that cash is another good position. For Wednesday morning I will expect to see selling continuation, but also we can look for intraday correction because nothing won’t go in any direction without rest. On the daily DIA chart we can see that CCI come to oversold area, also it is not far on the SPY daily chart. I don’t think that SPY will see November low tomorrow, but after consolidation (correction) charts suggest that will be case in the future. This is very dangerous market with huge moves so be smart. It is important to survive and I think that is main occupation right now.
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