Market commentary for 03/31/2009
Good day,
Dear trader, I invite you to visit me at: http://www.ivicatradingcharts.com/ under daily articles you can see every day trading ideas and commentaries. Also I like to invite you join us in the live trading room. It is absolutely free and I believe that results are good reason to be with us.
The markets used concern over the banks and the auto industry to take profits. Hopefully this is just that and not the continuation of the big bad bear. The indices opened with a strong gap down and it was expected that strong of a gap would have a hard time to be filled. The indices continued the selling pressure and they reached the 03/23/2009 gap support area from last Monday which was mentioned in the trading room that will be a strong support area. Since Friday brought a NR7 bar we had fair odds for trend day. The support area is holding for now and rest of the day we saw a very choppy market without any low risk possibilities for new setups. Since the indices reached strong resistance last week (20sma weekly for SPY and DIA) we expected a correction from highs, but Monday's open didn’t give us much opportunity to get short because of the gap down and selling pressure right after the open. The only good opportunity was the short setup under 5 min low with a stop above high at setup point (gap rule) and those who missed that didn’t have much chances for the rest of the day. I still think we can expect more of a correction during the next few days but before that we have fair odds for more of a 60 min correction to 10/20sma. Because of that I will be focused for intraday setups as lower risk places for tomorrow trades and I will look for possible swing short setups if market starts selling again. Generally I will look for intraday setups on the long side. I will use them for day trades and if market is weak I will use them for possible swing short ideas.
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,
Dear trader, I invite you to visit me at: http://www.ivicatradingcharts.com/ under daily articles you can see every day trading ideas and commentaries. Also I like to invite you join us in the live trading room. It is absolutely free and I believe that results are good reason to be with us.
The markets used concern over the banks and the auto industry to take profits. Hopefully this is just that and not the continuation of the big bad bear. The indices opened with a strong gap down and it was expected that strong of a gap would have a hard time to be filled. The indices continued the selling pressure and they reached the 03/23/2009 gap support area from last Monday which was mentioned in the trading room that will be a strong support area. Since Friday brought a NR7 bar we had fair odds for trend day. The support area is holding for now and rest of the day we saw a very choppy market without any low risk possibilities for new setups. Since the indices reached strong resistance last week (20sma weekly for SPY and DIA) we expected a correction from highs, but Monday's open didn’t give us much opportunity to get short because of the gap down and selling pressure right after the open. The only good opportunity was the short setup under 5 min low with a stop above high at setup point (gap rule) and those who missed that didn’t have much chances for the rest of the day. I still think we can expect more of a correction during the next few days but before that we have fair odds for more of a 60 min correction to 10/20sma. Because of that I will be focused for intraday setups as lower risk places for tomorrow trades and I will look for possible swing short setups if market starts selling again. Generally I will look for intraday setups on the long side. I will use them for day trades and if market is weak I will use them for possible swing short ideas.
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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