Market commentary for 06/03/2009
Good day,
Housing numbers came in much better than expected and that move the markets early on. The rest of the day we spent chopping around that high to the open price. It was consolidation day after the strong Monday action which is not unusual. That is a good sign for future action to move up since we need rest. Today was a very hard day for new setups because we didn’t have much action. Actually it was a range day and that increases the odds for a move on Wednesday. From a risk point of view I hope we see a few more consolidation day’s because it would enhance the risk level for a swing continuation. If the indices continue with their move up I will be on that side. Important to note the daily breakup is strong which suggests a continuation. If that is the case right at the open will use 50% of my usual risk since the rest was not strong or long enough. I will pay attention to the 60 min 20sma. It is very an important support area for trend continuation. For low risk setups it will be best if 60 min range continues until the 20sma and then we bounce from it, but very rarely do we get what we really like so we must use caution. Bias is up but we can see 60 min correction first.
Good day,
Housing numbers came in much better than expected and that move the markets early on. The rest of the day we spent chopping around that high to the open price. It was consolidation day after the strong Monday action which is not unusual. That is a good sign for future action to move up since we need rest. Today was a very hard day for new setups because we didn’t have much action. Actually it was a range day and that increases the odds for a move on Wednesday. From a risk point of view I hope we see a few more consolidation day’s because it would enhance the risk level for a swing continuation. If the indices continue with their move up I will be on that side. Important to note the daily breakup is strong which suggests a continuation. If that is the case right at the open will use 50% of my usual risk since the rest was not strong or long enough. I will pay attention to the 60 min 20sma. It is very an important support area for trend continuation. For low risk setups it will be best if 60 min range continues until the 20sma and then we bounce from it, but very rarely do we get what we really like so we must use caution. Bias is up but we can see 60 min correction first.
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