Market commentary for 03/05/2009
Good day!
The news from China was pretty good and the commodities and materials rallied taking all the markets with them. The day started with strong gap up, right under Tuesday's high. Technically, a breakout above Tuesday's high was a bear trap and that was our focus right after the open. Since the indices did not open above Tuesday's high we took SSO and QLD above the 5 min high with small lots just in case a strong exhaustion move started right after it. The plan was to wait 15 min and then buy above it. Indices started with a correction after the open gap so we had time to prepare for a breakout. Gap was strong enough that it did not fill and after the breakout trap action started. Since the trap was against a main move and whippy intraday action is not something strange and also wasn't unexpected to see profit taking before the end. The number of daily CCI charts saw setups and I think that we have good odds for larger correction. I also think we can see more whippy action. In that case the only way not be stopped is to use bigger stops. Technically stops for indices are under Tuesday low (if we use CCI setup). Tomorrow I will watch for more upside and focus will be on swing long setups. During market hours I will scan for intraday setups as usual in the room. Right now 20sma 15 min is a very important support area (yesterday every time we bounced from it) and in case of 60 min charts and possible larger rounding lows, it is Tuesday low.
Generally, my focus is with longs and I’m prepared for that intraday action .
Those of you that used to come into the trading room and stopped, I want to tell you 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 news from China was pretty good and the commodities and materials rallied taking all the markets with them. The day started with strong gap up, right under Tuesday's high. Technically, a breakout above Tuesday's high was a bear trap and that was our focus right after the open. Since the indices did not open above Tuesday's high we took SSO and QLD above the 5 min high with small lots just in case a strong exhaustion move started right after it. The plan was to wait 15 min and then buy above it. Indices started with a correction after the open gap so we had time to prepare for a breakout. Gap was strong enough that it did not fill and after the breakout trap action started. Since the trap was against a main move and whippy intraday action is not something strange and also wasn't unexpected to see profit taking before the end. The number of daily CCI charts saw setups and I think that we have good odds for larger correction. I also think we can see more whippy action. In that case the only way not be stopped is to use bigger stops. Technically stops for indices are under Tuesday low (if we use CCI setup). Tomorrow I will watch for more upside and focus will be on swing long setups. During market hours I will scan for intraday setups as usual in the room. Right now 20sma 15 min is a very important support area (yesterday every time we bounced from it) and in case of 60 min charts and possible larger rounding lows, it is Tuesday low.
Generally, my focus is with longs and I’m prepared for that intraday action .
Those of you that used to come into the trading room and stopped, I want to tell you 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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