Market commentary for 06/05/2009
Good day,
The initial job report came in pretty much as expected. GS said oil is going back to 95 bucks and the markets had a big day of nothing. Tuesday's market action was worthless for low risk trading and the same was with Thursday's action. I hope this is not indicative of summer trading already. In almost every market commentary I mention risk level and I hope you keep that in mind because that saved me yesterday. We are not always correct in market direction with and I was wrong on Thursday. I had a more bearish bias and the day started well, but now I can say I was wrong. It was not first or last time but it is important to have reasonable risk and then won’t be very expensive. We saw strong market action with low volume and weak buying pace, but still long. The QQQQ closed on new highs, the DIA closed very close to the previous high while the SPY is not far from it also. It appears everyone is waiting for tomorrow's unemployment news (8:30 am) and because of that overnight holding is again high risk. We have fair odds for gap open. I don’t have strong bias for intraday action without good pattern and same is with daily charts. We can see the daily charts are strong, above all ma’s and the volume decline can be very dangerous because we can see a sharp move down any time. Because of that I will stick with intraday setups.
Good day,
The initial job report came in pretty much as expected. GS said oil is going back to 95 bucks and the markets had a big day of nothing. Tuesday's market action was worthless for low risk trading and the same was with Thursday's action. I hope this is not indicative of summer trading already. In almost every market commentary I mention risk level and I hope you keep that in mind because that saved me yesterday. We are not always correct in market direction with and I was wrong on Thursday. I had a more bearish bias and the day started well, but now I can say I was wrong. It was not first or last time but it is important to have reasonable risk and then won’t be very expensive. We saw strong market action with low volume and weak buying pace, but still long. The QQQQ closed on new highs, the DIA closed very close to the previous high while the SPY is not far from it also. It appears everyone is waiting for tomorrow's unemployment news (8:30 am) and because of that overnight holding is again high risk. We have fair odds for gap open. I don’t have strong bias for intraday action without good pattern and same is with daily charts. We can see the daily charts are strong, above all ma’s and the volume decline can be very dangerous because we can see a sharp move down any time. Because of that I will stick with intraday setups.
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