Market commentary for 04/28/2009
Effective Tuesday May 5, 2009, the trading room will be assessable to paid members only. If you have any questions please contact me.
Good day,
The markets had a hard time digesting the possible effects of the swine flu. Oil, airlines, hotels were hit hard. All in all the day was pretty typical. First a gap down and then the indices filled the gap again and then back to Friday highs. It was a strong gap down for the SPY and the DIA, barely under Friday low. The QQQQ was the strongest again and made a new high, barely. After that we saw different action than the last few days. This time the 15 min consolidation at the highs didn’t hold and we saw intraday reversal and back to the morning lows and despite the whippy action in last 30 min the indices closed weak. The SPY and DIA were the weakest, but this time the QQQQ has a 60 min avalanche possibility and that can be a sign for more of a correction which I’m looking for. Don't misunderstand me, I don’t like it when the market goes down, because it is much easier to make money in a bull market, but as a trader I’m interested in healthy moves and low risk setups and right now that is on the short side because of the weekly resistance. On the Daily SPY/DIA chart we can see that rounding top possibility that I explained in the weekend commentary. Note that SPY is still above the daily 10sma. On the QQQQ 60 min chart we can see a new high and another CCI low which suggests a move down. For Tuesday I will look for more short setups and I will follow the SPY 60 min rounding highs and QQQQ phoenix possibility to support those ideas. We took several short trades on Monday and I will also look to add to positions if the market supports us.
Effective Tuesday May 5, 2009, the trading room will be assessable to paid members only. If you have any questions please contact me.
Good day,
The markets had a hard time digesting the possible effects of the swine flu. Oil, airlines, hotels were hit hard. All in all the day was pretty typical. First a gap down and then the indices filled the gap again and then back to Friday highs. It was a strong gap down for the SPY and the DIA, barely under Friday low. The QQQQ was the strongest again and made a new high, barely. After that we saw different action than the last few days. This time the 15 min consolidation at the highs didn’t hold and we saw intraday reversal and back to the morning lows and despite the whippy action in last 30 min the indices closed weak. The SPY and DIA were the weakest, but this time the QQQQ has a 60 min avalanche possibility and that can be a sign for more of a correction which I’m looking for. Don't misunderstand me, I don’t like it when the market goes down, because it is much easier to make money in a bull market, but as a trader I’m interested in healthy moves and low risk setups and right now that is on the short side because of the weekly resistance. On the Daily SPY/DIA chart we can see that rounding top possibility that I explained in the weekend commentary. Note that SPY is still above the daily 10sma. On the QQQQ 60 min chart we can see a new high and another CCI low which suggests a move down. For Tuesday I will look for more short setups and I will follow the SPY 60 min rounding highs and QQQQ phoenix possibility to support those ideas. We took several short trades on Monday and I will also look to add to positions if the market supports us.
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