Watching this market during Holiday trading is like watching a pro football offensive line do the Dance of the Sugar Plum Fairy.....It's not elegant, it's not pretty, and there's a whole lotta stumbling around. Yesterday did present a nice bearish short swing after the Bear Flag on the 15m charts I warned was possible. Today it looks like the Bulls will push a bit off the end of day rally from yesterday. If the SPY clears 87.50 (and 875 on the SPX) then we might see that drift to 90.00, but a move that big would be a bit more dramatic than I would expect from traders today. But you never know what's in that box of mixed chocolates.....Here is a chart of SPY, which held support yesterday:
(click on image to enlarge)
This market is more of a prance than a scrum right now, so I'm still watching those intra-day swings. Pre-market futures are up a bit, so we will probably see a little gap at the open. The key to an intra-day bullish swing is if the Bulls hold the gap. We shall see.....
Entered some SPY calls this morning with the break of the short term downtrend line. Currently up 17%. Looks like we could still head up another dollar or two.
ReplyDeleteDwight, by the way. I've finally come to realize that trendlines play a huge part in technical analysis. I've been trading primarily with trendlines and support and resistance levels over the past couple of weeks instead of other indicators and my trading has significantly improved. Thanks!
Everyone have a great new year and I have a feeling it's gonna be good to us (as far as trading goes)!
Joe
Laurie-what beautiful words!! I have printed and taped in my trading journal!! Thank you.
ReplyDeleteJoe-I also entered SPY call this AM. Bought @ $4.05 and sold at $4.15. Entered later at $3.70 and was up when the market closed.
Didn't you find the market "fussy" today?
Dwight-thank you so much. 2008 was a wonderful learning experience for me. Am looking forward to 2009.
Thanks to all of you and have a safe and wonderful New Year's!!
Margo
Happy New Year Dwight and to all Associates!!
ReplyDeleteGood on you Joe; hope you take good SPYrofits!
Decided not to pull trigger on my GG calls yet given the holiday lack of volume so will decide tomorrow or Friday if it's losing steam, then I'm out.
Take care everyone and wishing all Peace and Joy for 2009 which should be another great tradeable 12 months!
Francis