Market commentary for 03/24/2009
Good day,
The treasury finally revealed the details to its plan and Wall Street seemed to like it. The indices opened under Friday’s high and the break above it triggered a bear trap. The rest of the day was textbook trend day with strong buying into the close. Despite that possibility I was skeptical to go long after Friday’s high breakout. The pace was weak and the volume was not that strong as I would like to see it. We took few long trades despite that concern and they worked out. Since the trend day continued all longs did well and I will expect buying continuation for Tuesday morning. On the daily charts we can see the indices have room for that scenario. Since we got big daily green bar it will be hard to find good new long setup, but I expect that already open trades have good odds to reach their target areas. We all know that after trend day we can expect a consolidation day and after the possible buying continuation in the morning I will look for a correction and consolidation from Monday's run. I still don’t think the bear market is over, but I believe that weekly low will hold for some time and in we can look for consolidation on the weekly charts.
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. danded2005@inet.hr
Good day,
The treasury finally revealed the details to its plan and Wall Street seemed to like it. The indices opened under Friday’s high and the break above it triggered a bear trap. The rest of the day was textbook trend day with strong buying into the close. Despite that possibility I was skeptical to go long after Friday’s high breakout. The pace was weak and the volume was not that strong as I would like to see it. We took few long trades despite that concern and they worked out. Since the trend day continued all longs did well and I will expect buying continuation for Tuesday morning. On the daily charts we can see the indices have room for that scenario. Since we got big daily green bar it will be hard to find good new long setup, but I expect that already open trades have good odds to reach their target areas. We all know that after trend day we can expect a consolidation day and after the possible buying continuation in the morning I will look for a correction and consolidation from Monday's run. I still don’t think the bear market is over, but I believe that weekly low will hold for some time and in we can look for consolidation on the weekly charts.
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. danded2005@inet.hr
Wish you all good trading!!!
Kind regards.
Ivica
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