Market commentary for 02/20/2009
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.
Not big changes from Wednesday. I can almost just copy/paste what I said before. Only difference is that today is option day so we can expect more intraday volatility action what will just increase trading risk for new trades. The DIA is already at support area while the SPY and the QQQQ trying to break 60 min consolidations. We can see that both have room for move down and also equal move will lead them right to previous supports on the daily charts (blue lines). On the option day I don’t like to watch small time frames (2, 5 min) because can be very whippy, so I’m more focused on the bigger time frames to determine possible intraday trend. That will be my focus for today too. If selling pace will increase we will have high odds for SPY and QQQQ to see equal move and daily support areas. Both are very strong right now and in case that will be reached I believe that both will hold. At the same time the DIA will made new daily low what is not unrespectable, since after reached daily low support the DIA didn’t have strength for any significant correction. In other case if selling pace will continue to be very gradual then again odds for correction will increase what will also increase trading risk before that moment. I want to say that I don’t have big expectations for Friday. I still believe that the SPY will reach previous low and then I will expect some bigger correction (not trend reversal for now, just correction). Now, will that be before 60 min correction or without correction that is what we must see)For now charts suggesting that market will go down without bigger correction and I’m with bears, for now. Usually, I’m not very active at option day because if intraday whippy action will continue, that is high risk for me and I will be less active then usual.
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.
Not big changes from Wednesday. I can almost just copy/paste what I said before. Only difference is that today is option day so we can expect more intraday volatility action what will just increase trading risk for new trades. The DIA is already at support area while the SPY and the QQQQ trying to break 60 min consolidations. We can see that both have room for move down and also equal move will lead them right to previous supports on the daily charts (blue lines). On the option day I don’t like to watch small time frames (2, 5 min) because can be very whippy, so I’m more focused on the bigger time frames to determine possible intraday trend. That will be my focus for today too. If selling pace will increase we will have high odds for SPY and QQQQ to see equal move and daily support areas. Both are very strong right now and in case that will be reached I believe that both will hold. At the same time the DIA will made new daily low what is not unrespectable, since after reached daily low support the DIA didn’t have strength for any significant correction. In other case if selling pace will continue to be very gradual then again odds for correction will increase what will also increase trading risk before that moment. I want to say that I don’t have big expectations for Friday. I still believe that the SPY will reach previous low and then I will expect some bigger correction (not trend reversal for now, just correction). Now, will that be before 60 min correction or without correction that is what we must see)For now charts suggesting that market will go down without bigger correction and I’m with bears, for now. Usually, I’m not very active at option day because if intraday whippy action will continue, that is high risk for me and I will be less active then usual.
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