I reviewed the market last week action over the weekend. Most investors are expecting a breakout from here. Personally, I believe the last week action was "dead cat bounce". We are looking for QQQQ to hit 39.90 either today or tomorrow.
Last Friday action was very abnormal trading day. It had Bernanke's speech and option expiration day. My model didn't expect the speech at all. So it was screwed from it. It seemed like 10:25 AM area hold for the top as expected. If there is chance that QQQQ closes around 39.90 area today, then last week was definitely a "dead cat bounce" and the speech was a outlier data. The 39.07 for QQQQ is still hold for the target for longer timeframe. My model works for shorter timeframe without any unexpected news or something. There is a shot that SPY could go back up to 103.60 area before closing.
So who won today, the Bears or the Bulls? Based on the action, the Bears won. The Bears were able to pull down the market from this morning high and were able to close the morning gap. It was very interesting action in the last hour. I still have my target for QQQQ to hit at 39.90 tomorrow.
I don't know about you, but I feel like around 10:25 AM was the top for today. SPY at 103.89 and QQQQ at 40.57.
ReplyDeletealmost there.
ReplyDeleteis 39.07 out the door?
Last Friday action was very abnormal trading day. It had Bernanke's speech and option expiration day. My model didn't expect the speech at all. So it was screwed from it. It seemed like 10:25 AM area hold for the top as expected. If there is chance that QQQQ closes around 39.90 area today, then last week was definitely a "dead cat bounce" and the speech was a outlier data. The 39.07 for QQQQ is still hold for the target for longer timeframe. My model works for shorter timeframe without any unexpected news or something. There is a shot that SPY could go back up to 103.60 area before closing.
ReplyDeleteThe last two hours or so the bulls and the bears are fighting back and forth. Who will win?
ReplyDeleteI will find it hard to believe if the bears win.
ReplyDeleteWill GS save the day in the last 10 minutes?
So who won today, the Bears or the Bulls? Based on the action, the Bears won. The Bears were able to pull down the market from this morning high and were able to close the morning gap. It was very interesting action in the last hour. I still have my target for QQQQ to hit at 39.90 tomorrow.
ReplyDeleteIf you have been following the news the last couple months about Madoff's Ponzi Scheme, then read this article about 401(k).
ReplyDeletehttp://finance.yahoo.com/expert/article/richricher/184720