Market commentary for 02/19/2009
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.
We saw another range day with very little trading opportunities. One was right at start with selling continuation and another is bounce from support. All after was again whippy range action without intraday trend what we can clear see on the 60 min chart. Day started exactly as we expected and the DIA reached November support area, and at the same time the SPY did same what was signal for possible reversal. We got it, but it wasn’t anything special, it was just back to 60 min range. For the rest of the day the DIA and the SPY closed at lows what increase opportunity for double bottom on the 60 min chart, while the QQQQ closed in the middle of the range. For Thursday trading risk will increase because indices act like want see more selling, especially the SPY, but also they are at support area and they can start with 60 min correction anytime. We know that biggest bounces we will see in the bear market and that will increase trading risk even for intraday setups. We must careful watch intraday action and be focused on pace and volume. Pace will tell us what can happen. If selling will continue we want see stronger break down from 60 min range, not just gradual move down, because that action will increase possibility for bounce and 60 min reversal action. I will also use smaller time frames to follow pace in case that correction will start. Generally I’m still with bears and I think that we will see more selling pressure next days, but also I will be focused on correction before that what can be used for long trades. If market will continue with slow selling I will stay flat with new trades, unless there will be “own way” chart like bear trap or clear intraday pattern.
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.
We saw another range day with very little trading opportunities. One was right at start with selling continuation and another is bounce from support. All after was again whippy range action without intraday trend what we can clear see on the 60 min chart. Day started exactly as we expected and the DIA reached November support area, and at the same time the SPY did same what was signal for possible reversal. We got it, but it wasn’t anything special, it was just back to 60 min range. For the rest of the day the DIA and the SPY closed at lows what increase opportunity for double bottom on the 60 min chart, while the QQQQ closed in the middle of the range. For Thursday trading risk will increase because indices act like want see more selling, especially the SPY, but also they are at support area and they can start with 60 min correction anytime. We know that biggest bounces we will see in the bear market and that will increase trading risk even for intraday setups. We must careful watch intraday action and be focused on pace and volume. Pace will tell us what can happen. If selling will continue we want see stronger break down from 60 min range, not just gradual move down, because that action will increase possibility for bounce and 60 min reversal action. I will also use smaller time frames to follow pace in case that correction will start. Generally I’m still with bears and I think that we will see more selling pressure next days, but also I will be focused on correction before that what can be used for long trades. If market will continue with slow selling I will stay flat with new trades, unless there will be “own way” chart like bear trap or clear intraday pattern.
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