Market commentary for 02/27/2009
Good day!
The budget was released and Wall Street gave it a big thumb down. The day was high risk and until the 15:00 reversal period the day was very choppy. With the move down at the end of the day we had a trend day down. Despite the weak day I still think we can see rounding bottom pattern. This time I will look for a bigger time frame on the daily charts. The support area is very strong (based on the monthly support) and obviously the bounce from it is very weak for now which will increase the odds for rounding bottom action. My focus will be on the bigger time frame setups. I know that means swing trades that are higher risk to stay in any trade over night during news driven market. But to avoid intraday sharp moves in both directions that is good way to avoid number of intraday stops and then swift reversals. It is also important that we use bigger stops and if we want to stay with lower risk setup (which is very important in this market) we need to use smaller lots than usual. I know that is not popular but any other way is to be a very fast scalp trader and take setups based on small time frames. Third option is cash. I will combine the third and first option because I’m not a good scalp trader my focus will be on possible setups on the 60 min, daily, weekly and monthly charts. If the indices stay weak the next few days and if they continue with short setups (spy and DIA bear flag, while the QQQQ for base) formation, I will change my bias and I will start to look for shorts again. I want enough of a long consolidation for that possibility. Right now my focus is with longs or nothing (cash)
For those of you that use to come into the trading room and stopped, I am back full time and welcome all of you to come again. There is nothing to lose since there is no charge for the service right now. I look forward to seeing you all there.
For those of you that use to come into the trading room and stopped, I want to tell you the I am back full time and welcome all of you to come again. There is nothing to lose since there is no charge for the service right now. I look forward to seeing you all there.
Good day!
The budget was released and Wall Street gave it a big thumb down. The day was high risk and until the 15:00 reversal period the day was very choppy. With the move down at the end of the day we had a trend day down. Despite the weak day I still think we can see rounding bottom pattern. This time I will look for a bigger time frame on the daily charts. The support area is very strong (based on the monthly support) and obviously the bounce from it is very weak for now which will increase the odds for rounding bottom action. My focus will be on the bigger time frame setups. I know that means swing trades that are higher risk to stay in any trade over night during news driven market. But to avoid intraday sharp moves in both directions that is good way to avoid number of intraday stops and then swift reversals. It is also important that we use bigger stops and if we want to stay with lower risk setup (which is very important in this market) we need to use smaller lots than usual. I know that is not popular but any other way is to be a very fast scalp trader and take setups based on small time frames. Third option is cash. I will combine the third and first option because I’m not a good scalp trader my focus will be on possible setups on the 60 min, daily, weekly and monthly charts. If the indices stay weak the next few days and if they continue with short setups (spy and DIA bear flag, while the QQQQ for base) formation, I will change my bias and I will start to look for shorts again. I want enough of a long consolidation for that possibility. Right now my focus is with longs or nothing (cash)
For those of you that use to come into the trading room and stopped, I am back full time and welcome all of you to come again. There is nothing to lose since there is no charge for the service right now. I look forward to seeing you all there.
For those of you that use to come into the trading room and stopped, I want to tell you the I am back full time and welcome all of you to come again. There is nothing to lose since there is no charge for the service right now. I look forward to seeing you all there.
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