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.
Friday, October 9, 2009
Thursday, October 8, 2009
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.
Wednesday, October 7, 2009
Tuesday, October 6, 2009
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.
Monday, October 5, 2009
Friday, October 2, 2009
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.
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.
Thursday, October 1, 2009
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.
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