Market commentary for 05/04/2009
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Good day,
The markets weathered another week of earnings, Chrysler's bankruptcy and the coming stress tests for the nation’s banks. If we look at the weekly charts we can see that indices made slightly new high on lower volume. We can also see on the weekly charts the indices reached a resistance area which can result with a double top pattern. Right now we don't have a clear pattern. Since we don’t have a clear sign and the indices saw a new high it is hard to predict what kind of action we can expect next week. Unfortunately the daily charts don't give us a better picture. The daily volume was lower on Friday and the indices closed in the middle of Thursday's range. The QQQQ formed a pivot bar on Thursday but Friday didn’t bring continuation. Since we don’t have a weekly signal nor a daily signal it is hard to expect one from any other smaller time frame. My focus is to find low risk setups and I believe that I will find something during my weekend scanning but until indices give us a signal they all will be higher risk. It is very important to take fewer trades and to trade with less risk. This is only way to trade right now. We can bet the weekly resistance will hold and we can bet the indices will continue to go up and we can bet that we will see a base and right now that all is in line with a bet nothing more. To be more certain in any of these scenarios I need to get chart help. Right now the charts don’t help us to determine the direction for next week. I will look for a correction, but until the daily charts make the first move that will be just be a guess and I wont trade that. Until then I want to repeat again: risk for new setups will be high risk and please keep that in mind. I will look for weaker and stronger charts in both directions and hope that I will find an “own way” chart.
Effective Tuesday May 5, 2009, the trading room and daily articles will be assessable to paid members only. You can subscribe for very popular price under Subscribers. If you have any questions please contact me.
Good day,
The markets weathered another week of earnings, Chrysler's bankruptcy and the coming stress tests for the nation’s banks. If we look at the weekly charts we can see that indices made slightly new high on lower volume. We can also see on the weekly charts the indices reached a resistance area which can result with a double top pattern. Right now we don't have a clear pattern. Since we don’t have a clear sign and the indices saw a new high it is hard to predict what kind of action we can expect next week. Unfortunately the daily charts don't give us a better picture. The daily volume was lower on Friday and the indices closed in the middle of Thursday's range. The QQQQ formed a pivot bar on Thursday but Friday didn’t bring continuation. Since we don’t have a weekly signal nor a daily signal it is hard to expect one from any other smaller time frame. My focus is to find low risk setups and I believe that I will find something during my weekend scanning but until indices give us a signal they all will be higher risk. It is very important to take fewer trades and to trade with less risk. This is only way to trade right now. We can bet the weekly resistance will hold and we can bet the indices will continue to go up and we can bet that we will see a base and right now that all is in line with a bet nothing more. To be more certain in any of these scenarios I need to get chart help. Right now the charts don’t help us to determine the direction for next week. I will look for a correction, but until the daily charts make the first move that will be just be a guess and I wont trade that. Until then I want to repeat again: risk for new setups will be high risk and please keep that in mind. I will look for weaker and stronger charts in both directions and hope that I will find an “own way” chart.
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