Thursday, October 22, 2009

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.

27 comments:

  1. wow, i agree again with you gcl. i was short this morning and coverd for a very small profit. this is one strong market and I will go long until momentum shifts.

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  2. JDT, the trend is still up. In order for the trend to change, the market will need to close below the 50 day moving average and the 50 day moving average is going down. I I haven't seen that since March.

    Yes, I know it is too late to short when that case happens because we are not shorting at the top. But how do we know the market is at the top.

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  3. BAS, do you still have EXM?

    Read this article from this link about shipping industry. I think that you will like it.

    http://stocks.investopedia.com/stock-analysis/cotd/EXM20091021.aspx?partner=YahooSA

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  4. SPY bounced off support1 (107.48) actual 107.50..

    i need to pay attention more and play these...but too many people where in the office :(


    oveliti

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  5. gcl, what do you think about a retest of yesterdays break down at 108.8 to 109 on SPY? could roll back over from there.

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  6. Personally, I think SPY could retrace back up to 110 area. Maybe not all the way at once, but chipping away at a time.

    Watch GS at 180. That is the support level.
    Watch X at 40. That is the support level.
    Watch CLF at 37. Another support level.
    Watch BIDU at 400. Another support level.
    Watch AMZN at 90, a support level.

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  7. looks like today might be a reversal day if we stay above 108.23


    apealizi

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  8. BAS, what's the words below all your posts?

    BTW, today is POMO day - money to pump.

    Tomorrow is big red.

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  9. All the words are my fascination with Google Captcha.


    riteopac

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  10. Matt, I agree that tomorrow "may" be red, but just a gut feeling and based on a retrace bounce today. What is your reasoning? also, I will be watching PCP closely. it is market leader and broke a four month uptrend three days ago and is retracing now.

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  11. that reversal and heavy volume sell off was no joke yesterday

    break 108, next stop 104.

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  12. Matt, are you gonna try to short the spike today or wait. here it comes

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  13. i'm an options guy....

    paid 1.95 for the AAPL 195 puts and under 2 for the SPY 108's.

    will not cover until i see 180 on AAPL and 104 on SPY.

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  14. I just sold my long positions and put on a small short. How do you pick you options entry points? do you chart premiums? if, so, where? thanks

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  15. I believe there is still more juice in the rally.

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  16. Investors that shorted yesterday are now covering.

    Like I said in the premarket post, SPY could trade in a range 108 to 110. This morning the bears or shorts got trapped below 108.

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  17. So far today action is completely opposite of yesterday. Of course, the day is not over yet.

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  18. I think that is it for today on upside. got my stops in, in case i am wrong

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  19. SPY could retrace back up to 109.90 to 110.00 area. This is the area when sticky Bove was on the air yesterday.

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  20. I read this about Bove =)


    Larry Levin's Nightly Newsletter & Trading Signals

    Downgraded!

    Early this morning banking analyst Dick Bove was on television claiming Wells Fargo (WFC) was a great buy; that it would add to handsomely to stock appreciation...blah, blah, blah. Then Dick had an epiphany: WFC was a SELL!


    It probably went something like this...

    Hour 1 & 2: prep for television

    Hour 3 &4: actually take the time to read the report

    Hour 4.5: call an emergency meeting with trading desk and share findings

    Hour 4.5 to 5: call temp service to bring in telemarketing staff

    Hour 5 to 6: get on the phone with all institutional clients to share opinion and sell stock and roll proceeds to NOV PUTS (told clients earlier in the year this was a generational buying opportunity)

    Hour 6 and 8: let the trading desks work their magic

    Hour 9: let the cat out of the bag

    Ya think he'll be investigated by the SEC? Naaaah, me neither.

    ----
    phinon

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  21. Bas, that's about how it works.

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  22. Today's SPY range 107.50 - 109.68

    Resistance 1 was 109.64. (hit this afternoon)
    Support 1 was 107.48. (hit this morning)

    Yesterdays close 108.23 was danced about all morning until the head fake and reversal.

    Completely amazing how they managed to nail both numbers..

    yeati

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  23. Was fun trading in the last two days?

    Yesterday the bulls got trapped. Today the bears got trapped. The SPY will continue to trade between 108 to 100 tomorrow.

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  24. double top on AMZN from Oct. 2007??

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  25. Have you noticed anything about individual stocks after giving out its earning?

    AMZN, GOOG, INTC and AAPL jumped big after its earning
    IBM, GS, BAC dropped after the earning.

    Here's the clue. AMZN, GOOG, INTC and AAPL are belong to NASDAQ while IBM, GS, BAC and others belong to NYSE.

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