Market commentary for 03/19/2009
Good day,
The FED said they were going to accommodate and do everything in its power to stem this recession. Today they even surprised the most optimistic folks, they committed to buying one trillion dollars of mortgage backed securities in an effort to lower mortgage rates some more. Hopefully that will start some housing being bought and sold.
The day started with small gap down and the markets weakness showed the gap couldn't be filled after the open. We saw selling pressure right into the 60 min 10sma. Since it was FED day and strong 60 min support area we took this low and for the rest of the day we got another move up. Of course it was high risk to stay in the trade into a announcement. After FED announcement the indices exploded to the upside and continued. The SPY reached the 50sma daily, the QQQQ closed above 100sma daily and the DIA reached the 75.50 resistance areas. Volume finally increased which we can see on the daily chart. This is really an incredible market reversal after last weeks low. I still think the recession is not over, but for now we have fair odds that lows will hold for some time. I don’t think when we get a correction and we will get one, that we will see a complete pullback. I just hope that market will support individual stock action and that we can again look for “own way” charts and that we can again compare market action with individual stocks. That will be my focus. I will look for intraday setups, as usual, For ETF and FX ideas, but now I will be focused more on possible “own way” swing setups. I don’t have a clear bias for tomorrow. Lately the day the after the FED we reverse. Because of that I will be focused for possible a reversal and correction from these highs.
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 FED said they were going to accommodate and do everything in its power to stem this recession. Today they even surprised the most optimistic folks, they committed to buying one trillion dollars of mortgage backed securities in an effort to lower mortgage rates some more. Hopefully that will start some housing being bought and sold.
The day started with small gap down and the markets weakness showed the gap couldn't be filled after the open. We saw selling pressure right into the 60 min 10sma. Since it was FED day and strong 60 min support area we took this low and for the rest of the day we got another move up. Of course it was high risk to stay in the trade into a announcement. After FED announcement the indices exploded to the upside and continued. The SPY reached the 50sma daily, the QQQQ closed above 100sma daily and the DIA reached the 75.50 resistance areas. Volume finally increased which we can see on the daily chart. This is really an incredible market reversal after last weeks low. I still think the recession is not over, but for now we have fair odds that lows will hold for some time. I don’t think when we get a correction and we will get one, that we will see a complete pullback. I just hope that market will support individual stock action and that we can again look for “own way” charts and that we can again compare market action with individual stocks. That will be my focus. I will look for intraday setups, as usual, For ETF and FX ideas, but now I will be focused more on possible “own way” swing setups. I don’t have a clear bias for tomorrow. Lately the day the after the FED we reverse. Because of that I will be focused for possible a reversal and correction from these highs.
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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