Market commentary for 04/06/2009
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.
The jobs report came in and it was in line. Terrible but in line. One in six Americans are now out of work or under employed and it is getting worse. This week earnings season begins and we shall see how this is affecting US companies bottom line. So far RIMM reported and had great earnings and the stock was up 10 points on Friday.
All this on Friday brought us a range day. The SPY and the DIA stayed between Thursdays high and low, while the QQQQ barely broke Thursday high and closed at new highs. It was day with low volume and very choppy intraday action without pace and good opportunities for low risk setups. The only way to take good trade at Friday was to find an “own way” chart and stay with it. It was 4th straight up week and it closed near the high which was more than expected last weekend. On the weekly charts we can see the SPY closed above the 20sma and has room for more upside and the QQQQ also closed above previous the range and now has room without resistance for a new weekly high. I think that we have good odds to see that action. The DIA is again the weakest index and needs to rise above the 20sma weekly but there is enough room for more upside. If we look technically and if we will talk about the individual stock I will say the chart has room for lot more upside to reach the 01/04 high. The US market is still news driven I will be less optimistic and I will go step by step. On the 60 min charts I have drawn lines because that scenario is still valid, but if we will see pace like on the QQQQ chart then the risk will increase. We need to see a bounce and volume for a good trading risk. Everything else will be tricky and ready for correction. I don’t mean an intraday correction, I mean a weekly correction. For next week my bias is still with bulls, but the charts look toppy and I will be very cautious because that can change very fast. Another important thing is that we are entering earning season and that will increase risk for over night trades. I believe that everyone expects bad news and now the only real question is are those numbers already calculated in market action or not. If market can hold well on bad news that will be a very good sign, but we can’t know that right now. We can just recognize risk and for next few weeks I believe the lowest risk will be on intraday setups. I will try to find good swing setup and I hope I will find “own way” charts which is the best solution right now.
Earning season and this being a shortened trading week because of Good Friday will affect trading. Have patience and not let us give back out profits from the last few weeks.
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.
The jobs report came in and it was in line. Terrible but in line. One in six Americans are now out of work or under employed and it is getting worse. This week earnings season begins and we shall see how this is affecting US companies bottom line. So far RIMM reported and had great earnings and the stock was up 10 points on Friday.
All this on Friday brought us a range day. The SPY and the DIA stayed between Thursdays high and low, while the QQQQ barely broke Thursday high and closed at new highs. It was day with low volume and very choppy intraday action without pace and good opportunities for low risk setups. The only way to take good trade at Friday was to find an “own way” chart and stay with it. It was 4th straight up week and it closed near the high which was more than expected last weekend. On the weekly charts we can see the SPY closed above the 20sma and has room for more upside and the QQQQ also closed above previous the range and now has room without resistance for a new weekly high. I think that we have good odds to see that action. The DIA is again the weakest index and needs to rise above the 20sma weekly but there is enough room for more upside. If we look technically and if we will talk about the individual stock I will say the chart has room for lot more upside to reach the 01/04 high. The US market is still news driven I will be less optimistic and I will go step by step. On the 60 min charts I have drawn lines because that scenario is still valid, but if we will see pace like on the QQQQ chart then the risk will increase. We need to see a bounce and volume for a good trading risk. Everything else will be tricky and ready for correction. I don’t mean an intraday correction, I mean a weekly correction. For next week my bias is still with bulls, but the charts look toppy and I will be very cautious because that can change very fast. Another important thing is that we are entering earning season and that will increase risk for over night trades. I believe that everyone expects bad news and now the only real question is are those numbers already calculated in market action or not. If market can hold well on bad news that will be a very good sign, but we can’t know that right now. We can just recognize risk and for next few weeks I believe the lowest risk will be on intraday setups. I will try to find good swing setup and I hope I will find “own way” charts which is the best solution right now.
Earning season and this being a shortened trading week because of Good Friday will affect trading. Have patience and not let us give back out profits from the last few weeks.
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