October 30th, 2009

The premarket action is pointing down. I guess the 106.50 is the resistance level for SPY. If SPY breaks above that resistance, it could go back up 108 to 108.50 area. Nowadays the market is making a big swing back and forth and closing more than 80 points or more. So the volatility will be there.

October 29th, 2009

Today is my birthday.

Ok. The premarket action is pointing up. Yesterday SPY had hit the low 104. There will be a gap up this morning. Is the SPY bouncing off from 104 and heading back up to 108 or will it close the morning gap.

October 28th, 2009

The market will gap down a little at the opening. The SPY can drop down to 104 area to complete the head and bounce back up to 108 for right shoulder. Watch the SPY at the 50 day moving average.

October 27th, 2009

SPY had an unfinished business on the uptrend to 108.50 and downtrend to 104ish area. It might go back up to 108.50 and then it could drop back down to 104ish or it could continue to go down from to 104ish and then it could bounce back up to 108.50. BIDU is dropping more than 80 points in premarket. Watch GLD at 100 level closely to see how its action plays out.

October 26th, 2009

The market is slightly up in the premarket. The SPY could be in a trading range between 108 and 110. If SPY breaks either way, go with that direction.

October 23rd, 2009

SPY will probably open around 109.9 to 110 area. QQQQ jumped a lots due to AMZN earning from last night. AMZN shop up too. Spot gold moved up last night.

October 22nd, 2009

Yesterday action seemed very negative. But I believe the market is not ready to go down yet. SPY held the support level at 108 and QQQQ at 43. SPY could be in a trading range between 108 to 110 today and tomorrow. If SPY breaks below 108 and closes below 108, go short in the near term.

October 21th, 2009

The premarket action is pointing down. I am watching very closely on AMD, IBM and GS. These stocks already reported earning. All three of them gap down after the earnings, but these stocks went down to the support level. I thought these stocks are making a false breakout. AMD is bouncing off from high 5, GS hanging around 185 and IBM hanging around 122. If these stocks break these levels, you can expect the market will reverse. On the flip side of coin, the market could continue to go higher.

October 20th, 2009

AAPL shot up to above 200. Yet the SPY didn't move up that much except QQQQ.
Today earnings are YHOO, CAT and SNDK.

October 19th, 2009

The premarket action is pointing up. So it could open gap up and it could try to close the morning gap from Friday. Then it will try to close the morning gap from today. I am seeing more and more false breakouts.

False breakout victims: AMD IBM GS RIMM JNJ
Possible false breakout victims: AAPL, BIDU, EBAY

October 16th, 2009

IBM, GE, BAC and AMD went down after earning. GOOG shot up after its earning. Two days in a row the premarket action gap down. Spot gold is continue to be weak.

October 15th, 2009

GS and C had good earning reports this morning, but their stock prices are down in the premarket.
Also the spot gold is down. I believe that it is just a technical move. GOOG will be report its earning after the market close.

October 14th, 2009

Ok. Could today the market hit 10,000? Could today be the day of "blow off top" or "continuation gap"?

October 13th , 2009

INTC will be giving out earning reports after the market close. Let's see what happens for today action.

October 12th, 2009

The market will probably gap up this morning. If it does, the market has a gap today and two gaps from last week. Today action will probably retest the 52 week high. Watch SPY at 108.06. If SPY closes above 108 with strong white bar, it is time to go long. Same with QQQQ at 43.17. I am expecting some kind of resistance at these levels.

October 9th, 2009

In order to complete the "dead cat bounce", the market needs to close at the medium to large size red bar today. As I write this, the premarket is pointing down. For the bears, if the market will opened gap down and continued to go down from there, then yesterday action was an "island top".
It means that a very strong reversal sign for the downtrend. If the market is trying to close the morning gap, watch very closely how it is closing the gap.

I will be having "all hands" meeting at the my job this morning. I don't know how long it will last.
So I might not be available at all this morning.

October 8th, 2009

The market is probably gap up to the resistance level. This action could possibly complete reversal of this week Monday action. The market was way up during the jobless claims reported. It was almost 100 points gain. Since it was at the resistance level, it had level off a lots. For the bears, we need a close below where its opened today.

October 7th, 2009

The market will probably open flat. Let's see how it goes the first 30 minutes.

October 6th, 2009

Last week, I mentioned that SPY at 104.20 was an intermediate step. Also I mentioned that SPY had a chance to hit 104.90 area again. The QQQQ was the laggard. Maybe QQQQ will hit 41.57.

October 5th, 2009

I am expecting some kind of bounce to reach my targets on QQQQ and SPY this week.

October 2nd, 2009

Sorry for the late post again. I hate early meeting on the job.

The market is at the very support level. The SPY is at the major support level at 102.
Either you can play the morning gap or sit in wait to see what will happen. But be careful about "catching a falling knife". I don't know if you have a chance to read my last post from yesterday about similar pattern first couple trading days on September. The first day of September the market went down hard. The following day it continued to trade in a narrow range just below the yesterday low. Today it could be a very similar pattern. It could be the bottom of SPY to set up for a major runup at the end of the year.

October 1st, 2009

I just came back from the meeting. Sorry for the late morning post. I am expecting SPY will trade in the 105ish area today. If the market opens down, play the gap.