Market commentary for 06/17/2009
Good day,
At Tuesday indices did exactly what we expected. I’m really proud on all of us in trading room that we didn’t fall on morning strength fake and you all who read my Monday column remember that I will follow 10 and 20sma on the 60 min chart for possible 3rd selling wave. If we look at 60 min chart we can see that was exactly scenario what we got at Tuesday. The SPY and the DIA started day with small gap what was filled right after the open and continued with strength. But if you look at 5 min chart you can see that pace was very weak and it was choppy slow move up. It was exactly what I expected and after both reached 60 min 20sma selling pressure started and held for the rest of the day. The QQQQ did same, only 20sma was trigger for selling. I was expect that SPY 200sma will hold little longer what is good news for open shorts and if we back again at 60 min charts we can see that indices have room for another selling round, but right now is to late for any longer short setup because we can see gap down and opportunity for new intraday short will gone.
Good day,
At Tuesday indices did exactly what we expected. I’m really proud on all of us in trading room that we didn’t fall on morning strength fake and you all who read my Monday column remember that I will follow 10 and 20sma on the 60 min chart for possible 3rd selling wave. If we look at 60 min chart we can see that was exactly scenario what we got at Tuesday. The SPY and the DIA started day with small gap what was filled right after the open and continued with strength. But if you look at 5 min chart you can see that pace was very weak and it was choppy slow move up. It was exactly what I expected and after both reached 60 min 20sma selling pressure started and held for the rest of the day. The QQQQ did same, only 20sma was trigger for selling. I was expect that SPY 200sma will hold little longer what is good news for open shorts and if we back again at 60 min charts we can see that indices have room for another selling round, but right now is to late for any longer short setup because we can see gap down and opportunity for new intraday short will gone.
On the daily charts we can see prove for 60 min charts. The DIA $85 is first support area, for the SPY it is $91 and 200sma support area and for the QQQQ is previous high what is now support. I think that we will see more selling on the daily charts in the future, but not before correction and that is what I will looking for Wednesday. I’m interested for weakness in the morning to protect profit, but I won’t take new short setup (unless something will come out after the open for day trade). I will be focused for 60 min correction. After three selling waves and possible 3d CCI for SPY and DIA I think that we can see good odds for that possibility. I don’t know will that be in the morning or during doldrums time, or will that be at all. I just know that, for now, look as good opportunity for low risk setups and charts support that idea. If something will change I will send updates in the room. For the end I like that you all look at SPY daily chart. It is great example what can happen if 3rd try won’t work and that is reason what I still keep lines. I mention that several times and now we can see result. If anyone will have any question about that feel free to contact me.
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