Thursday, September 17, 2009

September 17th, 2009

Sorry for the late post. Can the market go higher? For the next few days, I am expecting the market to go higher and hit a climax soon. Tomorrow it is option expiration date. It can get little weird in trading.

14 comments:

  1. The volume is picking up again twice as fast than the previous days. The action around 10:00 AM is very feasible for the top of today.

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  2. I agree, but damn this market has staying power! Watching the dollar and oil and vix. Vix was up yesterday and so was the SnP. 80% of the time this happens, the market sells off the next day (today). We shall see.

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  3. IYR is starting to roll over. Let's see if financials will follow.

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  4. The faster the market goes up, the harder it will fall and vice versa. For example, about 1 year ago, the market fell fast and finally it found the bottom on March, 2009. So now it climbing back up fast to pre Lehmen collapse.

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  5. This is a good sign for shorts that the the highs of day have not been taken out during this last push higher.

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  6. Also, GE rolled over and APPL has gone ballistic and may be capitulating. Will have to wait until close to see.-

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  7. JDT,
    If you have bias to the short side, don't short until it is rolled over. Most of the money is to be made still on the long side. It was biggest story (commercial real estate is the next shoe to drop) I fell for for the past three months and lost so much in one stock SRS (double short IYR). I know it looks tempting but be careful of predicting tops.
    Another advice is stay with the timeframe you are trading with. Cut your loss immediately if it goes against you.

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  8. Gold stocks rolling over too. I have a huge short position (via SDS) with a tight stop. Because I am in big, I am sure the market will rally today. LOL. I am early and that can be costly.

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  9. Mantra,

    too funny, I just posted an answer to your post and did not even know you posted. Yes, my stop is tight and odds are good my trade will not work. but, i'm in anyway. I like that VIX was up yesterday and SnP was up too. I will take 80% odds any day.

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  10. damn, they have not taken out lows yet, although daily trend line broke on 15 minute chart. BUT, the longer the SnP stays above the lows, the more likely they will try and rally it into close.

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  11. If you want to short the market, I'll probably wait until next week. Tomorrow is the option expiration date. Don't want to mess with that date. Last time, it screwed my targets for QQQQ at 39.07 area.

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  12. yes, OPEX is crazy and usually not successfully tradeable. I agree. This is just a day trade. I hope OPEX does not affect todays trade, which is possible.

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  13. fyi, just sold 1/3 of position, as SnP is on daily trend line from past week.

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  14. SPY is trying push back up to 107.50 area.

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