The Financial sector continues to bleed out jobs and all economic reports continue to come out worse than expected. Given the catastrophic nature of the news, the market is holding the "cheap valuations" zone fairly well, although yesterday traders did the usual end of day dump and run (this time the Dow dropped about 125 points in the last 15m). The market is probably going to stay susceptible to the "were all gonna die, I'm losing my bonus and my Ferrari, help help help" end-of-day selling by some Hedgies. And I suspect that Smart Money is going to let them do it in order to take advantage of lower prices after the selling.
For now, I expect the "cheap valuations" zone to hold simply because it has been holding. We are at another important short term support point in the 8,250 area. A breach of 8,200 probably leads to a drop back down into the 7,900 - 8,000 area. If the market holds the real body of the Hammer/Engulfing from Thursday then it could run back up to the 8,800 area.
Here is a chart of the Dow: (click on image to enlarge)
I will be out of the office (no VC etc.) Wednesday - Friday attending to funeral services. I appreciate all the nice comments from yesterday. I will open posts in the morning so that you can continue supporting one another with your trading.
Dwight - Continued thoughts & prayers for you & your family.
ReplyDeleteThanks for the extra effort to provide market analysis today.
Dwight:
ReplyDeleteThanks so much for all you do for me/us.
If there is something we can do for you, please let me/us know.
You and your family are in my thoughts and prayers.
Robert
CANI_212
Bless you and all your family Dwight;Deepest Peace be with you all.
ReplyDeleteFrancis
Dwight
ReplyDeleteMy thoughts and prayers are with you
Dwight,
ReplyDeleteAs with everyone here, you and your family continue to be in my thoughts and prayers. Peace be with all of you.
Claudia
Best wishes and thoughts to you and your family Dwight. Thanks for still finding the time to post and help all of us.
ReplyDeleteGarrett
Tried to get a good price around $6.50 ish for a SPY $85 or 86 Nov call but didnt' get it. Now it's really bounced up so will have to wait and see.
ReplyDeleteDetermined not to be chased into a higher price.
Good profits all!
Francis
Hi Dwight. Sorry to hear the news. Hope everything goes as well as it can.
ReplyDeleteThanks again for all your efforts here.
Dwight,
ReplyDeleteI hope you and your family have many good memories of your loved one to help get through these difficult times.
Don
Dwight,
ReplyDeleteMy thoughts are with you. Hope everything works out for the best.
Francis,
It looks like the market is setting up for a bounce on the 15s. The fact that we made a double bottom and support is holding pretty well makes me believe that a bounce will last throughout the day. I'll put a stop in at just under 85 on the spy.
Joe
Dwight, thank you for your continued support and help during this difficult time for you and your family. My thoughts and prayers go out to you and your wife.
ReplyDelete-Scott
Missed a call entry on dia on a higher hi with the 5's, but this range seems pretty tight. Might wait to see if we can break 8500.
ReplyDeleteI dont know if this range today is because the big boys are talking to congress right now or if its just this price zone (8250 to 8500).
Market came to me for a change...
ReplyDeleteFilled 1 Cntrct GILD Dec $45 call at $2.90 which was my target price last time around.
Reasoning still same, $45 area is support Stop at $43 low of the low candle of the 12th.
Target $48 area short term resistance.
Good trading all.
Francis
Descending triangle on the 60's? See how it plays out. I really don't want to enter anything until the 60's start making higher highs and lows or until a break of support. See what happens...
ReplyDeleteJoe
Wow, hit 85.00 on dia then straight down. Didnt see any clear entry for a put that was to bad.There has been no flags to enter on and I hate to chase. Looks like we are going lower just broke 8200 on the dow.
ReplyDeleteDwight,
ReplyDeleteI'm sorry to hear about the loss of your mother-in-law. I'm sure she was brave and fought with everything she had. I lost both at a young age, so I know the feelings first hand. Your wife can be assured that a parent lives within us every day in everything they've instilled in us throughout our lives. It's our job to repeat that in our children and carry on their teachings. I know my parents would be proud of my little ones. Whatever life may deliver to us children, always be proud of who we are because of them.
With Deepest Sympathy,
Gary
Looks like big money stepped in again today and bought at support. Let's see if this one actually holds up. Will look to enter calls tomorrow morning if the setups are there.
ReplyDeleteI like your play on GILD Francis. Nice channel it has going on. I bet if we get a nice move out of the market it'll hit 49.
Joe
Dwight,
ReplyDeleteI give my deepest sympathies, my thoughts and my prayers to you and your family at this time.
Gina
Dwight, so sorry about the news, no words can give comfort to losing someone, it is hard, however she is in a better place where there is no suffering..God bless you and your family
ReplyDeleteSeni
Dwight
ReplyDeleteyou and your family are in our thoughts and prayers sorry for your loss.
Jim
Hi Gang,
ReplyDeleteIt's really nice to see everyone posting their condolences. I'm sure Dwight and his family appreciate it. I see some new names here, welcome!
Wow, another crazy day! Sold my RIMM calls that I bought Friday. One of the better trades I've had lately. Left $1/contract on the table but I put a limit order in and left for a while. Holding my DIA calls (and breath) anticipating some follow through from Thursday.
Robert,
Are you still following Jeff?
Steve,
I know Dwight's been following the 15-60's swing trading on VC. It's so wild on the 5's right now.
Francis,
Real money yet?
Gary
Hello Gary, Joe and others in Team Dwight!
ReplyDeleteThanks for the encouragement Joe and Gary. Actually,I've only ever been posting and sharing my real trades on this Blog. Obviously I'm careful what I say when I am on VC and you all know the Dwight Drill there!
Pleased so far with nibbler entry with my GILD call. The price dropped as low as $2.50 actually and I would have liked to have picked up another low bid contract but had to go work, so decided to see how market would end and decide tomorro.
Boy what an end in the last 15 mins or so eh?
SPY Calls look worthwhile for tomorrow.
Good trading all!
Francis
Gary, I figure to be in and out with 1.00 to 2.00 moves and if I wait for the 15's or longer I miss my entries with this crazy market.
ReplyDeleteI missed the call trade this morning for 1.25 to obvious resistance at 85.00 and didnt want to chase the way down. Then when it went below 83.00, " forget about it ".
I ended up with no trades and couldn't watch the close or I would've been in calls on the 83.50 break.
At least today we bought the close for a change. Hopefully thats a good sign.
Francis,
ReplyDeleteActually SPY puts will probably be in order. Support is getting weaker/ weaker each time. With expiration week we can expect a lot of volatility and if the auto bailout goes through, I don't think The Street is going to like it. But, it is what it is.
Joe,
Yea, some days it's better not to trade than to chase or take bad ones. But then again, they're hard to differentiate the good from the bad nowadays.
Dwight,
ReplyDeleteSo very sorry to hear the news. I will keep you and your family in my prayers.
Susanne