Tuesday, November 10, 2009
November 10th, 2009
I don't really know what to make yesterday action. It is a trap for longs or a short squeeze for shorts. In 2 out of 3 trading days the market make closing over 200 points move. Eventually, I believe the market will make 300, 400 and even 500 points move. It usually traded in a closing narrow range in the past months or so. Don't be surprise of a big move in the future.
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The SPY, DIA and QQQQ had closed the morning gap.
ReplyDeleteThe DIA broke 52 week high, but SPY and QQQQ hadn't yet.
ReplyDeleteWatch for previously high at 110.31 for SPY and 43.82 for QQQQ.
ReplyDeleteIf SPY and QQQQ go back in negative territory, both of them will be stay in the negative territory for the rest of today.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteI didn't act on my sell signal at the top today. Sell the Breakout after 10:30. oh well. i feel paralyzed. After getting burnt so many times going short..ugh.. well let's hope this right shoulder sets up.
ReplyDeleteKind of also nervous about tomorrow with holiday. Up day? I'll look for short entry tomorrow.
oushe
hessemb
It is not a head and shoulder pattern anymore. It is a double top formation. We could see a counter attack move of yesterday action.
ReplyDeletewe have a bearish engulfing candlestick on the SnP hourly chart. I do not know that I trust it though. Also, oil hitting lows, dollar "trying" to rally a bit, and GDX hittng lows of day.
ReplyDeleteGDX may just be trying to fill the gap from yesterday
ReplyDeleteAs right now, the bears are winning. The bears stopped the big runup from yesterday and today morning right at the resistance level. Does the bears have the momentum to bring it back down?
ReplyDeletewe have a lower high and lower low on SnP hourly candlestick
ReplyDeleteThe SPY failed to stay above 109.50 level. So SPY could retrace back down to 108 target. Again it is 1.5 point move.
ReplyDeleteThe volume is somewhat light. It is either profit taking or orderly controlled sell off.
ReplyDeletecome on 108.
ReplyDeleteThe market is in indecision state. You will see lots of sharp turns here and there. Does it wants to go higher from here or make a sharp reversal from the top?
ReplyDeletecome on 108.
ReplyDeletenot looking so great, for 108. I am pulling for 108 too. market is very strong considering the big move the past few days
ReplyDeletecome on 108.
ReplyDelete108, 108, 108, 108, 108, 108, 108, 108....
ReplyDeleteI was really looking for 107.70.
Short PCLN 207. stop 210
ReplyDeleteMan, can you believe State gave it up against the Buckeyes.
ReplyDeleteWEAK!! and disappointing
JDT, I don't want to say the market is strong going up. The volume is not there. Shorts panicked and covered. I know the SPY will eventually come back down to 108 again this week or next week.
ReplyDeleteWill the last hour of trading today make any significant impact or the market is stuck in this flat area?
ReplyDeletegcl, i feel the same way. hope we (and Matt) are correct, but seems too logical. I am long some SPXU here and sweating it out. I am looking at a weekly chart of SnP and I do not think the rally of yesterday will stick and it will close below a very strong resistance level.
ReplyDeleteIs this legal or anything wrong with this strategy? I have been pondering if this works at all.
ReplyDelete1. Open two different brokers.
2. With one broker (A), buy any stock with a certain price.
3. With another broker (B), short the same stock with the same price.
4. Wait until the trend start either up or down.
5. If the trend is up to the top, sell the stock from broker (A).
6. Buy back the shorts from broker (B) when it is going back down to the same level that you shorted.
7. Repeat again.
sure, it is legal. but who says it will go back down to get you out of your shorts. I think you can do it even with the same broker.
ReplyDeleteThe strategy works if you buy and sell the same stock and the market can go either way. If it goes one way, the hardest part is identify if it is the top or the bottom.
ReplyDeleteI could not do this with TD Ameritrade last year.
ReplyDeleteI went long and short at the same time at close to different prices.
The error was I had to cover my short first and something about the box.
Umm, it is because of tax purposes or something.
But I guess you can get around this with Bear/Bull ETF's these days.
Ah-- found the name for it. google short-against-the-box
http://invest-faq.com/cbc/trade-short-box.html
restesse
BAS, with bear/bull ETFs, the value of the ETFs will lose value over time. It will make a great play for one or two days at most.
ReplyDeleteThe strategy works great for open transactions.
ReplyDeleteHow often that we buy stocks, the market go against us right away or vice versa? This strategy take care of that.
The problem is the close transactions.