Market commentary for 04/03/2009
Good day,
I invite you to visit me at: http://www.ivicatradingcharts.com/. Click on daily articles you can see the daily trading ideas and commentaries. I would also like to invite you to join us in the live trading room. It is absolutely free and you will find the results beneficial and profitable.
While the economy continues to post terrible numbers, why not change the rules and we get a rally. They are changing the mark to market rules and the indices never really looked back. We had another gap opening which absolutely ruins all the setup I scan for in the evening. After strong gap we need to use the gap rule and change our trading plans. The indices opened under previous daily high but that was not problem and they made new highs. On the daily charts we can see the DIA and the SPY need to deal with 100sma resistance area before they have any free room for another advance. The QQQQ reached its previous high and after the break up during afternoon it closed right under so resistance is still holding for it. Market is extended on the daily charts, but I think that if 20sma 60 min will hold and if yesterday gap support area will hold, they have room for more of an upside move. It is hard to predict the exact top, but despite of sell off before the close the 60 min charts are still bullish. I will draw the possible scenario if the support area does hold. It will show what to expect if the indices stay strong. If the 20sma 60 min doesn't hold then I will change my bias, or if the selling pressure which started around 15:00 pm ET continues with strong pace. I will follow the market action and I will scan for the strongest and weakest names for intraday patterns that will be again be the safest place for low risk setups. I hope day does not start with another gap because that destroy my watch list and ideas what I found during night.
Good day,
I invite you to visit me at: http://www.ivicatradingcharts.com/. Click on daily articles you can see the daily trading ideas and commentaries. I would also like to invite you to join us in the live trading room. It is absolutely free and you will find the results beneficial and profitable.
While the economy continues to post terrible numbers, why not change the rules and we get a rally. They are changing the mark to market rules and the indices never really looked back. We had another gap opening which absolutely ruins all the setup I scan for in the evening. After strong gap we need to use the gap rule and change our trading plans. The indices opened under previous daily high but that was not problem and they made new highs. On the daily charts we can see the DIA and the SPY need to deal with 100sma resistance area before they have any free room for another advance. The QQQQ reached its previous high and after the break up during afternoon it closed right under so resistance is still holding for it. Market is extended on the daily charts, but I think that if 20sma 60 min will hold and if yesterday gap support area will hold, they have room for more of an upside move. It is hard to predict the exact top, but despite of sell off before the close the 60 min charts are still bullish. I will draw the possible scenario if the support area does hold. It will show what to expect if the indices stay strong. If the 20sma 60 min doesn't hold then I will change my bias, or if the selling pressure which started around 15:00 pm ET continues with strong pace. I will follow the market action and I will scan for the strongest and weakest names for intraday patterns that will be again be the safest place for low risk setups. I hope day does not start with another gap because that destroy my watch list and ideas what I found during night.
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